Is AI permanently changing the job market?

Maddy Laing • November 24, 2024

Is AI permanently changing the job market?

Artificial intelligence (AI) is transforming industries across the globe, and the UK is no exception. With rapid advancements in AI, the job market is facing both challenges and opportunities as businesses adapt to these new technologies. According to a recent survey by TeamViewer, while 74% of UK executives believe AI will significantly boost productivity by automating tasks and streamlining workflows, only 10% of businesses have fully implemented generative AI, with 69% of top business leaders making it a priority for 2025. As AI continues to grow, it is essential to understand how these changes are reshaping employment across different fields.

Certain industries, such as finance, healthcare, and retail, are seeing significant changes due to AI integration. In finance, AI is being used for algorithmic trading, fraud detection, and even powering customer service chatbots. In healthcare, AI is playing a crucial role in diagnostics and predictive analytics, helping improve patient outcomes. Meanwhile, in retail, AI is enhancing personalised marketing and inventory management. Despite these improvements, there are growing concerns about job displacement and the skills required to thrive in an AI-driven world.

The potential impact of AI on employment is not limited to specific sectors; it affects the entire workforce. While AI can handle repetitive and data-driven tasks, it also requires workers to adapt by developing new skills. Many roles that are based on routine processes are at risk of automation, but AI also creates opportunities for new job categories, particularly in areas like data science, machine learning, and AI ethics. This dual effect makes it crucial for workers to focus on upskilling and reskilling to stay relevant in an AI-influenced job market.

“AI has really changed the job landscape.”

During a recent UK Market Update, Managing Director Liz Jones, and Senior Recruitment Consultant Maddy Laing, discussed the impact of AI on the job market and how it has changed employment dynamics across various sectors. The conversation highlighted both the benefits and the challenges posed by the rise of AI in the workplace.

Maddy Laing shared how AI has made a significant impact on industries, noting, "AI has really changed the job landscape. It's taking over repetitive tasks and streamlining workflows, bringing more data-driven decisions into play across different industries." She elaborated on how finance, healthcare, and retail have all benefited from AI advancements. In finance, for instance, AI is used for algorithmic trading and fraud detection, while in healthcare, it assists with diagnostics and monitoring patients.

However, the discussion also covered the potential job losses resulting from increased automation. Maddy explained, "Definitely jobs have been replaced, especially those that involve more repetitive or routine tasks. But at the same time, AI has opened up new opportunities and huge areas for development, like roles for data scientists, machine learning engineers, and even AI ethics specialists." This sentiment was echoed by Liz, who highlighted how the manufacturing sector, in particular, has faced job cuts due to automation, whereas areas like healthcare and IT are growing rapidly as a result of AI integration.

Liz Jones added that Brexit and the COVID-19 pandemic have played a role in reshaping the job market, with AI acting as both a disruptor and an enabler. "It's not just about automation or job displacement, it's about creating a workforce where AI works in conjunction with us," she said. The idea of augmented roles, where employees work alongside AI, is a key trend that both experts believe will continue to grow. This shift allows workers to focus more on strategic thinking, creativity, and forward planning while AI handles more routine and data-heavy tasks.

Maddy also emphasised the importance of adapting and upskilling in an AI-driven job market. "The AI wave is pushing employers and employees to learn new skills," she noted. "Data literacy, machine learning basics, and understanding AI are becoming crucial skills. At the same time, problem-solving, critical thinking, and adaptability are more important than ever." As businesses increasingly adopt AI, the demand for hybrid roles—those that combine technical skills with soft skills—is on the rise. This trend will require job seekers to be more versatile and prepared to work with AI tools.

The conversation concluded on a positive note, with both Liz and Maddy agreeing that AI's impact on employment will ultimately create new opportunities. "AI is fundamentally reshaping the employment landscape," Liz said. "It's about embracing change, learning, and development. AI is just the latest evolution, and it's going to be a big enhancement to the way we work."

Preparing for an AI-Driven Future: Key Strategies

To successfully navigate the challenges and opportunities presented by AI, businesses and workers must take proactive steps to adapt to the changing job market. Upskilling and reskilling are crucial for ensuring that employees have the skills needed to thrive in an AI-driven environment. Investing in digital literacy, data analysis, and machine learning will help workers remain relevant and competitive.

Employers should also focus on creating roles that encourage collaboration between human employees and AI systems. Hybrid roles that combine technical proficiency with creative and strategic thinking will be vital in the future workforce. By embracing AI as a tool to augment, rather than replace, human skills, businesses can create a more efficient and innovative working environment.

Additionally, fostering a culture of continuous learning is essential. Employers should support their workforce by offering training and development programmes that keep pace with technological advancements. Workers who are open to learning and adapting will be better positioned to take advantage of the new opportunities AI creates.

