Artificial Intelligence Slows UK Job Openings Amid Economic Uncertainty

UK job vacancies have declined 31% in the past three months, with a 38% drop in jobs expected to be significantly altered by AI, such as tech and finance roles. McKinsey & Co. analysis suggests companies are pausing recruitment due to anticipation of future productivity gains from AI. Entry-level jobs involving tasks like summarizing meetings or sifting through documents have also seen a decline.

The UK job market is experiencing significant changes, with job vacancies declining by 31% in the past three months. According to McKinsey & Co., this decline is particularly pronounced in tech and finance roles, with a 38% drop expected due to the anticipated impact of AI. Companies are pausing recruitment in anticipation of future productivity gains from AI technologies [1].

This shift is evident in entry-level jobs involving tasks like summarizing meetings or sifting through documents, which have also seen a notable decline. The UK government, in response, is launching a pioneering AI initiative in collaboration with Meta and the Alan Turing Institute. The Open-Source AI Fellowship, a $1 million program set to begin in January 2026, aims to address these challenges by embedding skilled engineers within the public sector to co-create open-source AI tools [1].

The fellowship will focus on practical AI solutions for everyday government needs, using Meta's Llama 3.5 open-source models to enhance tasks such as document translation, housing approvals, and national security functions. This initiative underscores the UK's ambition to build sovereign AI capabilities and modernize essential infrastructure systems [1].

The UK government’s Technology Secretary, Peter Kyle, described the program as “AI in action – open, practical, and built for public good,” emphasizing the nation’s focus on delivering tangible improvements rather than conceptual experiments [1].

Meta’s involvement in the program goes beyond funding; it includes granting access to its Llama 3.5 models, enhancing the role of AI in government-grade tools. This aligns with broader UK efforts to harness AI while managing its risks, as seen in the establishment of the AI Safety Institute (AISI) to independently evaluate models like ChatGPT [1].

However, the partnership has faced criticism, with some arguing it risks granting excessive influence to private firms and compromising digital sovereignty. Technology Secretary Peter Kyle himself has cautioned that dealing with multi-billion-dollar corporations requires a nation-state level of diplomacy, rather than traditional regulatory tactics [1].

The Open-Source AI Fellowship matters for several reasons. It aims to reduce dependency on proprietary US systems, develop talent within government agencies, and foster transparency through open-source commitments. The initiative aligns with the government’s broader mission to drive public efficiency, competitiveness, and technological independence [1].

The fellowship applications are expected to open late 2025, with placements starting in January 2026. Each selected fellow will spend a year within a government ministry or body, collaborating on AI tools that will be developed openly and iteratively. Applications will be vetted jointly by Meta, the Turing Institute, and government stakeholders [1].

The UK is also advancing multiple Big Tech partnerships, including a parallel Google Cloud agreement aiming to upskill 100,000 civil servants in cloud and AI by 2030 [1].

References:
[1] https://vocal.media/01/uk-partners-with-meta-to-build-ai-fellowship-aiming-for-public-sector-transformation