A recent study conducted by the Chartered Institute of Personnel and Development (CIPD) has identified the occupations most vulnerable to displacement by artificial intelligence (AI) within the next year. According to the survey involving more than 2,000 employers regarding their recruitment, layoff, and compensation strategies for the upcoming year, approximately 17% of employers anticipate a reduction in their workforce due to AI, with the majority (62%) pinpointing clerical, junior managerial, professional, or administrative positions as the most susceptible.
The research further indicates that 26% of employers in large private sector companies anticipate a reduction in their workforce, compared to 17% in the private sector and 20% in the public sector. Among those expecting workforce reductions, a quarter (26%) anticipate losing over 10% of their employees, while 22% of employers plan to implement redundancies in the final three months of 2025. However, a significant proportion (61%) are planning to recruit for new positions during this period.
James Cockett, a senior labor market economist at CIPD, emphasized the transformative impact of AI on the workforce, noting the urgent need for a national initiative to retrain and upskill individuals across various age groups and career stages. The development of the Growth and Skills Levy is crucial, informed by meaningful consultation with employers, to ensure that workers are equipped with the necessary skills for an AI-driven economy.
Cockett stressed the importance of government and employer focus on long-term workforce planning and skill development to help individuals effectively utilize AI in their roles or transition to alternative occupations as AI integration expands. He highlighted the challenges faced by job seekers due to slower hiring rates post-employment cost escalation and potential hindrances posed by the Employment Rights Bill for employers considering less experienced individuals with greater developmental requirements.
Amid these developments, the UK’s unemployment rate reached 5% in the three months leading up to September, up from 4.8% in the preceding three months. The Office for National Statistics (ONS) reported this as the highest level since August 2016, excluding distortions seen during the COVID-19 pandemic.
For more detailed insights, the full CIPD report can be accessed directly.