AI will shrink headcount as hiring confidence remains at record low

One in six employers expect AI to shrink their workforce over the next year, with junior roles most at risk.

One in six employers expect AI to shrink their workforce over the next year, with junior roles most at risk, according to a survey conducted by the Chartered Institute of Personnel and Development (CIPD).

Almost two thirds of those surveyed believe that clerical, junior managerial, professional or administrative roles are most likely to be lost because of AI.

The risk is highest in large private sector firms, where 26% expect headcount to fall, compared with 17% in the private sector overall and 20% in the public sector.

Among those who expect headcount to reduce because of AI in the next 12 months, a quarter expect to lose more than 10% of their workforce.

James Cockett, Senior Labour Market Economist at the CIPD, said:

'AI is transforming the way many people work and has great potential for improving productivity and performance, but it also risks leaving many people behind.

'Junior roles stand to be most affected by AI, but we need a national drive to retrain and upskill people of all ages and career stages. It's crucial that we see rapid progress on the development of the Growth and Skills Levy, informed by genuine consultation with employers, to ensure workers are equipped with the skills for an AI-driven economy.'

Internet link: CIPD

Call 0151 559 1704 or Request a callback

Please submit your details here and someone will be in touch to discuss your requirements.

Image Captcha
Enter the number above

© 2025 Mattocks Grindley. All rights reserved.

Mattocks Grindley is a trading name of JMG Victoria Ltd & Mattocks Grindley Ltd - Registered in England and Wales No: 10872174 & 07216289. Registered office: 18 Mulberry Avenue, Widnes, WA8 0WN.
JMG Victoria Ltd & Mattocks Grindley Ltd are registered with the Institute of Chartered Accountants.
Mattocks Grindley Ltd is registered with the Chartered Institute of Taxation as a firm of Chartered Tax Advisors.

We use cookies on this website, you can find more information about cookies here.
CTA ICAEW