{"id":86521,"date":"2025-10-08T07:04:02","date_gmt":"2025-10-08T06:04:02","guid":{"rendered":"https:\/\/www.taxresearch.org.uk\/Blog\/?p=86521"},"modified":"2025-10-08T07:04:02","modified_gmt":"2025-10-08T06:04:02","slug":"has-ai-broken-the-job-market","status":"publish","type":"post","link":"https:\/\/www.taxresearch.org.uk\/Blog\/2025\/10\/08\/has-ai-broken-the-job-market\/","title":{"rendered":"Has AI broken the job market?"},"content":{"rendered":"<p class=\"p1\">AI is reshaping work faster than universities, employers, or governments can adapt.<\/p>\n<p class=\"p1\">In this intergenerational conversation, I talk with my son <span class=\"s1\">Tom about <\/span>how artificial intelligence has destroyed the old promise: <i>work hard, get good grades, and you\u2019ll get a good job.<\/i><i><\/i><\/p>\n<p class=\"p1\">From \u201cghost jobs\u201d to algorithmic hiring and a two-tier workforce, this video explores what happens when AI changes everything \u2014 and how young people can still shape their future.<\/p>\n<p><iframe loading=\"lazy\" width=\"560\" height=\"315\" src=\"https:\/\/www.youtube.com\/embed\/tKw-U_fMHbs?si=KRo6UOOnw26WALz7\" title=\"YouTube video player\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p>This is the audio version:<\/p>\n<p><iframe title=\"Has AI broken the job market?\" allowtransparency=\"true\" height=\"150\" width=\"100%\" style=\"border: none; min-width: min(100%, 430px);height:150px;\" scrolling=\"no\" data-name=\"pb-iframe-player\" src=\"https:\/\/www.podbean.com\/player-v2\/?i=gdruf-19876a3-pb&from=pb6admin&share=1&download=1&rtl=0&fonts=Arial&skin=f6f6f6&font-color=auto&logo_link=episode_page&btn-skin=c73a3a\" loading=\"lazy\"><\/iframe><\/p>\n<p>This is the transcript:<\/p>\n<hr \/>\n<p>I closed this week\u2019s Funding the Future podcast by saying:<\/p>\n<blockquote><p>We are living in a period of change. You are going to live through a lot more change than I\u2019ve seen in my career.<\/p><\/blockquote>\n<p>The conversation that I was concluding was with my son, Tom, who, for the past eighteen months, has been behind the camera for every YouTube video we\u2019ve made. For the first time, he came out from behind the lens to talk about something that directly affects his generation: how artificial intelligence (AI) is reshaping employment, and what that means for young people trying to enter the world of work.<\/p>\n<p>The conversation ranged from personal experience to hard data, and from graduate disillusionment to the new inequalities of AI. What emerged was a sobering, and at times disturbing, portrait of a labour market being transformed faster than most people \u2014 including employers \u2014 can comprehend.<\/p>\n<p><strong>The AI revolution without a plan<\/strong><\/p>\n<p>I began by noting that many businesses are rushing into AI adoption out of FOMO \u2014 the 'fear of missing out' \u2014 rather than as a consequence of having any coherent strategy. Few know why they might use it for, or with what consequences. Yet, despite this confusion, the impact on real people, and in particular young people, is already enormous.<\/p>\n<p>Tom\u2019s observation was blunt: young people, students and graduates are entering a \u201cconfusing situation\u201d in which they don\u2019t know what skills to acquire or what jobs will even exist.<\/p>\n<p>When he started university in 2020, AI was a distant rumour. Four years later, it dominates everything in the world of work he faces. He likened it to the spread of smartphones; initially novel, then suddenly everywhere.<\/p>\n<p>The result is a generation being told to invest in education without any clarity about where it will lead. That uncertainty is spreading fast.<\/p>\n<p><strong>Graduates are being squeezed out<\/strong><\/p>\n<p>The graduate employment system, as Tom described, has become dehumanised and alienating. Job applications are filtered through AI-driven forms that strip out personality and force applicants to re-enter every detail manually \u2014 \u201cthe most boring thing in the world,\u201d he said. After hours of aptitude tests and algorithmic vetting, most applicants receive automated rejections, often with no feedback.<\/p>\n<p>The scale of the mismatch is startling. A survey by Hult International Business School found that 98% of employers said they struggled to fill vacancies, but 89% admitted they did not want to hire graduates. In short, employers complain of a skills shortage while rejecting the very people they demand that the economy produce.