job loss

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.