AI starts to take a toll on UK jobs market

ByRhys Hughes

January 11, 2026 , , , ,
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Britain’s hiring market has become the most competitive among major economies as both jobseekers and recruiters grapple with the growing influence of AI.

LinkedIn data shows the UK is facing an AI-driven bottleneck, with applications per vacancy more than doubling since spring 2022, even as 53 per cent of workers search for new roles.

Nearly three quarters of UK candidates say finding a job has become harder over the past year, a sharper decline than seen in the US, France, or Germany. This pressure is being fuelled by a slowing economy, intensified competition, and the rapid adoption of AI tools that many applicants struggle to navigate effectively.

Although most jobseekers plan to use AI in their search, many remain unsure how to stand out in automated screening processes, while recruiters report increasing difficulty finding suitable candidates. The shift is reshaping career choices, driving upskilling, entrepreneurship, and demand for AI skills, even as entry-level roles decline and expectations for digital capability rise.

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