Artificial intelligence impacts employment: The UK's future pay raise plan

With the rapid development of artificial intelligence technology, the gradual spread of automation has led to a notable reduction in job opportunities. According to the latest reports, one-sixth of employers in the UK indicated that the use of AI tools will result in staff reductions over the next year, with some predicting cuts exceeding 10%. Entry-level management, clerical, professional, and administrative positions are expected to be most affected. At the same time, UK employers plan to increase employee compensation to retain key talent and cope with organizational changes brought about by technological transformation.

The impact of artificial intelligence on the labor market is reflected in reducing repetitive jobs while restructuring the job composition. Low-skilled repetitive positions face a high risk of large-scale replacement, such as assembly line workers in manufacturing and warehouse sorters in logistics. The work in these roles is often standardized and process-oriented, and AI systems can perform these tasks efficiently through machine learning and automation technologies, leading to a significant decline in demand for these positions. At the same time, the number of high-skilled, innovative positions is rapidly increasing, resulting in a "polarization" trend in job structure. Furthermore, the rapid application of AI technology has led to overstaffing in some traditional industries, while the supply of talent in emerging fields is insufficient, causing an imbalance in labor market supply and demand. High-skilled workers, due to their mastery of AI-related technologies and knowledge, enjoy stronger competitiveness and higher remuneration in the labor market. In contrast, low-skilled workers, lacking the necessary skills and knowledge for transformation, face fewer employment opportunities, slow or even declining income growth, and in severe cases, the risk of unemployment. As a result, the income gap between workers of different skill levels widens, exacerbating the risk of social stratification.

In the face of the impact of artificial intelligence on the job market, it is necessary to strengthen the construction of a dynamic education and skill reshaping system, promote the integration of AI education into various educational stages, and cultivate compound talents with AI technological literacy and cross-disciplinary abilities. Additionally, efforts should be made to promote the transformation of employment structures and the creation of new positions, guide traditional industries toward digitalization and intelligent upgrading, and encourage the integration of emerging technologies with industries to foster the emergence of new jobs, thereby mitigating the impact of AI on the job market. At the same time, social security and employment support policies should be improved, and an 'AI Employment Impact Monitoring Platform' should be established to track and monitor in real time, issue early warnings for high-risk occupations, and provide decision-making bases for workers' transitions. Furthermore, affected workers should be offered unemployment benefits, reemployment training, and psychological counseling services to alleviate the social pressure brought by technological changes.

In conclusion, the impact of artificial intelligence on the labor market is not limited to the UK; countries around the world will face profound effects on employment due to the development of AI. The resulting adjustments in job structures and trends in compensation are prompting employers and policymakers in various countries to collaboratively explore governance frameworks and response strategies. Although AI applications have led to the reduction of certain positions, employers still plan to attract high-skilled workers by offering higher salaries to retain core talent. This not only reflects the deep reshaping of the labor market by technological change but also highlights the urgency of establishing adaptive policy frameworks. Therefore, countries should seek a balance between promoting technological innovation and ensuring employment equity, reducing the potential risks of technological change to social stability through education system reforms, guided industrial transformation, and strengthened social security, ultimately steering the labor market toward higher quality and greater inclusiveness.