A recent study by the Chartered Institute of Personnel and Development (CIPD) has highlighted the job sectors most vulnerable to automation by Artificial Intelligence (AI) in the upcoming year. According to the survey of over 2,000 employers, approximately 17% anticipate a reduction in their workforce due to AI, with a focus on clerical, junior managerial, professional, and administrative positions.
The study revealed that 26% of employers in large private companies foresee a decrease in their workforce, compared to 17% in the private sector and 20% in the public sector. Among those expecting job cuts, about a quarter (26%) anticipate losing over 10% of their workforce, while 22% of employers plan to make staff redundant in the final three months of 2025, with 61% planning to recruit for new positions.
James Cockett, a senior labor market economist at CIPD, emphasized the transformative impact of AI on various job roles and stressed the importance of national initiatives for retraining and upskilling workers across all career levels. He highlighted the necessity for swift progress in the development of the Growth and Skills Levy, in consultation with employers, to equip workers with the essential skills for an AI-driven economy.
With the UK’s unemployment rate reaching 5% in the September quarter, the Office for National Statistics noted this as the highest level since August 2016, excluding the abnormal levels during the pandemic. The evolving job market dynamics due to AI implementation and economic factors are shaping the future employment landscape, emphasizing the significance of workforce planning and skill development to navigate the evolving job market effectively.
