UK Job Market Divides as AI Skills Demand Hits Record 9.4% While Graduate Hiring Plummets to 2020 Lows

UK hiring falls but demand for AI skills jumps, job site Indeed says

LONDON, Aug 3 (Reuters) - British hiring fell in the first six months of 2026 with job postings for graduates at their lowest since 2020, according to a survey from recruitment platform Indeed published on Monday that also showed demand for AI skills hit a record high. "The UK's labour market is under sustained pressure. Hiring demand is falling across most parts of the economy, while posted wage growth is gradually cooling," ⁠Indeed senior economist Jack Kennedy said. "That is particularly challenging for graduates and younger workers, who are competing for fewer opportunities to gain an initial foothold." Reporting by Suban Abdulla Editing by William Schomberg Our Standards: The Thomson Reuters Trust Principles., opens new tab

AI is creating a two-speed jobs market in the UK, Indeed says | Fortune

UK employers are creating jobs for experienced staff with artificial intelligence skills and cutting back elsewhere, according to new figures that show how the technology is starting to create a two-track labor market. British firms posted about 10% fewer vacancies this month than in January 2025, data from job search website Indeed shared with Bloomberg shows. However, the fall disguised wide disparities as firms increasingly adopt AI to cut costs and boost productivity. Software developers, whose profession has been transformed by AI and suffered dramatic job losses since 2022, are back in demand with postings rising 14%. Much of the increase came from senior roles and those directly linked to AI. Meanwhile, occupations such as IT and engineering, where AI enhances the value of experience by taking over routine tasks, are among the few that have held up since last summer. Elsewhere, from retail and manufacturing to white-collar roles that are more vulnerable to substitution like accounting or marketing, vacancies have fallen by double digits as employers take action to cope with higher employment costs and a more volatile economy. "The UK labor market is increasingly splitting into two speeds," said Jack Kennedy, senior economist at Indeed. "Demand is concentrating around experienced workers and roles directly connected to AI, rather than flowing evenly through the profession." The nature of the jobs being created -- leaning toward senior staff with specific technological skills -- also means that they will be out of reach for many of those looking to move jobs, re-enter the labor market or land their first role. That casts doubt on Prime Minister Andy Burnham's plans to encourage more young people to pursue technical qualifications as a way to future-proof their careers. In a social media video, Burnham argued that AI may be able to write an essay, but it can't make a train. However, hiring has slowed steeply for blue-collar occupations. Manufacturing postings are down 58% since June 2022, and 18% below where they were last summer. Installation and maintenance, loading and stocking and construction jobs, have also failed to recover. Youth unemployment in Britain is at its highest in over a decade, a problem Bank of England Governor Andrew Bailey blames on a "low hire, low fire" economy. "For jobseekers, particularly those at the start of their careers, the bar is therefore rising as the stronger areas of the market increasingly require either specialist AI capability or substantial experience," Kennedy said.

AI creates two-speed UK jobs market as demand shifts to senior tech roles By Investing.com

Investing.com -- Artificial intelligence is creating a two-speed UK labour market, with employers hiring experienced technology workers while cutting vacancies across retail, manufacturing and several white-collar professions, Bloomberg reported, citing data from Indeed. British companies posted about 10% fewer jobs in July than in January 2025, reflecting higher employment costs and uncertainty across the wider economy. The overall decline concealed sharp differences between occupations. Software-development vacancies rose 14%, with much of the growth concentrated in senior positions and roles directly connected to AI. Hiring has also remained comparatively resilient in information technology and engineering, where AI tools can take over routine work and increase the productivity of experienced employees. Vacancies in retail and manufacturing have fallen by double digits. White-collar professions more exposed to AI substitution, including accounting and marketing, have also suffered significant declines. Manufacturing job postings are down 58% from June 2022 and 18% below their level last summer. Vacancies in construction, installation, maintenance, loading and stocking have also failed to recover. The shift suggests that companies are using AI to reduce costs and automate entry-level or repetitive tasks, while competing for workers who can deploy the technology effectively. This creates a more difficult environment for recent graduates, people returning to employment and workers seeking to change careers. Many of the stronger areas of the market now require specialist AI knowledge or substantial professional experience. The trend could complicate Prime Minister Andy Burnham's plan to encourage more young people to pursue technical qualifications. Training alone may not provide access to roles where employers also demand years of experience. Youth unemployment in Britain has reached its highest level in more than a decade. Bank of England Governor Andrew Bailey has described the country as having a "low hire, low fire" economy, in which businesses retain existing staff but remain reluctant to recruit. Continued weakness in entry-level hiring could widen the experience gap and leave fewer routes into sectors benefiting most from AI adoption.

UK hiring falls but demand for AI skills jumps, job site Indeed says

LONDON, Aug 3 (Reuters) - British hiring fell in the first six months of 2026 with job postings for graduates at their lowest since 2020, according to a survey from recruitment platform Indeed published on Monday that also showed demand for AI skills hit a record high. "The UK's labour market is under sustained pressure. Hiring demand is falling across most parts of the economy, while posted wage growth is gradually cooling," Indeed senior economist Jack Kennedy said. "That is particularly challenging for graduates and younger workers, who are competing for fewer opportunities to gain an initial foothold." o Job postings fell by 11% between the start of 2026 and July 17 and were 32% lower than before the COVID-19 pandemic o Advertised wage growth cooled to 3.9% annually in the three months to June, the slowest since February 2022 o Graduate job postings were down 7% year-on-year as of July 10 and were at their lowest level for the time of the year since 2020 o Summer job postings, which cover temporary and seasonal roles, were the weakest in four years o At the end of June, AI or related tools and programmes appeared in 9.4% of UK job postings, a record high o Britain has faced a worsening youth unemployment crisis since the pandemic, with more than a million 16-to-24-year-olds not in education, employment or training, according to previously released data o Last week, new Prime Minister Andy Burnham announced plans to align technical education and training for young people with local employment needs. (Reporting by Suban AbdullaEditing by William Schomberg)