Large crowd of people commuting to work in London, England · JohnnyGreig via Getty Images
UK firms are cutting back on hiring for roles that are more likely to be disrupted by artificial intelligence (AI), research showed amid a broader slowdown in the jobs market.
An analysis by consultancy firm McKinsey & Co, published on Monday, found that the overall number of job postings were down 31% in the three months to May, compared to the same period in 2022.
However, the drop in postings was found to be the most pronounced in roles expected to be more impacted by the rollout of AI, such as tech or finance. Listings for these roles declined 38% in that three month period, which nearly double the fall found elsewhere.
Tera Allas, a senior adviser at McKinsey, reportedly said: “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.”
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Some major companies have already suggested that their workforce will be impacted by AI. For example, Amazon (AMZN) CEO Andy Jassy recently warned that the rollout of AI across the tech company would likely result in jobs cuts in the coming years. Meanwhile, BT Group (BT-A.L) CEO Allison Kirkby said last month that advances in AI could deepen job cuts already under way at the telecoms company.
McKinsey’s study comes as data points to a broader slowdown in the UK jobs market. Data released by the Office for National Statistics (ONS) on Thursday, showed that the UK’s rate of unemployment ticked up to 4.7% in the March to May period. This was highest rate in around four years and was up from 4.6% for the three months to April.
The number of job vacancies in the UK also fell, declining by 56,000 in the three months to June. The ONS said feedback from its vacancy survey suggested some firms may not be recruiting new workers, or replacing workers who have left.
Earlier this week, we asked Yahoo Finance UK readers if they were worried about the impact of AI on the jobs market. We received 840 votes, with 65% of respondents saying that they were concerned, while 27% were not and 8% were undecided on the matter.
Are you worried about the impact of AI on the jobs market?
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