Industries focused on skilled trades and technology are experiencing workforce growth, according to an analysis of employment data. This trend contrasts with sectors such as finance, banking, and administration, which are seeing workforce reductions attributed to automation, economic shifts, and the increasing integration of artificial intelligence.
Construction employment saw a significant increase, growing by 2.1% in June and 8.1% over the preceding three months. This surge is partly driven by young graduates shifting towards vocational work and trades, as artificial intelligence presents challenges for entry-level office positions. Manufacturing also experienced a rise in workers, with a 4.7% increase in June and a 9.3% rise over the past year.
Education roles also showed robust growth, with a 4.4% monthly increase in June and an 8.1% rise over three months. This expansion is linked to a growing student population and more complex curriculum requirements, which are bolstering the need for educators.
AI Creates New Opportunities in Technology
While AI has contributed to job displacement in some areas, it is also a catalyst for new roles, particularly within the science and technology sectors. These fields experienced the strongest growth in June, with a 5.7% monthly increase, indicating that the demand for professionals skilled in developing and utilizing AI tools is on the rise.
Declines in Financial and Administrative Sectors
Conversely, the financial services sector, including banking and accounting, is facing a decline in employment. Accountancy roles dropped by 0.1% in June and 6% over a three-month period, while banking employment fell by 1.6% in June and 5.7% over the same three-month span. These reductions are linked to increased automation, a potential skills gap, and external pressures.
Employment Hero's UK managing director, Kevin Fitzgerald, noted a significant shift in the labor market. He stated that industries like banking and finance, traditionally strong areas for graduates, are navigating economic pressures and technological change, leading many businesses to adopt a more cautious hiring approach. Admin and office support roles also saw a slight decrease of 0.3% in June, another area impacted by the rise of AI. The report also highlighted a 13-month low in salaries for financial roles, with negative wage growth over the past year.