Finally, it is important to address the ethical implications of AI in the workplace. As AI becomes more integrated, businesses must consider how to use these technologies responsibly, ensuring transparency, fairness, and respect for employees. By building a workforce that is comfortable with AI and understands its potential and limitations, organisations can create a positive and productive environment that maximises the benefits of AI while mitigating its risks.

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Why British workers struggle to switch off despite leading in workplace trust

By Liz Jones • September 8, 2025

A workplace culture writer specialising in employee wellbeing, flexible working trends, and HR innovation. Helping organisations create healthier, more productive work environments through trusted insights and data-driven content.

UK Labour Market Holds Strong Despite Slower Pay Growth

By Liz Jones • August 27, 2025

The latest data shows that the UK labour market continues to perform steadily in 2025, with employment levels holding firm and job vacancies remaining historically high. While pay growth has slowed slightly, overall workforce activity remains strong, supported by high participation and resilient hiring demand. Liz Jones, Recruitment Director at people2people UK, says that this steady picture aligns closely with trends identified in the firm’s 2025 UK Market Report. “We are still seeing a healthy labour market,” she explains. “Employment is growing, and job openings remain strong, especially in sectors such as healthcare, logistics and professional services.” Employment Rate Rises, Unemployment Falls According to the July 2025 bulletin, the UK employment rate rose to 76.4 percent, the highest in over a year. The unemployment rate dropped to 3.7 percent, a level not seen since early 2020. This marks continued improvement in labour force participation following a volatile period during the pandemic recovery. Jones notes that this trend is being felt across multiple industries. "Businesses are rebuilding workforces and candidates are returning to the labour market," she says. "It is encouraging to see stronger engagement from both employers and jobseekers." Pay Growth Slows but Remains Positive One notable shift in the July update is a softening of pay growth. Annual wage increases for the period stood at 5.2 percent, down from 6.1 percent earlier in the year. This reflects a more balanced economic climate as inflation eases and employers stabilise budgets. “While pay growth is slowing, it is still above historical averages,” Jones comments. “Employers are adjusting to cost pressures, but most remain committed to offering competitive salaries to retain talent.” Vacancies Stay High, Reflecting Continued Demand Despite slower wage growth, the number of job vacancies remains elevated. Sectors such as care, education, and IT continue to post consistent hiring demand, with temporary and contract roles seeing a modest rise in 2025. “Our market report shows that employers are being more selective, but they are still hiring,” says Jones. “The competition for skilled talent is keeping demand steady, especially for roles that require specialist expertise or qualifications.” Implications for Employers With a stable employment base and slower but sustained pay growth, Jones suggests that now is a critical time for companies to refine their recruitment strategies. She recommends: Reviewing salary benchmarking to stay competitive in priority roles Streamlining recruitment processes to reduce vacancy durations Investing in retention through training and internal mobility Enhancing employer branding to attract passive candidates “The market is not slowing down,” she says. “It is settling. Employers who respond with clarity and flexibility will continue to secure great talent.” Summary The July 2025 labour market update confirms a period of stability for the UK workforce. While pay increases are moderating, employment levels remain high and hiring activity continues across core sectors. For recruitment leaders, this is a time to invest in strategy, not to pull back. With the right planning, employers can navigate this market with confidence.

Return-to-Office Pressure Drives Resentment

By Liz Jones • August 20, 2025

Pressure to Return to the Office Is Driving Resentment Among UK Workers As flexible working continues to define the future of employment, new findings suggest the UK may be facing a growing disconnect between employer expectations and employee preferences. According to people2people UK’s 2025 Market Report, more than half of workers feel increasing pressure to spend additional time in the office, a shift that is impacting engagement and retention across multiple sectors. Liz Jones, Recruitment Director at people2people UK, says that rigid workplace policies are now a leading contributor to candidate reluctance and employee churn. "Our data shows that 54 percent of UK employees feel pushed to return to the office more than they want to," she explains. "This pressure is not just inconvenient. It is reshaping how people view their current roles and future opportunities." Where the Pressure Comes From The 2025 Market Report found that much of the drive to return to the office stems from top leadership, with executive teams leading the call for more on-site presence. This push is not always aligned with performance metrics or employee feedback. "This is not about output or productivity," says Jones. "It is about outdated assumptions. Leadership often equates visibility with value, but that mindset is increasingly out of step with how modern teams work best." The mismatch between executive expectations and employee needs is contributing to declining morale, particularly in office-based roles that could easily operate on a hybrid basis. Flexibility Still Matters Despite the push to increase office attendance, flexibility remains a top priority for candidates and employees. The Market Report confirms that roles offering flexible working continue to receive more applications, fill faster, and maintain lower turnover rates. "Flexibility is not a temporary trend," Jones adds. "It is now a standard part of what professionals expect. Candidates are telling us clearly that how they work matters just as much as where or for whom." The data reveals that teams which embrace flexible models tend to report stronger engagement, better collaboration, and improved retention outcomes, especially in sectors such as tech, finance, and professional services. What Employers Should Do To stay competitive, Jones advises that employers need to reevaluate their return-to-office strategies with both data and empathy in mind. people2people UK recommends: Involving employees in setting attendance expectations Tailoring policies by role, function, and team needs Communicating the reasons for on-site requirements clearly and consistently Measuring the impact of attendance policies on productivity and engagement "One-size-fits-all approaches no longer work," Jones notes. "Companies that listen to their teams and create flexibility within structure will outperform those that rely on top-down mandates." Looking Ahead As the labour market continues to evolve, the ability to offer meaningful flexibility will be a deciding factor in who attracts and retains top talent. The 2025 UK Market Report shows a strong correlation between adaptive working policies and long-term business resilience. "Employers have a choice," Jones concludes. "They can lead with trust and flexibility, or risk losing great people to those who do."

