Rishi Sunak warns AI is flattening UK jobs market for young people

Former UK Prime Minister Rishi Sunak has highlighted the impact of artificial intelligence (AI) on the UK jobs market, particularly for young people seeking entry-level positions.

He stated that AI is causing a flattening in job growth, making it harder for graduates to find roles in sectors such as law, accountancy, and the creative industries.

Sunak, now an adviser to AI firms Anthropic and Microsoft, noted that company executives have privately acknowledged a slowdown in recruitment of young workers due to AI-driven efficiencies.

He described this trend as "flat is the new up," indicating businesses can grow without significantly increasing employment.

In response to these changes, Sunak proposed abolishing National Insurance over time and shifting the tax burden towards corporate profits, which are expected to rise with AI-enhanced productivity.

He argued this tax reform would make hiring workers more attractive and help governments adapt to reduced revenue from employment taxes.

The former chancellor emphasized the need to carefully manage AI's impact on employment, suggesting that AI should be used to assist people in doing their jobs better rather than replacing them.

He also pointed out that many countries will need to reconsider their tax systems as AI alters traditional employment patterns.

Sunak's comments come amid his advisory roles at Anthropic and Microsoft, and follow his previous efforts to regulate technology, including hosting an AI safety summit in 2023.

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