Politicians, not ChatGPT, caused the recruitment slump
The machines are already smarter and better organised than humans. They never ask for a pay rise, and they don't ask any awkward questions about the company's environmental record. An artificial employee is, in many ways, the model employee. But is artificial intelligence really responsible for a recent fall in entry-level jobs, as new figures from Adzuna, the online jobs board, would have you believe? Or is the Chancellor Rachel Reeves as much to blame as the ChatGPT founder Sam Altman?
It may be fashionable to blame AI, but it is wrong
It is certainly looking like a tough year to graduate from university. According to figures from Adzuna, the number of entry-level and new graduate vacancies on offer has fallen by 32 per cent from three years ago. Likewise, the jobs board Indeed reported that the Big Four accountancy firms – often the back-up choice for graduates who are not sure what to do with their lives but would like to make lots of money – have posted 44 per cent fewer job openings than they did a year ago. Add it all up, and one point is clear. The market is bleak.
It is easy to blame AI for that, and it makes for a quick headline. In fairness, there may be some roles that are now being automated. The trouble is, it is easy to mix up correlation with causation. In fact, there is a far simpler explanation for the collapse in graduate recruitments. Many companies massively over-expanded during the pandemic, and they are now cutting back where they can. Reeves put up employer's National Insurance, a tax on jobs, in her last Budget, and may well put it up again this autumn. Likewise, the Deputy Prime Minister Angela Rayner is pressing ahead with an extension of workers rights. On top of all that, the economy is barely growing, and could easily be in recession very soon.
That slightly clueless twenty-something you might have welcomed into your organisation a couple of years ago will now cost you more, will be impossible to get rid of, and won't have anything to do anyway because you don't have many clients left. It is hardly surprising no one wants to hire them. It may be fashionable to blame AI for the collapse of graduate recruitment this summer. But the government is at fault. Pointing the finger at ChatGPT is just a distraction.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Independent
4 hours ago
- The Independent
Entry level jobs fall by nearly a third since ChatGPT launch
The number of entry level jobs comprised of junior positions, graduate roles and apprenticeships has fallen by almost a third (31.9 per cent) since the arrival of ChatGPT, research shows. Job search site Adzuna found that vacancies looking for graduates had fallen to the lowest level since Covid, with entry level jobs now only accounting for a quarter of the total market, down from 28.9 per cent in 2022. While replacing entry-level roles with artificial intelligence taking on tasks is part of the picture, rising labour costs - including increased National Insurance contributions - are also a factor, with rising salaries outstripping inflation until recently. ChatGPT launched in November 2022, releasing several versions since then and starting what has been a new era of technological transformation. The company which owns it is now worth $300bn (£219bn), making it bigger than any public listed company on the London Stock Exchange. The chief executive of Anthropic, another AI firm, said recently that AI could wipe out up to half all entry-level jobs in as little as five years. Dario Amodei argued that unemployment could rise to ten or 20 per cent in the UK over that timeframe, saying: 'I don't think this is on people's radar'. James Neave, head of data science at Adzuna, said : 'If you can reduce your hiring at the entry level, that's just going to increase your efficiency and improve cost savings. The NIC contributions were just a pure financial burden,' while also suggesting the upcoming Employment Rights Bill could also be a dissuading factor. 'If you're an employer, it all adds to this list of reasons why you shouldn't hire people,' he said. Several big firms across the nation have already said they plan to significantly reduce their headcount as part of cost-cutting measures, with artificial intelligence slated to take on much of the work. BT are a case in point, with CEO Allison Kirkby saying initial plans to strip out 40,000 to 50,000 employees by 2030 didn't 'reflect the full potential of AI', meaning even more job losses could follow. Amazon also said job losses would be coming as a result of employing AI in wider-reaching roles, but did not specify how many or when.
The Independent
4 hours ago
- The Independent
Entry level jobs fall by nearly a third since Chat GPT launch
The number of entry level jobs comprised of junior positions, graduate roles and apprenticeships has fallen by almost a third (31.9 per cent) since the arrival of Chat GPT, research shows. Job search site Adzuna found that vacancies looking for graduates had fallen to the lowest level since Covid, with entry level jobs now only accounting for a quarter of the total market, down from 28.9 per cent in 2022. While replacing entry-level roles with artificial intelligence taking on tasks is part of the picture, rising labour costs - including increased National Insurance contributions - are also a factor, with rising salaries outstripping inflation until recently. Chat GPT launched in November 2022, releasing several versions since then and starting what has been a new era of technological transformation. The company which owns it is now worth $300bn (£219bn), making it bigger than any public listed company on the London Stock Exchange. The chief executive of Anthropic, another AI firm, said recently that AI could wipe out up to half all entry-level jobs in as little as five years. Dario Amodei argued that unemployment could rise to ten or 20 per cent in the UK over that timeframe, saying: 'I don't think this is on people's radar'. James Neave, head of data science at Adzuna, said : 'If you can reduce your hiring at the entry level, that's just going to increase your efficiency and improve cost savings. The NIC contributions were just a pure financial burden,' while also suggesting the upcoming Employment Rights Bill could also be a dissuading factor. 'If you're an employer, it all adds to this list of reasons why you shouldn't hire people,' he said. Several big firms across the nation have already said they plan to significantly reduce their headcount as part of cost-cutting measures, with artificial intelligence slated to take on much of the work. BT are a case in point, with CEO Allison Kirkby saying initial plans to strip out 40,000 to 50,000 employees by 2030 didn't 'reflect the full potential of AI', meaning even more job losses could follow. Amazon also said job losses would be coming as a result of employing AI in wider-reaching roles, but did not specify how many or when.
Telegraph
4 hours ago
- Telegraph
Rachel Reeves to announce cash Isa cut
Rachel Reeves is poised to announce a cut to the annual tax-free cash Isa allowance, reports suggest. The Chancellor is expected to confirm that she will reduce the £20,000 cap on the amount that can be shielded from tax in cash Isas each year in her Mansion House speech on July 15. Ms Reeves confirmed last month that she had no plans to reduce the total amount that can be paid into Isa products each year. However, the cash Isa limit is understood to still be under threat, with the Chancellor having previously been urged by City bosses to reduce the allowance to as little as £4,000. One Whitehall source familiar with the discussions told the Financial Times that ministers had been listening to those lobbying in favour of a higher limit, and that negotiations about the level it would be set at were still ongoing. The Government wants to reform cash Isas to push more people to invest in stocks and shares. There has been intense lobbying on either side of the debate by building societies who use cash Isa savings to fund loans, and City firms keen to boost investment in the stock market. Industry experts have condemned any move to slash the cash Isa allowance, warning it would damage incentives for long-term investment. Cutting the allowance would mean millions of people could save less each year tax-free, and would face a choice between putting money into taxable savings accounts or investing in riskier stocks. A recent survey by stockbroker, AJ Bell, suggested that only one in five savers would switch to the stock market if their limits were cut. There are four main types of Isa: cash, stocks and shares, lifetime, and innovative finance. Cash Isas are the most popular product, with savers stashing away a record £49.8bn last year – a 6pc increase on the previous year. Isa limits were originally set at £7,000 when the savings accounts were introduced by Gordon Brown, the former chancellor, in 1999. The annual allowance was fixed at £20,000 from the 2017-2018 tax year, with no requirement for savers to put money in stocks and shares instead of cash. Junior Isas (Jisas) have an annual limit of £9,000.
