UK Job market Faces 1980s-Style ’Hollowing-Out’ Amid Tax Hikes and AI Disruption, Warns reed CEO
LONDON - The UK job market is experiencing a prolonged downturn, with vacancies declining for three consecutive years – a phenomenon Reed CEO James Reed says he has “never seen in [his] 49 year career.” The slump is being driven by a confluence of factors including the rise of artificial intelligence, and government policy decisions such as increases to employer’s National Insurance, which Reed warned would negatively impact hiring.
Reed expressed concern that the current situation represents a structural shift, potentially leading to a “hollowing-out of jobs” similar to the decline in blue-collar industries during the 1980s, but this time impacting white-collar workers. “Official figures show we have now had declining vacancies in the economy for three years,” Reed stated. Despite some positive signs in sectors like social care and hospitality, and employer/jobseeker optimism for future betterment, he emphasized the need for “carefully targeted measures to support jobs.” To that end, Reed announced the company is offering a million free job postings on reed.co.uk.
A recent Reed survey corroborates the challenging landscape, revealing that two in five (41%) jobseekers are competing for fewer vacancies. The survey, of over 2,000 individuals, also found that 39% believe there are too many applicants for available roles, and a similar percentage (39%) cite insufficient pay relative to the rising cost of living.
job security is a key concern for many, with 57% of respondents valuing it over other factors, and 51% expressing anxiety about the overall state of the job market. While only 44% of entry-level and graduate jobseekers are optimistic, a majority (61%) anticipate an eventual improvement, with 26% planning to actively seek new opportunities when conditions change.