Key Facts
• UK companies are pausing hiring for roles impacted by AI adoption.
• Online job postings dropped 31% in the three months to May 2025 compared to 2022.
• Tech and finance white-collar jobs saw a 38% decline in job postings.
• Roles partially replaceable by AI, like programmers and consultants, fell by over 50% in three years.
• Data science and analytics jobs referencing AI dropped 50% from pre-pandemic levels.
• Real estate and education jobs, with minimal AI mentions, saw increased hiring.
• High interest rates and slow economic growth drive cost-cutting measures in the UK.
• McKinsey highlights productivity expectations as a factor in hiring freezes.
• Pavel Adrian notes AI’s significant presence in job descriptions for math-related fields.
Summary
The UK job market is experiencing a notable decline in hiring, particularly in tech and finance sectors, as companies adopt AI technologies. McKinsey reports a 31% drop in online job postings from 2022 to 2025, with tech and finance roles seeing a sharper 38% decline. Jobs partially replaceable by AI, such as programming and consulting, have decreased by over 50% in three years. Data science roles referencing AI have also halved since pre-pandemic levels. Meanwhile, sectors like real estate and education, with minimal AI integration, have seen job growth. High interest rates and economic slowdown are prompting cost-cutting, with companies revising workforce strategies despite uncertain futures. Experts highlight the dual impact of AI-driven productivity expectations and reduced hiring in reshaping the labor market.
