{"id":5709,"date":"2025-11-10T13:33:34","date_gmt":"2025-11-10T13:33:34","guid":{"rendered":"https:\/\/prepsaret.com\/news\/?p=5709"},"modified":"2025-11-10T13:33:34","modified_gmt":"2025-11-10T13:33:34","slug":"uk-employers-plan-3-pay-rises-but-ai-set-to-cut-jobs","status":"publish","type":"post","link":"https:\/\/prepsaret.com\/news\/uk-employers-plan-3-pay-rises-but-ai-set-to-cut-jobs\/","title":{"rendered":"UK Employers Plan 3% Pay Rises, But AI Set to Cut Jobs"},"content":{"rendered":"<p><b>Key Points:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">UK employers expect average pay rises of 3% over the next year, according to a CIPD survey.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">One in six firms anticipate workforce cuts due to AI adoption, especially in junior and clerical roles.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Hiring confidence remains near post-pandemic lows, with the public sector hit hardest.<\/span><\/li>\n<\/ul>\n<h3><b>Wage Growth Holds Steady as Hiring Confidence Weakens<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">British employers are planning to raise wages by an average of 3% over the next 12 months, but many remain cautious about hiring amid mounting economic pressures and the growing influence of artificial intelligence (AI) on the job market.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to the Chartered Institute of Personnel and Development (CIPD), hiring intentions across the country are among the weakest since the pandemic, particularly in the public sector, where budget constraints and hiring freezes have become common. The findings come ahead of the November 26 budget, with the CIPD urging Finance Minister Rachel Reeves to avoid tax policies that could further dampen employment prospects.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cPeople looking for <a href=\"https:\/\/prepsaret.com\/comptia\/cybersecurity-jobs\" target=\"_blank\" rel=\"noopener\">jobs<\/a> are already feeling the impact of slower hiring since Reeves\u2019 first budget,\u201d said James Cockett, the CIPD\u2019s senior labor market economist. \u201cWe need to see a stronger focus by the government and employers on long-term workforce planning and investment in skills to help people use AI effectively or transition into new<a href=\"https:\/\/prepsaret.com\/comptia\/comptia-casp-for-military-and-government-roles\" target=\"_blank\" rel=\"noopener\"> roles<\/a>.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The survey of over 2,000 businesses found that median expected pay growth remains at 3%, marking the sixth consecutive quarter at that level. This figure aligns with the Bank of England\u2019s latest report, which recorded employer wage growth expectations rising slightly to 3.7% in the three months to October \u2014 the highest in five months.<\/span><\/p>\n<h3><b>AI Prompts Fears of Job Reductions<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">While wage increases appear steady, employers are increasingly anxious about the effect of artificial intelligence on employment. The survey revealed that one in six <a href=\"https:\/\/prepsaret.com\/shrm\/why-employers-prefer-candidates-with-shrm-certifications\" target=\"_blank\" rel=\"noopener\">employers<\/a> expects AI to enable workforce reductions within the next year.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Of those anticipating cuts, a quarter expect reductions of more than 10%, with junior managerial, clerical, and administrative positions most at risk. Many firms see AI as a way to streamline operations, automate repetitive tasks, and boost efficiency \u2014 but experts warn that without proper workforce retraining, the technology could displace thousands of employees.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The <a href=\"https:\/\/www.cipd.org\/en\/\" target=\"_blank\" rel=\"noopener\">CIPD<\/a> emphasized that the UK government should prioritize skills development and digital literacy programs to help workers adapt to the evolving labor landscape. \u201cAI is changing how we work, but it shouldn\u2019t come at the cost of opportunity,\u201d Cockett noted.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Economists expect official labor data due Tuesday to show a slight slowdown in overall wage growth, with regular pay projected to rise 4.6% year-on-year, down from 4.7% in the previous report.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As businesses balance the need for cost efficiency and innovation, the UK faces a delicate challenge: managing technological transformation without sacrificing employment stability or fair pay.<\/span><\/p>\n<p><strong>Read Also:<\/strong><\/p>\n<ul>\n<li><a href=\"https:\/\/prepsaret.com\/news\/microsofts-35-billion-ai-capital-push-raises-questions-even-as-azure-soars\/\" target=\"_blank\" rel=\"noopener\">Microsoft\u2019s $35 Billion AI Capital Push Raises Questions Even as Azure Soars<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key Points: UK employers expect average pay rises of 3% over the next year, according to a CIPD survey. One in six firms anticipate workforce cuts due to AI adoption, especially in junior and clerical roles. Hiring confidence remains near post-pandemic lows, with the public sector hit hardest. Wage Growth Holds Steady as Hiring Confidence [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":5711,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[334],"tags":[],"class_list":["post-5709","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-hr-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.4 (Yoast SEO v25.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>UK Employers Plan 3% Pay Rises, But AI Set to Cut Jobs<\/title>\n<meta name=\"description\" content=\"UK employers expect average pay rises of 3% over the next year. 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