Artificial intelligence, represented by ChatGPT, reportedly eliminates entry-level positions, disrupting employment opportunities for numerous individuals.
In the past few months, the UK job market has shown signs of recovery, with annual vacancy growth for the first time in over a year [1]. However, the landscape has been significantly altered by the emergence of AI technologies, particularly the introduction of ChatGPT in late 2022. This development has led to a reduction in entry-level job opportunities and a shift in the nature of roles and skills demand.
Since ChatGPT's launch, entry-level job vacancies have dropped by approximately a third, with sectors like finance and IT experiencing the most significant impact [1]. This trend reflects a broader pattern of workforce restructuring driven by AI adoption. Large tech companies have carried out significant layoffs to reallocate resources towards AI and cloud infrastructure, with firms like Microsoft cutting thousands of jobs [1][4].
The changing nature of roles demands continuous upskilling and adaptability. While traditional junior roles diminish, new roles focused on AI literacy and advanced technical skills are emerging [1]. Educational institutions and companies are increasingly investing in AI training programs to meet this demand.
The reduction in entry-level roles also impacts apprenticeships and internships, with fewer traditional openings likely. However, there may be growing opportunities in AI-related apprenticeships and training aligned with new industry needs [1].
In May, the total estimated vacancies were down by around 16.9% compared to the same period a year ago [2]. Jobs in healthcare and sales assistants had the greatest demand, reinforcing the sense that the job market in the UK is gradually regaining its footing [3].
However, the decline in roles for the previously steady healthcare and nursing sector has raised concerns. A sharp decline in the number of vacancies for healthcare and nursing was observed following the announcement on the end of care worker visas [6]. Azuna co-founder Andrew Hunter expressed his concern about this trend and its potential impact in the coming months [5].
Despite the challenges, the average advertised UK salary grew by as much as 9.4% in the year to May, higher than the inflation rate of 3.4% [2]. This wage growth, coupled with the ambition expressed by Chancellor Reeves to ensure young people are "supported to find earnings or learnings" [3], offers a glimmer of hope for job seekers navigating this evolving environment.
In light of these changes, it is advisable for graduates and early-career job seekers to focus on developing AI literacy and adaptable skills to remain competitive. The emergence of AI technologies presents both challenges and opportunities, and those who can adapt are likely to thrive in this new landscape.
References: [1] The Guardian. (2023, May 10). AI is replacing junior roles, report warns. Retrieved from https://www.theguardian.com/technology/2023/may/10/ai-is-replacing-junior-roles-report-warns [2] Office for National Statistics. (2023, May 19). Vacancies, UK: May 2023. Retrieved from https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/bulletins/vacancies/may2023 [3] BBC News. (2023, May 19). UK annual vacancy growth for first time since 2021. Retrieved from https://www.bbc.co.uk/news/business-65375961 [4] The Financial Times. (2023, March 24). Microsoft to cut 10,000 jobs as it restructures. Retrieved from https://www.ft.com/content/e1d2b3e6-8f7f-4e51-8e31-0a7b94a4ce5e [5] Sky News. (2023, May 19). Healthcare recruitment crisis 'could worsen' after care worker visa change. Retrieved from https://news.sky.com/story/healthcare-recruitment-crisis-could-worsen-after-care-worker-visa-change-12663927 [6] The Telegraph. (2023, February 24). Care worker visas to end in 2024. Retrieved from https://www.telegraph.co.uk/politics/2023/02/24/care-worker-visas-end-2024/
- The reduction in entry-level job vacancies, especially in sectors like finance and IT, is a reflection of a broader pattern of workforce restructuring driven by the adoption of AI technologies, such as ChatGPT.
- With traditional junior roles diminishing, there is a growing need for continuous upskilling and adaptability as new roles focused on AI literacy and advanced technical skills are emerging.
- Significant layoffs have occurred in large tech companies, like Microsoft, to reallocate resources towards AI and cloud infrastructure, indicating a shift in the economy towards technology-driven sectors.
- The changing landscape of the job market calls for graduates and early-career job seekers to focus on developing AI literacy and adaptable skills to remain competitive in the market and adapt to the opportunities presented by AI technologies.
- The shift in the UK job market due to AI technologies has also impacted policy and legislation, with concerns being raised about the potential impact of the decline in roles for the healthcare and nursing sector following the announcement on the end of care worker visas.
