AI's Impact on UK Job Market: Entry-Level Positions Plummet Post-ChatGPT Launch

AI's Growing Impact on UK Job Market

The UK job market is experiencing a significant shift as artificial intelligence (AI) technologies, particularly ChatGPT, reshape employment opportunities. Recent research by job search site Adzuna has revealed a 32% decrease in entry-level job vacancies since the launch of ChatGPT in November 2022 1

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. This decline has reduced the proportion of entry-level positions in the UK job market from 28.9% in 2022 to 25% in 2025.

Changing Landscape of Entry-Level Opportunities

The research encompasses a range of positions, including graduate jobs, apprenticeships, internships, and junior roles without degree requirements. This trend aligns with a separate report from Indeed, another job search platform, which noted that university graduates are facing the toughest job market since 2018, with a 33% year-on-year decrease in advertised roles for recent graduates 1

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Corporate Adoption of AI and Its Consequences

Major companies are increasingly turning to AI as a means to enhance efficiency and reduce staff numbers. For instance:

1. BT's CEO, Allison Kirkby, has suggested that AI advancements could lead to more significant job cuts at the telecom giant 1

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2. Klarna, a fintech company, reports that its AI assistant now handles two-thirds of customer service queries 1

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3. IBM is utilizing AI agents to perform tasks previously done by hundreds of HR staff 1

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Predictions and Warnings

The impact of AI on employment is becoming increasingly apparent:

1. Dario Amodei, CEO of Anthropic, warns that AI could eliminate half of all entry-level office jobs within five years and potentially increase unemployment by 10-20% 1

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2. The International Monetary Fund estimates that 60% of jobs in advanced economies like the US and UK are exposed to AI, with half potentially facing negative effects 1

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Skill Demand and Wage Disparities

The rise of AI is also influencing skill requirements and wage structures:

1. A PwC report indicates that workers with AI skills earned 56% more than those without in 2024, up from a 25% difference the previous year 1

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2. The demand for skills is evolving 66% faster in occupations most exposed to AI compared to less exposed roles 1

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Government Response and Future Outlook

UK Technology Secretary Peter Kyle has urged workers and businesses to "act now" in adapting to AI or risk being left behind 1

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. While the debate continues on whether AI will create or destroy more jobs overall, the current trend suggests a significant reshaping of the job market, particularly for entry-level positions and recent graduates 2

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