Amid an overall contraction in the UK job market, demand for AI-skilled professionals has reached a record high. Since the beginning of 2026, the number of job vacancies in the country has decreased by 11%, while the share of listings mentioning artificial intelligence has risen to 9.4%—the highest on record, according to Bloomberg, citing data from job search service Indeed.
Neural networks and AI-based tools are increasingly featured in job descriptions in HR, marketing, finance, and management sectors—areas where the overall number of job offers is declining. Experts have termed this phenomenon a “two-speed job market” within the knowledge economy: employers are hiring less but are much more actively seeking candidates with applied AI skills.
Job seekers are also confirming the trend: the number of searches for such positions has increased sevenfold since the launch of ChatGPT in 2022.
Hiring Grows Only in Specific Segments
According to Indeed, the activity of UK employers is 32% below the level of February 2020, during the COVID-19 pandemic. In contrast, the number of vacancies in Europe is 5% above pre-crisis levels, and in the US, it is 2% higher.
At the same time, the rate of proposed salaries in the UK has slowed to 3.9%, marking a four-year low.
The decline has affected most industries—from professional services to hospitality and retail. Growth in job vacancies is observed only in specific niches: technology, engineering, and healthcare.
Experts noted that the number of vacancies for software developers jumped by 14%. This growth was mainly driven by offers for experienced professionals and positions directly related to artificial intelligence.
Young Professionals Lose Entry Points
As of July 10, the number of vacancies for graduates decreased by 7% year-on-year—the lowest for this period since 2020. Offers for temporary and seasonal employment also showed the worst result in the past four years.
According to Indeed’s senior economist Jack Kennedy, pressure on the UK labor market is becoming systemic: hiring reductions cover almost all sectors, and wage growth is losing momentum. Graduates and young job seekers are suffering the most, with fewer opportunities to secure their first job.
The situation extends beyond hiring statistics: over a million Britons aged 16 to 24 are neither studying nor working. Among those aged 18 to 24, the share of such young people is 15.8%—three times higher than in the Netherlands, whose model the government looks to.
On July 28, Prime Minister Andy Burnham announced the launch of new technical education pathways. From age 14, students in England will be able to combine core subjects with vocational training linked to local job vacancies, with programs developed by local authorities, schools, colleges, and employers. Nationwide implementation is planned for 2028.
Market Segmentation Beyond the UK
Similar conclusions were previously reached by PwC specialists, who analyzed over a billion job listings from 27 countries. In the Global AI Jobs Barometer report from June 15, they noted that AI is causing the labor market to split into two tiers:
- Professions where technology handles routine tasks, requiring employees to have experience and decision-making skills. This includes radiologists and recruiters. Here, vacancies have doubled, and salaries are growing 42% faster.
- Professions where AI simplifies work to a level accessible without special training, such as IT support managers and medical secretaries. In this group, the increase is noticeably more modest.
Demand for specialists with AI-specific skills is increasing eight times faster than the overall market (+69% versus +9%). The salary premium for such skills has jumped to 62% (up from 57% a year ago).
PwC also analyzed 2.4 million entry-level vacancies in the US. Among positions most affected by automation, requirements for leadership, creativity, and communication—qualities traditionally associated with more experienced employees—are seven times more common. Since 2019, the number of such offers has increased by 35%, while other entry-level vacancies have decreased by 10%.
In June, TechCrunch described AI as a convenient excuse for layoffs. Since the beginning of the year, employers have already mentioned the technology in connection with 87,714 job cuts.
