The jobs market is already cooling, with companies scaling back on hiring and increasing lay-offs in response to the Chancellor’s National Insurance hike and a rise in the minimum wage.
One in ten graduates have already altered their career plans due to fears that artificial intelligence (AI) will jeopardise their job prospects. University leavers aiming for careers in graphic design, coding, film and art are particularly worried about the impact of AI, with many fearing the rapidly evolving technology could make their jobs redundant.
These concerns arise as Britain’s job market continues to cool, with firms cutting back on recruitment and increasing redundancies in response to the Chancellor’s National Insurance increase and a rise in the minimum wage. According to a survey of 4,072 individuals by university and career advisers Prospects, 10 percent stated they had changed their career plans because of AI, a figure that rises to 11 percent among graduates.
The primary reason given was worry that their chosen jobs could become redundant. Opportunities in the creative industries were highlighted as being particularly at risk from AI’s rapid progression.
Risks and opportunities
Chris Rea from Prospects noted that while many graduates are avoiding certain careers due to AI, others are exploring new industries because of the opportunities the technology offers, reports the Express.
Jeremy Swan, from the Association of Graduate Careers Advisory Services, said technological advances are forcing graduates to seek roles where they cannot be easily substituted by AI.
He stated: “I think it’s about re-framing people’s thinking, so that they can see there are opportunities out there that look slightly different than what they’re used to.”
Mr Swan said AI has left many students and graduates feeling “really uncertain about where they stand”.
Data from job search platform Adzuna reveals entry-level positions have plummeted by 32 percent since Chat GPT launched in November 2022.
Mr Swan added: “There’s a lot of uncertainty that’s come off the back of AI, people worrying how it’s going to affect their chosen career paths, and we would just say this is where decent career support matters more than ever.”
Jobs least exposed to AI:
Logging equipment operators.
Motorboat operators.
Orderlies.
Floor sanders and finishers.
Pile driver operators.
Rail-track laying and maintenance equipment.
Foundry moulders and coremakers.
Water treatment plant and system operators.
Bridge and lock tenders.
Dredge operators.
Jobs most exposed to AI:
Interpreters and translators.
Historians.
Passenger attendants.
Sales representatives of services.
Writers and authors.
Customer service representatives.
CNC tool programmers.
Telephone operators.
Ticket agents and travel clerks.
Broadcast announcers and radio DJs.
Recruitment has declined LinkedIn data reveals that UK hiring dropped by 6.7 percent in June compared to May, following a 3.9 percent increase the previous month. Official statistics also show that unemployment rose to a four-year high of 4.7 percent in the three months leading up to May.
Bank of England Governor Andrew Bailey recently suggested that larger interest rate cuts may be necessary if the jobs market continues to slow down. City traders predict rates could be reduced from 4.25 percent to 4 percent at Thursday’s Monetary Policy Committee meeting.
University graduates are now facing an increasingly challenging job market as employers reduce graduate recruitment. Data from Adzuna shows that graduate job listings have plummeted by nearly 23 percent in the year to April as rising taxes lead businesses to cut back on entry-level hiring.
Meanwhile, increases to the national living wage mean many graduate schemes now only offer salaries equivalent to the minimum wage, which is currently £12.21 per hour or £25,500 a year for full-time workers.
Major employer KPMG has reduced its recruitment scheme, hiring just 942 graduates and school leavers last year compared with 1,399 in 2023. The company expects to hire around 1,000 this year.
The competition for entry-level roles is more intense than ever, leading many graduates to utilise AI for assistance with job applications. According to a survey by Prospects, 43 percent have used AI to edit or draft a cover letter, while 26 percent have employed it for answering questions on application forms.
However, Mr Swan suspects that students might be under-reporting their use of AI.
He advised students to ensure they use “these tools in an ethical way”, even if AI can provide a starting point for CVs or cover letters.