Advertisement

AI is already showing signs of slashing job openings in the UK

Job vacancies have declined across the board in the UK as employers cut costs in the face of sluggish growth and high borrowing rates

Reading Time:2 minutes
Why you can trust SCMP
0
A view of the city of London, Britain, July 11 2025. Photo: EPA

UK businesses are dialling back hiring for jobs that are likely to be affected by the roll-out of artificial intelligence, a study found, suggesting the new technology is accentuating a slowdown in the nation’s labour market.

Job vacancies have declined across the board in the UK as employers cut costs in the face of sluggish growth and high borrowing rates, with the overall number of online job postings down 31 per cent in the three months to May compared with the same period in 2022, a McKinsey & Co analysis found.

But it has been the most acute for occupations expected to be significantly altered by AI: Postings for such jobs – like white-collar ones in tech or finance – dropped 38 per cent, almost twice the decline seen elsewhere, according to the consulting firm.

“The anticipation of significant – albeit uncertain – future productivity gains, especially as the technology and its applications mature, is prompting companies to review their workforce strategies and pause aspects of their recruitment,” said Tera Allas, a senior adviser at McKinsey.

The decline in job vacancies has been the most acute for occupations expected to be significantly altered by AI. Photo: Shutterstock Images
The decline in job vacancies has been the most acute for occupations expected to be significantly altered by AI. Photo: Shutterstock Images

The trend appears to be exerting another drag on the UK job market just as tax increases prompt cuts in lower-skilled sectors like retail and hospitality and the pace of economic growth stalls.

Advertisement
Select Voice
Choose your listening speed
Get through articles 2-3x faster
1.1x
220 WPM
Slow
Normal
Fast
1.1x