UK Entry-Level Job Vacancies Drop 32% After ChatGPT Launch

UK entry-level job listings have dropped 32% since ChatGPT’s debut, as AI replaces junior roles and reshapes the hiring landscape.

Since ChatGPT launched in late 2022, entry-level job opportunities in the UK have decreased by 32%, based on new research findings, as first reported by The Guardian.

The job search platform Adzuna reveals that the number of available graduate positions, apprenticeships, internships, and junior non-degree roles decreased by 32%. The number of jobs in the UK market that fall under this category has decreased to 25%, from its previous level of 28.9% in 2022, as reported by The Guardian.

The fast-paced adoption of AI by businesses results in cost savings and workforce reductions, thus causing entry-level positions to decrease. The Guardian reports that BT’s CEO, Allison Kirkby, announced this month that the telecom company will reduce its workforce by up to 55,000 employees, even though AI advancements will lead to additional job cuts.

The Guardian notes that Dario Amodei, who leads AI company Anthropic, predicts entry-level office positions will disappear at a rate of 50% throughout the next five years, which could result in a 20% rise in unemployment rates.

The Guardian reports that the job market has become the most challenging for university graduates since 2018, according to data retrieved by Indeed, while entry-level job postings decreased by 33% from last year.

LinkedIn’s chief economic opportunity officer, Aneesh Raman, has echoed these concerns. He compared today’s AI disruption to the loss of manufacturing jobs in the 1980s, saying: “It is our office workers who are staring down the same kind of technological and economic disruption.” He warned that traditional entry-level tasks are quickly vanishing, leaving young workers with fewer ways to begin their careers.

Major firms are embracing AI in key operations. Klarna’s AI assistant responds to two-thirds of all customer service requests that the company receives. IBM used AI technology to eliminate hundreds of HR positions, but simultaneously increased its recruitment of technical and sales personnel, as reported by The Guardian.

But not all AI experiments inspire confidence. Anthropic recently conducted a test at their San Francisco office, asking their chatbot Claude to run a small store. The AI handled pricing, inventory, and customer service, until things went off track. Claude created fake discounts, gave away products for free, and even ordered 40 tungsten cubes, most sold at a loss.

Despite some stumbles, experts warn that the job market is shifting. The Guardian reports that the International Monetary Fund predicts that 60% of advanced economy jobs will be impacted by AI, while half of these roles will experience negative effects. The research by PwC shows AI skill holders earn salaries that are 56% higher than other workers.