Quarter of UK jobs face high exposure to Generative AI
Thu 14 Dec 2023
Generative AI (GenAI) is increasingly shaping the UK labour market landscape, as indicated in the 2024 UK Jobs & Hiring Trends Report by Indeed.
The report revealed that 24% of UK jobs face the highest level of potential exposure to GenAI, which can perform a significant portion of the skills required for these jobs.
The report also highlighted a surge in job postings related to the creation and use of Generative AI tools, with the share of UK job postings mentioning terms related to Generative AI standing at 0.05% as of the end of October, a twenty-six fold increase since the start of the year.
Jack Kennedy, Senior UK Economist at Indeed, said: “Generative AI is having an impact on the UK labour market. The data shows that while Generative AI can learn to do some tasks reasonably well, it is unlikely to fully replace many jobs. Instead, as the technology continues to learn skills associated with certain jobs, it will augment or transform some more than others.”
UK Labour Market Cools Off
In the broader context of the UK labour market, the report noted a gradual cooling amid challenging economic conditions.
Job postings on Indeed have decreased by 30% from their May 2022 peak, but are still 9% above February 2020 levels. This indicates a more robust labour market compared to the pre-pandemic era.
Despite economic headwinds, employer intentions to reduce staff have remained limited, potentially due to past hiring challenges. Jobseeker confidence is also holding steady, with 43% of active job seekers in September feeling confident about finding a new job in the next month.
Wage growth, a key determinant for interest rates, appears to have peaked but is expected to remain persistent. The Indeed Wage Tracker showed a dip in posted wage growth to 7%, but the UK still experiences stronger wage growth pressures than the US and Euro Area.
For jobseekers looking to obtain a pay rise, a high and rising proportion of UK job postings include salary information. The share stands at 75% as of October.
Wages may not rise as fast next year as they have this year but, in a still-tight labour market, employers may find it necessary to advertise what they are paying to attract talent ahead of their competition.
Flexibility remains a key focus in the labour market, with the share of job postings mentioning remote or hybrid terms slightly dipping but still remaining significantly higher than pre-pandemic levels. The interest in remote and hybrid work continues to be high among job seekers.
Employers looking to recruit for in-person roles can offer other forms of flexibility. The share of job postings mentioning a four-day work week arrangements has been rising, though at 0.8%, remains a niche offering.