UK's Job Market Under Siege as AI Takes a Devastating Toll
A new study by investment bank Morgan Stanley has found that the UK is losing more jobs than it is creating due to artificial intelligence. The research, which surveyed British companies across five industries for at least a year, revealed an alarming net job loss rate of 8%, the highest among major economies including the US, Japan, Germany, and Australia.
According to Morgan Stanley, AI has resulted in significant productivity gains for UK businesses, with an average increase of 11.5%. However, this growth comes at a steep price – as higher costs and taxes erode the job market. Unemployment rates have hit a four-year high, further exacerbated by rising minimum wages and employer national insurance contributions that squeeze hiring.
The survey found that British workers are particularly vulnerable to the rise of AI, with over a quarter expressing concerns that their jobs could disappear completely in the next five years. Younger workers, especially those in Gen Z, are most apprehensive about the impact of AI on their employment prospects and ability to adapt. In contrast, baby boomers appear more self-assured.
Businesses surveyed by Morgan Stanley indicated that early-career jobs requiring two to five years of experience would be among the first to go as a result of AI-driven changes. This trend is echoed in London Mayor Sadiq Khan's warnings about the city facing "mass unemployment" due to its reliance on white-collar workers in key sectors.
Khan argued that it is essential for governments and businesses to act collectively to create new jobs, prioritizing entry-level and junior positions first. The World Economic Forum has previously highlighted the need for such measures to mitigate the impact of technological disruption on workers.
Meanwhile, Jamie Dimon, JP Morgan's CEO, urged policymakers to intervene to support displaced workers, lest it spark civil unrest. As the UK grapples with the AI-induced job market crisis, these warnings underscore the urgent need for a proactive response to safeguard workers' livelihoods and ensure a more equitable future of work.
A new study by investment bank Morgan Stanley has found that the UK is losing more jobs than it is creating due to artificial intelligence. The research, which surveyed British companies across five industries for at least a year, revealed an alarming net job loss rate of 8%, the highest among major economies including the US, Japan, Germany, and Australia.
According to Morgan Stanley, AI has resulted in significant productivity gains for UK businesses, with an average increase of 11.5%. However, this growth comes at a steep price – as higher costs and taxes erode the job market. Unemployment rates have hit a four-year high, further exacerbated by rising minimum wages and employer national insurance contributions that squeeze hiring.
The survey found that British workers are particularly vulnerable to the rise of AI, with over a quarter expressing concerns that their jobs could disappear completely in the next five years. Younger workers, especially those in Gen Z, are most apprehensive about the impact of AI on their employment prospects and ability to adapt. In contrast, baby boomers appear more self-assured.
Businesses surveyed by Morgan Stanley indicated that early-career jobs requiring two to five years of experience would be among the first to go as a result of AI-driven changes. This trend is echoed in London Mayor Sadiq Khan's warnings about the city facing "mass unemployment" due to its reliance on white-collar workers in key sectors.
Khan argued that it is essential for governments and businesses to act collectively to create new jobs, prioritizing entry-level and junior positions first. The World Economic Forum has previously highlighted the need for such measures to mitigate the impact of technological disruption on workers.
Meanwhile, Jamie Dimon, JP Morgan's CEO, urged policymakers to intervene to support displaced workers, lest it spark civil unrest. As the UK grapples with the AI-induced job market crisis, these warnings underscore the urgent need for a proactive response to safeguard workers' livelihoods and ensure a more equitable future of work.
i mean whats wrong with humans doing human things? why do we need ai to do everything? 
what will happen to all those ppl? its time for govts and businesses to step up their game and create new opportunities 
I'm not surprised tho, productivity gains are sick 
but who's gonna pay the bills? 
And what about all these young folks worried about their futures? 
Gen Z is already struggling to find a decent gig, and now AI is just adding fuel to the fire 
. Businesses gotta step up & create new jobs ASAP, or else we'll have a whole lot of angry people on our hands 
like they're just a means to an end. It's so unfair that the younger generation is already freaking out about their jobs disappearing in 5 years 
And don't even get me started on how businesses are just gonna sit back and let this happen... I mean, who's gonna lose their job first? the ones with two to five years of experience? 
that's just a ticking time bomb waiting to go off. We need some major intervention from governments and companies ASAP or else it's gonna be total chaos 
But seriously, AI is having a massive impact on the job market, especially in the UK. I'm not surprised, though - it's been making waves for years now 
. The fact that over a quarter of British workers are worried about losing their jobs due to AI is pretty scary, but at the same time, it's awesome that we're having this conversation 
.
. We just gotta be smart about it 
.
. The fact that we're losing jobs at an alarming rate because of automation is a clear sign that we're not prepared for the future. I think it's crazy that companies are making all this money off AI productivity gains while leaving their workers to fend for themselves 
. We need businesses and governments to work together to create new jobs, especially entry-level positions 
. We owe it to ourselves and our future generations 
. Seriously though, this UK job market situation is wild. 8% net job loss rate is no joke. I'm all for innovation, but not at the cost of people's livelihoods. It's crazy that younger workers are most worried about their jobs disappearing in 5 years 
But at least there's some good news – with productivity gains and all. Maybe we'll see more focus on upskilling and reskilling programs? 
That'd be a step in the right direction. Governments and businesses gotta work together, like Khan said. We can't just sit back and watch our society become obsolete 
And yeah, younger workers like Gen Z are gonna be stuck in a tough spot 
? Are we assuming that all young workers are going to be easily replaceable by robots? And baby boomers being more self-assured just because of their age is a pretty simplistic explanation. I'd love to see some real data on how these age groups are actually coping with AI.
. Where's the concrete plan here? What specific policies or initiatives can we expect from our leaders? This just seems like a bunch of fluffy warnings without any real substance. Can someone provide some sources to back up these claims? 
. And don't even get me started on how this affects Gen Z - they're already struggling with student debt and uncertain futures. We need to think outside the box (or robot) and find new ways to create jobs that don't rely on automation 
.
. I mean, 8% net job loss in the UK? That's insane! According to Morgan Stanley, AI has brought 11.5% productivity gains, but at what cost? Workers are getting squeezed out by rising costs and taxes 
. We can't just sit back and watch mass unemployment unfold in London 
. This AI-induced job market crisis is a ticking time bomb, and we need to defuse it ASAP 
.
. We need new jobs created ASAP, not just more taxes on employers 
. Governments and businesses gotta work together on this one 
Anyway, businesses need to start thinking about these entry-level positions first or else people are gonna end up on the streets 