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AI Could Cost the UK 3 Million Jobs By 2035

Tom Quinn

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AI job loss UK
Almost four million UK workers are already falling short in essential skills needed for jobs of the future, a new report has warned.

Up to three million UK jobs could disappear within the next decade, largely as a result of AI and automation, according to a new report from the National Foundation for Educational Research (NFER).

The charity’s latest Skills Imperative study warns that ‘at-risk’ occupations, those already vulnerable to AI, such as admin, secretarial, and customer service, are shrinking far faster than expected, with overall losses likely to outstrip previous predictions.

This is leading to growing concern among the workforce that technology will soon outpace workers’ ability to keep up with change, with a YouGov poll commissioned by the programme earlier this year finding that 53% of UK workers expect automation or AI to impact their role within the next ten years.

According to the NFER report, fixing this will require major reforms to lifelong learning to prepare people for a labour market “drastically altered by technology”, with collective action urgently needed to help young people starting out and those already in work.

Following a five-year-long programme and eight working papers designed to identify what the UK jobs market will look like by 2035, the NFER pinpointed six ‘Essential Employment Skills’ (EES) that candidates will need most as AI takes a tighter hold.

Among the most vital soft skills the report identified are communication, teamwork, problem‑solving, organisation, planning and prioritisation, creativity, and information literacy, with the report stressing that these qualities are likely to become increasingly important as they complement workplace technology. 

However, the NFER warns that shortages in these crucial skills are taking hold, with analysis around 3.7 million workers are falling short in these six essential areas, a figure the charity said could climb to 7 million by 2035 if decisive action is not taken.

The NFER study predicts that while the total number of jobs will grow up to 2035, most of that will be in professional and associate professional occupations such as science, engineering and legal roles, which heavily utilise the six EES. 

Meanwhile, most mid- and low-skilled jobs are forecast to decline at an increasing pace, leading to many people being out of work, and potentially tanking the UK’s fragile economy.


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Key recommendations outlined by the NFER study include widening access to quality early years education for disadvantaged families and embedding essential skills development in schools from an earlier age. 

The report also calls for a major overhaul of the adult skills system, with more funding to break down barriers to retraining, and for HR practices that allow employers to better assess and develop the talents of their workforce.

“The time has come to tackle this critical challenge head-on, and we all have a role to play,” said Jude Hillary, the NFER’s co-head of UK policy and practice.

“Meeting projected skills shortages means a collective response from government, employers and across the education and skills systems.  

“We need to strengthen support in the early years, tackle inequalities in schools, strengthen pathways into growing jobs, and rebuild the adult skills system to deliver growth that benefits everyone.”

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Tom Quinn

Staff Writer, DIGIT

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