AI creates two-speed UK jobs market

Data from Indeed, shared with Bloomberg, shows that UK employers posted about 10% fewer vacancies in July 2025 compared with January 2025, but the decline masks a widening split. Software developer postings rose 14%, driven by senior and AI-related roles, while IT and engineering held up. In contrast, vacancies in retail, manufacturing, accounting, and marketing fell by double digits. Manufacturing postings are down 58% since June 2022 and 18% below last summer. Blue-collar roles such as construction and maintenance have not recovered. The trend creates a two-speed labour market favoring experienced workers with AI skills, making it harder for young people and career changers. Youth unemployment in the UK is at its highest in over a decade, which United Kingdom — Bank of England Governor Andrew Bailey attributes to a 'low hire, low fire' economy. Prime Minister Andy Burnham has promoted technical qualifications, arguing that practical skills remain valuable despite AI advances.