Artificial Intelligence (AI) could eliminate up to 3 million low-skilled jobs in the United Kingdom by 2035, according to a new report from a leading educational research charity. The findings highlight a major shift driven by automation, signalling deep structural changes in the country’s labour market.
The report notes that the most vulnerable jobs include trades, machine operations, clerical roles, and other routine administrative tasks, which are increasingly being replaced or supported by AI systems. At the same time, individuals with higher skill sets are expected to become even more valuable as workload automation intensifies—at least in the short to medium term.
Despite projected losses, the UK economy is still expected to add 2.3 million jobs by 2035, though the opportunities will not be evenly spread across sectors or regions.
The research also reveals an unexpected trend: AI may impact high-skilled professions—such as software engineering, legal services, and management consulting—more sharply than many manual and trade-based jobs. For example, a study by King’s College published in October found that high-paying firms saw a 9.4% workforce reduction between 2021 and 2025, closely aligned with the rise of AI tools like ChatGPT.
Several companies have already begun restructuring.
- Clifford Chance, a major law firm, confirmed laying off nearly 10% of business services staff at its London office, citing AI adoption.
- The head of PwC scaled back plans to hire 100,000 new employees between 2021 and 2026, saying AI has reshaped organisational priorities.
While many headlines warn of mass job losses, the report argues that predictions remain premature. The current wave of layoffs also reflects broader challenges, including a stagnating economy, rising national insurance costs, and cautious hiring strategies among employers.
Report co-author Jude Hillary described widespread uncertainty among businesses:
“There’s this general uncertainty about where things are going. There’s lots of talk about AI and automation without much substance, and employers are worried.”
The overall impact of AI on the UK workforce is described as complex. While automation may increase demand for some low-skilled occupations, those with fewer qualifications could struggle the most to adapt. The report stresses the need for proactive government investment in training and social support to prevent long-term inequality.
