UK Faces AI-Driven Job Cuts Amid Productivity Gains; Calls for Government Action Intensify
January 26, 2026
The UK is experiencing net AI-related job losses, with a net 8% decline in employment over the past year—the strongest negative signal among surveyed large economies.
Across five major economies, the United States is the only one posting a net increase in AI-related jobs, while the UK faces double the international average impact.
Khan calls on the government to act to create new entry-level and junior roles to replace positions that vanish.
An Anadolu Agency subscription limits are noted, but they do not affect the core findings presented.
Sam Altman argues for universal basic income as a potential offset to AI displacement while cautioning that there is no single silver bullet.
The piece includes sponsor posts and promotional summaries for AI platforms and legal tech services, outlining their offerings and target use cases.
Overall, the story blends a headline-driven data point about AI-driven employment changes with promotion of AI-related products and media content; the employment data remains the core substantive item.
London Mayor Sadiq Khan warns AI could trigger mass unemployment in the capital, given its concentration in white-collar and professional services.
Khan also warns that AI could worsen inequality and urges proactive measures to use AI for positive transformation rather than eroding jobs.
High-profile voices in the US, such as Jamie Dimon, urge governments and businesses to support workers displaced by AI to prevent social unrest.
A Morgan Stanley study of firms using AI for at least a year across five industries finds UK productivity gains from AI averaging about 11.5%, similar to the US, but with fewer jobs created and more cuts in the UK.
Another study indicates entry-level opportunities, including apprenticeships and graduate roles, have fallen by nearly a third since ChatGPT’s emergence in 2022.
Summary based on 6 sources
Get a daily email with more World News stories
Sources

The Guardian • Jan 26, 2026
AI is hitting UK harder than other big economies, study finds
Slashdot • Jan 26, 2026
AI is Hitting UK Harder Than Other Big Economies, Study Finds - Slashdot
The Independent • Jan 26, 2026
AI job cuts hitting UK hardest, research finds