UK Faces AI-Driven Job Cuts Amid Productivity Gains; Calls for Government Action Intensify

January 26, 2026
UK Faces AI-Driven Job Cuts Amid Productivity Gains; Calls for Government Action Intensify
  • 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

More Stories