Graduates change career plans as AI upends jobs market

Telegraph

2 days ago

One in 10 graduates have already changed their career plans over fears that artificial intelligence (AI) will upend their job prospects.
University leavers seeking a career in industries such as graphic design, coding, film and art are particularly concerned about the impact of AI on their prospects, fearing the rapidly developing technology will render their jobs obsolete.
It comes amid wider concerns about Britain's cooling labour market, with companies slashing hiring and increasing lay-offs in recent months as they battle the Chancellor's recent National Insurance raid and increase to the minimum wage.
According to the survey of 4,072 respondents by the university and career advisers, Prospects, 10pc said they had changed their career plans because of AI, rising to 11pc among graduates.
Chris Rea from Prospects said while many graduates were changing their career plans because of the negative impact of AI, others were considering working in a new industry because of the opportunities the technology has created.
The main reason given by students and graduates for changing their career path was owing to concerns that their job would become obsolete. University leavers also singled out that opportunities in the creative industry were at risk owing the rapid advancement of AI.
Jeremy Swan, from the Association of Graduate Careers Advisory Services, said technological advancements meant there is more pressure on graduates to seek out jobs in industries where they cannot be replicated by AI.
He added: 'I think it's about re-framing people's thinking, so that they can see there are opportunities out there that look slightly different than what they're used to.'
Mr Swan said AI has left many students and graduates feeling 'really uncertain about where they stand'.
The number of new entry-level vacancies has fallen 32pc since Chat GPT was released in November 2022, according to figures by Adzuna, the job search platform.
Mr Swan added: 'There's a lot of uncertainty that's come off the back of AI, people worrying how it's going to affect their chosen career paths, and we would just say this is where decent career support matters more than ever.'
According to LinkedIn data, hiring in the UK fell 6.7pc in June compared with a month earlier, following a 3.9pc rise in May. Official data also showed that unemployment jumped to a four-year high of 4.7pc in the three months to May.
Last month, the Bank of England Governor, Andrew Bailey, said larger interest rate cuts will be required if the jobs market starts to show clearer signs of a slowdown. City traders are expecting the Bank's Monetary Policy Committee to cut interest rates from 4.25pc to 4pc when they meet on Thursday.
University leavers are facing an increasingly challenging labour market this year, with employers cutting back on graduate recruitment.
According to data published by Adzuna in May, graduate job listings plunged by almost 23pc in the year to April as soaring taxes prompt businesses to cut back hiring for entry level positions.
Increases to the national living wage, which increased 6.7pc to £12.21 per hour in April, mean many graduate schemes are only offering salaries in line with the minimum wage. A full-time worker on the UK's lowest salary now earns the equivalent of £25,500 annually.
KPMG is one of the major employers to cut its recruitment scheme, with just 942 graduates and school leavers hired last year compared with 1,399 in 2023. It expects to hire around 1,000 graduates and school leavers this year.
As graduates face increasing competition for entry level roles and a cooling job market, many are turning to AI to help draft and tailor their job applications.
The survey by Prospects also found that 43pc had used AI to edit or draft a cover letter, while 26pc had used AI to answer questions in job application forms. However, Mr Swan believes students and graduates are under-reporting their use in AI.
He said that while using AI can be helpful in getting students started with their CV or cover, students needed to make sure they were using 'these tools in an ethical way'.