A recent study conducted by the Chartered Institute of Personnel and Development (CIPD) has identified the job roles most susceptible to being replaced by artificial intelligence (AI) within the upcoming year. The research, based on responses from over 2,000 employers regarding their hiring, redundancy, and compensation strategies for the next year, indicates that 17% of employers anticipate a reduction in their workforce due to AI. Among them, 62% believe that roles in clerical, junior managerial, professional, or administrative positions are most likely to be impacted.
The survey also revealed variations across different sectors, with 26% of employers in large private firms expecting a reduction in their workforce, compared to 17% in the private sector and 20% in the public sector. Additionally, a quarter of those anticipating job cuts foresee losing more than 10% of their workforce, while 22% of employers plan to make redundancies in the last quarter of 2025. However, a majority (61%) are also planning to recruit for new positions during the same period.
James Cockett, a senior labor market economist at CIPD, emphasized the transformative potential of AI in enhancing productivity and performance but cautioned about the risks of job displacement. He stressed the need for a national initiative to retrain and upskill individuals across different career stages to adapt to an AI-driven economy effectively. Cockett highlighted the importance of developing the Growth and Skills Levy in consultation with employers to equip workers with the necessary skills for the changing job landscape.
The impact of these trends is evident in the rising unemployment rate in the UK, reaching 5% in the three months up to September, compared to 4.8% in the preceding three months. The Office for National Statistics (ONS) noted that this level is the highest since August 2016, excluding the distorted figures seen during the pandemic.
For further insights, the full report from CIPD can be accessed through their website.
