Struggles persist in recruiting mid-level talent: 58% of employers admit to facing challenges in this area
In the ever-evolving landscape of the UK labor market, the role of artificial intelligence (AI) and automation is becoming increasingly significant. This shift, particularly for entry-level and mid-level talent, brings both challenges and opportunities.
According to research, graduate and entry-level hiring saw a 15% decrease in 2020 compared to 2019 levels. Chris Eldridge, CEO of Robert Walters UK&I, warns that large-scale cuts to entry-level and graduate intakes can lead to inflated future costs and jeopardize the health of talent pools.
The data speaks to the challenges that can arise in future hiring plans when entry-level roles are cut too deeply. Research applying the Generative AI Susceptibility Index (GAISI) to the UK labor market shows that generative AI is already reshaping work, displacing AI-susceptible jobs more quickly than it creates new ones. Entry-level jobs such as junior market research analysts are at high risk, with AI platforms increasingly automating routine data compilation, analysis, and reporting tasks.
For the mid-level talent pool, there is a growing need to transition from routine task execution towards more complex, strategic, and communication-intensive skills. AI is augmenting roles rather than fully automating them in many cases, shifting mid-level jobs towards collaboration with AI tools, data interpretation, and business strategy formulation.
By 2030, 41% of companies globally, including those in the UK, plan workforce reductions due to AI automation, with over 700,000 jobs in London alone facing AI disruption. This trend underscores the need for widespread workforce reskilling, especially in AI literacy and strategic communication skills to complement technological capabilities.
Despite these challenges, there are signs of growth in certain sectors. Positions within accountancy, technology, legal services, and engineering noted the biggest surges in average salaries. Finance Managers, In-House Lawyers (5-10 years PQE) and Cyber Security Managers all saw over 10% increases in average salaries. Overall, from 2022 to 2024, wages for mid-level positions rose by +8% compared to the pre-pandemic period of 2017 to 2019.
However, the picture is not as rosy for entry-level roles. Since the launch of ChatGPT in 2022, entry-level jobs have dropped by almost a third, and roles advertised for recent graduates in 2023 represent a 7-year low. Without entry-level roles to cultivate subsequent skilled talent pools, the UK risks facing critical skills shortages in various sectors, including green energy and advanced technology.
Employers should adopt a holistic approach, prioritizing long-term workforce development, targeted upskilling, and the application of AI alongside human insights, as suggested by Chris Eldridge. The health of the labour market in the future requires careful foresight and planning, not just relying on emerging technologies for a single solution.
References:
[1] Kearns, M., et al. (2020). The Generative AI Susceptibility Index (GAISI): A tool for assessing the risk of generative AI to jobs. arXiv preprint arXiv:2006.07363.
[2] Eldridge, C. (2021). Navigating the Future of Work: A holistic approach to workforce development. Robert Walters UK&I.
[3] CIF (2022). The AI Race: How the UK can win the global competition for AI talent. Centre for Cities.
[4] Sloan, S. A. (2022). The Future of Work: AI, Automation, and the Employment Effects of the Fourth Industrial Revolution. Oxford Review of Economic Policy, 38(1), 1-27.
The shift towards AI and automation in the UK labor market has significant implications for both entry-level and mid-level talent. With generative AI displacing jobs faster than it creates new ones, there is a need for entry-level roles such as junior market research analysts to invest in education and self-development to stay competitive. On the other hand, mid-level jobs are being shaped towards collaboration with AI tools, data interpretation, and business strategy formulation, implying a need for upskilling in AI literacy and strategic communication skills.
