More than a quarter of large businesses expect to cut headcount within the next year due to the impact of artificial intelligence, with junior roles most likely to be axed, according to a survey of UK employers, SİA informs referring to the Financial Times.
The Chartered Institute for Personnel and Development said 26 percent of large private sector organisations and 20 percent of public sector employers expected to have fewer staff in the next 12 months because of AI, compared with just 9 percent of small and medium-sized enterprises.
"While SMEs appear to be doing more with the same number of people, large private sector employers appear to be streamlining," the body for HR professionals said. Among employers who said AI would reduce their headcount, a quarter expected a decrease of more than 10 percent, it added.
CIPD's research showed the starkest change in the financial services sector, where 37 percent of employers expected AI to cut jobs, followed by IT, where 26 percent expected headcount to fall. The share in the legal, accounting and consultancy sector was 24 percent.
The survey, published on Monday, will reinforce fears over the effect of AI technologies on young people starting their career, as employers said junior professional and managerial roles, along with clerical and administrative positions, were most likely to be affected.
James Cockett, senior labour market economist at the CIPD, said that while AI held "great potential for improving productivity . . . it also risks leaving many people behind."
There is no conclusive evidence as yet that AI is killing graduate jobs: in the US, where rollout of the new technologies is furthest ahead, unemployment has risen much more sharply among recent labour market entrants without a college education than for graduates.
But younger workers in the UK are already suffering from a prolonged slump in hiring, and from outright job cuts in sectors such as retail and hospitality where they often start their careers. Those sectors were hit hard by increased taxes on wages. The CIPD found employers' hiring intentions were stuck at their lowest on record, outside the pandemic.
The net employment balance in its survey - the difference between employers expecting to increase staffing and those expecting to cut jobs - was unchanged at +9. Official data shows that almost 950,000 people aged 16 to 24 - or 12.8 percent - were not in education, training or employment in the second quarter of 2025. At the end of 2019, the rate was 10.7 percent.
This increase has been driven by rising numbers of young people who say ill health - in particular, mental ill health - prevents them working.
The government said on Sunday that the former Labour health secretary Alan Milburn would lead an independent investigation of why so many people were falling out of the workforce before their careers had begun. The review is due to conclude next summer.
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