A recent study conducted by the Chartered Institute of Personnel and Development (CIPD) has unveiled the occupations most vulnerable to being replaced by artificial intelligence (AI) in the upcoming year. The research involved gathering input from more than 2,000 employers regarding their recruitment, layoff, and salary strategies for the following year.
According to the findings, around 17% of employers anticipate a reduction in their workforce due to AI in the next year. Among them, 62% believe that roles in clerical, junior managerial, professional, or administrative positions are at the highest risk of being displaced. In larger private sector organizations, 26% of employers foresee a decrease in their workforce, compared to 17% in the private sector and 20% in the public sector.
Among employers expecting staff reductions, a quarter anticipate losing over 10% of their workforce. While 22% of employers intend to make staff redundant in the final quarter of 2025, a majority of 61% plan to hire for new positions.
James Cockett, a senior labor market economist at CIPD, emphasized the transformative impact of AI on work dynamics and the need for a national effort to retrain and upskill individuals across all career stages. He stressed the importance of developing skills tailored for an AI-driven economy through initiatives like the Growth and Skills Levy, with input from employers to ensure workforce readiness.
The increased unemployment rate in the UK, reaching 5% in the three months ending September, as reported by the Office for National Statistics, underscores the need for strategic workforce planning and skill investment to navigate the evolving job landscape. The report also highlights potential challenges for job seekers due to rising employment costs and proposed legislation like the Employment Rights Bill.
For more details, the full CIPD report is available for reference.