Robert Walters

Artificial intelligence is creating a two-speed UK labour market, with employers hiring experienced technology workers while cutting vacancies across retail, manufacturing and several white-collar professions, Bloomberg reported, citing data from Indeed. British companies posted about 10% fewer jobs in July than in January 2025, reflecting higher employment costs and uncertainty across the wider economy. The overall decline concealed sharp differences between occupations, with software-development vacancies rising 14% and much of the growth concentrated in senior positions and roles directly connected to AI. Hiring has also remained comparatively resilient in information technology and engineering, where AI tools can take over routine work and increase the productivity of experienced employees. Vacancies in retail and manufacturing have fallen by double digits, and white-collar professions more exposed to AI substitution, including accounting and marketing, have also suffered significant declines.