Candidate Availability Is Rising at the Fastest Rate in Over Four Years

By Liz Jones • August 13, 2025

Candidate availability in the UK labour market has increased at the fastest rate since December 2020. Our 2025 people2people UK Market Report highlights the same trend that has been flagged, with the volume of candidates rising sharply due to redundancies and subdued hiring activity. Market Supply Meets Reduced Demand Liz Jones at people2people UK notes that the shift represents a clear imbalance. "Candidate supply is surging as job openings contract," she commented, in line with findings from our 2025 market report. "More people are actively looking but there are fewer roles available. This impacts how recruiters and HR managers plan talent attraction and engagement strategies." Salary Impact and Recruitment Strategy The increase in candidate availability has also influenced pay trends. Salary growth has remained modest due to reduced hiring budgets and greater competition for fewer active roles. "With more talent available and slower demand from employers, organisations are better positioned to be selective," Liz shared from our analysis. "This is a chance to focus on quality of hire rather than speed of hire." What This Means for Employers In a market with rising candidate supply and fewer opportunities, jobseekers become more discerning. They are assessing potential employers based on culture, flexibility, development opportunities, and brand values. Liz Jones advises that businesses should: Clearly articulate what makes them stand out to candidates Review their employer value proposition against market expectations Consider investing in candidate experience platforms and employer branding Maintain recruitment agility so they can swiftly fill roles when market conditions improve Preparing for Market Recovery Our 2025 report shows that while hiring activity remains subdued, there are early signs of resilience in sectors such as engineering, logistics and healthcare. "This market may feel cautious," Liz explains, "but there are pockets of opportunity. Organisations that maintain readiness will be first to tap into recovering sectors and talent pools."

Impacts of the Lack of Flexibility in the Workplace

By Liz Jones • August 6, 2025

Flexible working is no longer a perk. It is a priority. Our people2people 2025 Market Report confirms that a lack of flexibility is pushing a significant portion of the workforce to look elsewhere. Employers who fail to adapt are already seeing the consequences. According to our research, more than one million people in the UK left their jobs in the last 12 months due to rigid working conditions. That is nearly three percent of the workforce walking out of roles that did not meet their expectations for flexibility. This shift is not limited to remote working. It also includes flexible hours, part-time arrangements and compressed working weeks. Employees are looking for control over when and how they work. A Disconnect Between Policy and Preference While flexible work continues to rank high on the list of job seeker priorities, our data shows that more than half of employers have increased expectations for in office attendance in 2025. This rise is driven primarily by leadership mandates rather than operational need. "There is a growing disconnect between leadership expectations and employee preferences," I said while reviewing our report findings. "The result is avoidable turnover and a widening talent gap in key sectors." This trend is most visible in professional services, finance and tech roles where hybrid work is both possible and preferred. Employers insisting on a return to pre 2020 working patterns are facing greater difficulty attracting and retaining skilled candidates. Flexibility Strengthens Recruitment Outcomes The business case for flexibility is clear. Our report found that job adverts which include flexible options receive up to 40 percent more applications and fill faster. These roles also report lower early-stage attrition, suggesting a better match between employer and candidate expectations. "Flexibility improves both the volume and quality of applicants," Liz Jones noted. "It gives companies an edge in a market where top talent has choices." Candidates now assess flexibility before they consider salary, commute or even job title. Those who have experienced hybrid or remote work environments are unlikely to go back to rigid models without significant trade offs. What Employers Can Do Now The solution is not a one-size-fits-all model. Instead, companies should aim to provide structure around flexibility that meets both business and employee needs. Based on our research, I recommend: Making flexibility a default part of job design and recruitment messaging Offering a mix of remote, hybrid and flexible hour options depending on role Providing training for managers to lead distributed teams effectively Tracking turnover data linked to flexible work policies to spot early warning signs The expectations of the workforce have changed. Flexibility is now a deciding factor for candidates and a retention tool for current employees. Firms that ignore these expectations will continue to lose talent. Those that embrace structured flexibility will gain a clear advantage in attraction, engagement and long-term workforce planning.

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