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2h ago

CIPD: One in Six UK Employers Expect AI-Driven Job Cuts as Pay Settlements Hold at 3%

The HR body urges skills investment with restraint on hiring-dampening tax moves before the Nov. 26 budget.

Commuters cross London Bridge in view of the City of London skyline in London, Britain, July 25, 2024. REUTERS/Hollie Adams/File Photo
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The jobs market is grappling with slower hiring since employment costs rose in last year’s budget

Overview

  • A survey of more than 2,000 employers conducted from Sept. 19 to Oct. 14 finds recruitment plans near their weakest since the pandemic, with particular softness in the public sector.
  • One in six employers expect AI tools to reduce headcount within 12 months, and 26% of that group foresee cuts exceeding 10%.
  • Employers most often flag junior managerial, clerical, professional and administrative roles as the likeliest to be displaced by automation.
  • Median basic pay rises are expected to be 3% over the next year, holding steady for a sixth consecutive quarter.
  • CIPD urges government retraining support and progress on a growth and skills levy, pointing to recent corporate cuts and expanding AI investment as signals of workplace change.