[UK] Entry level jobs have plummeted since ChatGPT

New research has found that the number of entry level jobs - comprising junior positions, graduate roles and apprenticeships - has fallen by almost a third (31.9 per cent) since ChatGPT launched, MSN reports.

Job search site Adzuna conducted the research, which revealed that vacancies for graduates had fallen to their lowest level since the pandemic. Entry level jobs now only account for a quarter of the total market, down from 28.9 per cent in 2022.

Replacing entry-level roles with AI to conduct tasks forms part of this picture. However, rising labour costs, including increased National Insurance contributions, are also a factor. Rising salaries reportedly outstripped inflation until recently.

ChatGPT launched in November 2022, with several subsequent versions, heralding a new era of technological transformation. Its parent company is now worth £219bn, making it bigger than any public listed company on the London Stock Exchange.

James Neave - head of data science at Adzuna - said, “If you can reduce your hiring at the entry level, that’s just going to increase your efficiency and improve cost savings. The NIC contributions were just a pure financial burden,” adding that the upcoming Employment Rights Bill could also be a dissuading factor.

“If you’re an employer, it all adds to this list of reasons why you shouldn’t hire people,” Mr Neave said.

Several of the UK’s larger firms have reportedly announced plans to significantly reduce headcounts, as part of cost-cutting measures. AI is slated to take on much of the work.

BT is one such firm. CEO Allison Kirkby stated that initial plans to reduce its workforce by 40,000 to 50,000 employees by 2030 didn’t “reflect the full potential of AI”, meaning even more job losses could follow.

Amazon also said job losses were on the way as a result of utilising AI in wider-reaching roles. It has yet to specify how many or when.

Source: MSN

(Link and quotes via original reporting)

New research has found that the number of entry level jobs - comprising junior positions, graduate roles and apprenticeships - has fallen by almost a third (31.9 per cent) since ChatGPT launched, MSN reports.

Job search site Adzuna conducted the research, which revealed that vacancies for graduates had fallen to their lowest level since the pandemic. Entry level jobs now only account for a quarter of the total market, down from 28.9 per cent in 2022.

Replacing entry-level roles with AI to conduct tasks forms part of this picture. However, rising labour costs, including increased National Insurance contributions, are also a factor. Rising salaries reportedly outstripped inflation until recently.

ChatGPT launched in November 2022, with several subsequent versions, heralding a new era of technological transformation. Its parent company is now worth £219bn, making it bigger than any public listed company on the London Stock Exchange.

James Neave - head of data science at Adzuna - said, “If you can reduce your hiring at the entry level, that’s just going to increase your efficiency and improve cost savings. The NIC contributions were just a pure financial burden,” adding that the upcoming Employment Rights Bill could also be a dissuading factor.

“If you’re an employer, it all adds to this list of reasons why you shouldn’t hire people,” Mr Neave said.

Several of the UK’s larger firms have reportedly announced plans to significantly reduce headcounts, as part of cost-cutting measures. AI is slated to take on much of the work.

BT is one such firm. CEO Allison Kirkby stated that initial plans to reduce its workforce by 40,000 to 50,000 employees by 2030 didn’t “reflect the full potential of AI”, meaning even more job losses could follow.

Amazon also said job losses were on the way as a result of utilising AI in wider-reaching roles. It has yet to specify how many or when.

Source: MSN

(Link and quotes via original reporting)