Labor market in the United Kingdom: AI ensures 31% job cuts!

Labor market in the United Kingdom: AI ensures 31% job cuts!

Vereinigtes Königreich - The labor market in the United Kingdom experiences a turbulent phase, and that has a lot to do with the rapid development in the world of artificial intelligence (AI). South Morning Post reported to reduce the hiring of workers in appointed by AI are. The need for workers disappears, and this is also reflected in the number of vacancies.

A current study by McKinsey & Co shows how dramatically the situation has changed: compared to the same period in 2022, the number of online job offers has dropped by a whopping 31 percent. Professions in technology and finances are particularly affected, where the declines in the job offers even reach 38 percent. Tera Allas, Senior Advisor at McKinsey, makes it clear that companies rethink their personnel strategies and pause some recruits to wait for the productive advantages of the new technologies.

The illustration of the AI on the labor market

The consequences of the Ki introduction cannot be overlooked. Ainvest reports that the British worker has experienced a significant decline over the past few months. The labor market slows down while the job offers are heavily decreasing. These declines are all the more pronounced in various sectors that are particularly subject to technological changes.

The challenge is not only limited to highly qualified professions. The job cuts also blooms in the area of beginner jobs - such as internships and apprenticeships. The number of these offers has dropped by almost a third since the introduction of Chatgpt at the end of 2022. This draws the situation for newcomers, which are often dependent on these areas, considerably down, with James Neave from Adzuna emphasizing the difficulties that arise from the current economic conditions.

• 38% decline in technology and financial jobs
• 50% fewer positions in programming and management advice in the past three years
• job offers in data science have shrunk by about 50% before the pandemic

These developments are part of a wider tendency that describes the influence of AI on the labor market. BPB pointing out that the progress in the AI could not only contain potential job losses, but can also create new opportunities. Technological change is unstoppable, and not all industries are the same. Some areas, such as education or real estate, even had an increase in the job offers.

However, there are not only positive effects. The risk that jobs will be replaced or that the workload of the remaining employees will increase should not be underestimated. AI could help reduce the shortage of skilled workers, but numerous challenges and risks must also be overcome. The necessary regulation in AI usage is becoming more and more a hot topic, especially in view of the new EU guidelines that were adopted in June 2023.

The question remains: What will the job market look like in the coming years? Data indicates that AI could potentially affect up to 66% of jobs. However, a successful handling of this development could boost the innovative strength of the economy and open up new fields of employment. It remains to be seen whether companies can take advantage of these opportunities and at the same time meet the challenges.