Headline findings
Job-posting data indicate that Britain is experiencing a bifurcated labour market as firms adopt artificial intelligence tools. Overall advertised roles fell materially over the first half of the year, while openings for experienced technology professionals increased, particularly in positions tied directly to AI.
Broad decline but sharp occupational differences
British companies posted about 10% fewer jobs in July than in January 2025. That aggregate contraction masks wide variation by occupation. Software-development vacancies rose 14%, with much of that growth concentrated in senior roles and jobs directly connected to AI. Hiring has remained relatively resilient in information technology and engineering, where AI appears to augment the productivity of experienced staff and replace more routine tasks.
By contrast, vacancies in retail and manufacturing have fallen by double digits. Several white-collar professions that are more exposed to AI substitution - including accounting and marketing - have also seen substantial declines in advertised roles. Construction-related postings, spanning installation, maintenance, loading and stocking, have similarly failed to recover.
Manufacturing and construction: persistent weakness
Manufacturing job postings are down 58% from June 2022 and 18% below their level last summer. The data show that recovery in these areas has stalled, even as demand for specialised tech skills rises. Employers appear to be cutting roles that are more easily automated or where AI can replace repetitive functions.
Implications for workers and policy
The pattern points to firms using AI to reduce costs and automate entry-level or repetitive tasks while directing hiring toward employees who can deploy the technology effectively. That combination increases competition for experienced workers and raises barriers to entry for recent graduates, those re-entering the workforce and people seeking to change careers. Many of the stronger areas of the job market now require either specialist AI knowledge or substantial professional experience.
The shift could complicate efforts to steer more young people into technical qualifications. Training may expand skills but may not, on its own, grant access to roles where employers also demand years of prior experience.
Labour-market backdrop and commentary
Youth unemployment in Britain has reached its highest level in more than a decade. Bank of England Governor Andrew Bailey has described the country as having a "low hire, low fire" economy, in which businesses hold on to existing staff but remain cautious about recruiting. Continued weakness in entry-level hiring risks widening the experience gap and reducing routes into sectors that are benefiting most from AI adoption.
Who is affected
- Technology, particularly senior software and AI-related roles - experiencing stronger demand.
- Retail and manufacturing - seeing double-digit declines in vacancies and persistent weakness.
- White-collar occupations such as accounting and marketing - facing significant falls in postings.
- Construction and associated roles (installation, maintenance, loading and stocking) - struggling to recover.
The data point to a labour market where employers prioritise workers who can implement and manage AI tools, while automating tasks traditionally filled by less experienced employees.
Note: This report is based on job-posting trends and commentary drawn from the available employment data. Where the underlying sources provide limited detail, this piece reflects those limitations rather than introducing additional claims.