<\/p>\n<p>The absurdity deepens. In 2024, there were just 17,000 graduate jobs advertised in the UK, attracting 1.2 million applications, or about 70 applicants per job. Of course, many people applied for many jobs, but it is still the case that universities continue to expand their intake, producing another 465,000 graduates each year. Whatever the data underpinning the ratios, the arithmetic simply doesn\u2019t work.<\/p>\n<p>No wonder Tom concluded: \u201cThe old idea \u2014 get good grades, go to a good university, get a good job \u2014 is dead.\u201d<\/p>\n<p><strong>The rise of \u201cghost jobs\u201d<\/strong><\/p>\n<p>If that weren\u2019t demoralising enough, many of the jobs graduates do apply for turn out to be ghosts. These are vacancies that companies post without any intention of filling them, whether to collect CV data, to signal \u201cgrowth\u201d to investors, or simply to test the market.<\/p>\n<p>Tom cited data suggesting 30% of advertised positions are ghost jobs, rising to nearly 60% in some sectors. His friend applied to seven such roles, all of which remained online long after rejection letters arrived. Another firm Tom had applied to kept the same vacancy open for a year, re-advertising it every few months, but never seeming to want to actually fill it.<\/p>\n<p>The result is an economy where hope is systematically wasted. Jobseekers spend weeks applying to roles that don\u2019t exist. Companies exploit the illusion of opportunity to mine personal data or inflate their image. It\u2019s a form of corporate dishonesty \u2014 employment wash, if you like \u2014 and it leaves young people exhausted and disillusioned.<\/p>\n<p><strong>AI and the death of entry-level work<\/strong><\/p>\n<p>Tom\u2019s own field of study was accounting and finance. Yet, as he discovered, the firms that once hired thousands of trainees are now scaling back. The Big Four accountancy firms, he noted, have cut graduate recruitment by between 6% and 29% in a single year.<\/p>\n<p>Why? Because AI can already do much of the routine data work that once required human accountants. Employers are filling entry-level gaps with algorithms rather than apprentices.<\/p>\n<p>The same pattern is visible in marketing, coding, and customer service \u2014 professions now being \u201cAI-washed.\u201d As one local business owner told me, his marketing agency has effectively become a tech firm: it writes AI prompts for clients instead of campaigns. The problem, he admitted, is that \u201cif there are no juniors now, who replaces me when I retire?\u201d<\/p>\n<p>This is the new paradox of automation: short-term efficiency at the cost of long-term sustainability. If companies eliminate the bottom rung, there will be no ladder left to climb.<\/p>\n<p><strong>Learning to master the machines<\/strong><\/p>\n<p>Yet not all the news is bleak. Tom and I both use AI every day in our work \u2014 for research, structuring videos, and accelerating creative processes. Used intelligently, it saves time and sparks ideas.<\/p>\n<p>But, as we agreed, AI must be mastered, not served. The real risk is not that machines take our jobs, but that people forget how to think. Writing a good AI prompt is not like typing into Google. It\u2019s a craft requiring clarity, precision, and critical awareness \u2014 the very skills universities should be teaching.<\/p>\n<p>Yet universities, fearful of cheating and plagiarism, have mostly retreated from AI training. They are preparing students for a world that no longer exists. The Hult survey again offers insight: 94% of graduates who learned AI skills said it improved their career prospects, but few are being offered the chance to learn those skills formally.<\/p>\n<p>So, we have an education system afraid of the tools that define the modern workplace. That cannot last.<\/p>\n<p><strong>Job killer or job creator?<\/strong><\/p>\n<p>Tom\u2019s view was that AI is both: it destroys routine work but creates new opportunities for those with initiative. It can do in seconds what once took hours \u2014 from writing citations to data analysis \u2014 freeing people to focus on creativity, design, and strategy.