Businesses in Britain are dialling back hiring for jobs that are likely to be affected by the roll-out of artificial intelligence, a study found, suggesting the new technology is accentuating a slowdown in the nation\u2019s labour market.<\/p>\n
Job vacancies have declined across the board in Britain as employers cut costs in the face of sluggish growth and high borrowing rates, with the overall number of online job postings down 31 per cent in the three months to May compared with the same period in 2022, a McKinsey & Co analysis found.<\/p>\n
But it has been the most acute for occupations expected to be significantly altered by AI: Postings for such jobs \u2013 like white-collar ones in tech or finance \u2013 have dropped 38 per cent, almost twice the decline seen elsewhere, according to the consulting firm.<\/p>\n
\u201cThe anticipation of significant \u2013 albeit uncertain \u2013 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,\u201d said McKinsey senior adviser Tera Allas.<\/p>\n
The trend appears to be exerting another drag on the job market in Britain just as tax increases prompt cuts in lower-skilled sectors like retail and hospitality and the pace of economic growth stalls.\u00a0<\/p>\n
Occupations considered to be highly exposed to AI \u2013 meaning the technology can replace at least some of the tasks involved \u2013 have recorded the sharpest contractions in vacancies, McKinsey\u2019s analysis showed. <\/p>\n
Demand for jobs such as programmers, management consultants or graphic designers has fallen by more than 50 per cent over the last three years.<\/p>\n
Some of that may also be due to industry-specific issues and a challenging macroeconomic backdrop. <\/p>\n
But McKinsey said in some sectors, like professional services and information technology, the number of job openings dropped even as businesses reported healthy growth rates.<\/p>\n
Data shared by job search website Indeed also indicated early signs that AI is affecting hiring decisions. <\/p>\n
It showed that employers tend to cut hiring in fields that involve building or using AI tools, according to Dr Pawel Adrjan, director of Europe, Middle East and Africa economic research at the Indeed Hiring Lab.<\/p>\n
For example, vacancies in mathematics, which mainly consist of data science and analytics roles, had the highest share of AI mentions in job descriptions but are down almost 50 per cent from pre-pandemic levels, Indeed figures showed. <\/p>\n
At the other end of the spectrum, real estate or education jobs that barely mention the technology grew over the period.<\/p>\n
Some entry-level jobs involving tasks like summarising meetings or sifting through documents are particularly exposed to AI, accelerating a decline in such roles as companies streamline headcount costs.<\/p>\n
Entry-level postings, which include apprenticeships, internships or junior jobs with no degree requirements, have fallen by almost a third since ChatGPT came to market at the end of 2022, according to data from job-search website Adzuna.<\/p>\n
\u201cThe rapid rise of artificial intelligence is adding pressure on young job seekers, who are still in the grip of the Covid-19 aftermath, marked by inflation, economic headwinds and low business confidence,\u201d said Mr James Neave, head of data science at Adzuna. BLOOMBERG<\/p>\n<\/p>\n
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