UK sees 38% drop in white-collar jobs as AI advances
What's the story
A recent analysis by McKinsey & Co. has revealed that artificial intelligence (AI) is having a major impact on the UK's job market. The study found that online job vacancies in the country have dropped by an overall 31% in the three months to May compared to the same period in 2022, with white-collar roles most exposed to AI witnessing a massive decline of 38%. The findings highlight how rapidly evolving technology is reshaping employment opportunities across various sectors.
Job market shift
Decline of entry-level jobs
The McKinsey report also highlighted a significant decline in entry-level jobs, which have dropped by nearly one-third since late 2022. This trend can be attributed to the rise of AI technologies like ChatGPT. Further, roles such as programming, consulting, and graphic design have witnessed particularly sharp declines of over 50% in three years, as companies pause hiring and lean into AI for efficiency.
Sector transformation
Impact on data science and analytics fields
The impact of AI on the job market is particularly evident in fields like data science and analytics. Vacancies in these areas have dropped by nearly 50% from pre-pandemic levels, highlighting how much AI is reshaping these professions. The trend comes as employers are being extra cautious about new hires amid a slowing UK economy and rising borrowing costs. They are trying to figure out how to balance AI's benefits with real jobs.