UK AI-driven two‑tier labour market deepens hiring divide

Companies in the United Kingdom are increasingly prioritising workers with artificial‑intelligence (AI) expertise, creating a two‑tier labour market. Data from the job portal Indeed show that overall job postings this month are about 10 % lower than in January 2025, while senior roles directly linked to AI have risen 14 %.

The shift favours experienced staff in AI‑related positions, with sectors such as retail, manufacturing and routine office jobs (e.g., accounting, marketing) seeing double‑digit declines in hiring. Manufacturing postings have fallen 58 % since June 2022 and are 18 % below last summer’s level. Experts say the trend widens the gap for younger workers and those seeking entry‑level jobs, as unemployment among young people in the UK remains high.