<\/p>\n<p>But he also warned of an emerging two-tier workforce:<\/p>\n<ul>\n<li>AI users \u2014 lower-paid, task-driven, and easily replaced;<\/li>\n<li>AI designers and strategists \u2014 fewer in number, but commanding far greater influence.<\/li>\n<\/ul>\n<p>That divide, he suggested, will define his generation\u2019s inequality. Not just between rich and poor, but between those who learn to work with AI and those who are worked by it.<\/p>\n<p><strong>Lifelong learning or lifelong precarity?<\/strong><\/p>\n<p>Our conversation ended with something more hopeful. Over the past eighteen months, Tom has reinvented himself as a videographer, editor, and digital learner \u2014 mostly self-taught through online courses and peer learning. He has acquired a range of skills, from lighting and sound to AI-assisted editing, none of which existed in his original degree.<\/p>\n<p>That, perhaps, is the lesson. In a world of accelerating change, learning can no longer stop at graduation. It must be continuous, self-directed, and creative. Those who adapt will find opportunities. Those who wait for the old job market to return will wait forever.<\/p>\n<p><strong>A new social contract for education and work<\/strong><\/p>\n<p>The deeper problem is, I think,\u00a0 systemic. We are asking young people to invest time, money, and hope into an education system that no longer guarantees them a livelihood.<\/p>\n<p>Employers complain of shortages while excluding the newly qualified.<\/p>\n<p>Universities sell courses while refusing to teach the skills employers now demand.<\/p>\n<p>Governments celebrate \u201cinnovation\u201d while ignoring the growing despair of those left out.<\/p>\n<p>If we want AI to serve society, not enslave it, we need a new social contract between learning, work, and technology \u2014 one that recognises human potential as our most valuable form of intelligence.<\/p>\n<p>As I said at the close of the podcast:<\/p>\n<blockquote><p>AI is changing the world, whether we like it or not. The only question that remains is whether we shape it \u2014 or let it shape us.<\/p><\/blockquote>\n<p>AI isn\u2019t the end of work. But it is the end of pretending that the old rules of education and employment still apply.<\/p>\n<hr \/>\n<p><b>Taking further action<\/b><\/p>\n<p>If you want to write a letter to your MP on the issues raised in this blog post, there is a ChatGPT prompt to assist you in doing so, with full instructions,\u00a0<a href=\"https:\/\/www.taxresearch.org.uk\/Blog\/2025\/06\/20\/chatgpt-prompt-for-a-letter-to-your-mp\/\">here.<\/a><\/p>\n<p>One word of warning, though: please ensure you have the correct MP. ChatGPT can get it wrong.<\/p>\n<hr \/>\n<p><b>Comments\u00a0<\/b><\/p>\n<p>When commenting, please take note of this blog\u2019s comment policy,\u00a0<a href=\"https:\/\/www.taxresearch.org.uk\/Blog\/about\/comments\/\">which is available here<\/a>. Contravening this policy will result in comments being deleted before or after initial publication at the editor\u2019s sole discretion and without explanation being required or offered.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>AI is reshaping work faster than universities, employers, or governments can adapt. In this intergenerational conversation, I talk with my son Tom about how artificial<br \/><a class=\"moretag\" href=\"https:\/\/www.taxresearch.org.uk\/Blog\/2025\/10\/08\/has-ai-broken-the-job-market\/\"><em> Read the full article&#8230;<\/em><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[231,204,35,16,147,142,106],"tags":[],"class_list":["post-86521","post","type-post","status-publish","format-standard","hentry","category-ai","category-economic-justice","category-economics","category-ethics","category-inequality","category-podcast","category-politics"],"_links":{"self":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/86521","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/comments?post=86521"}],"version-history":[{"count":4,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/86521\/revisions"}],"predecessor-version":[{"id":86540,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/86521\/revisions\/86540"}],"wp:attachment":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/media?parent=86521"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/categories?post=86521"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/tags?post=86521"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}