AI career anxiety is rising faster than job losses
20 May 2026
by Chris Rea
AI career anxiety is rising faster than job losses
Guest blog: Chris Rea, Prospects at Jisc, discusses their new report showing a disconnect between young people's perceptions and AI's real impact on work and jobs.
AI is already having a significant impact on how young people approach their careers. But while fears about AI-driven job losses are influencing decision-making, the reality inside UK workplaces is far more nuanced.
Our latest report combines student and graduate insight from Prospects at Jisc with views from employer members of the Institute of Student Employers (ISE) to reveal a growing disconnect between how young people perceive AI is impacting jobs and work and the reality of how employers are adopting it.
Perception gap
AI and Early Careers found that more than one in ten (13%) of students and early career professionals have already changed their career plans because of AI concerns (up from 10% last year), with a further third considering doing so. Among those who altered their direction, nearly three quarters cited fears that their chosen role could eventually be replaced.
However, employers tell a very different story. While organisations are increasingly embedding AI into their operations, most are not reducing entry-level recruitment because of automation. At the moment, hiring decisions are mainly driven by external market uncertainty, strategic restructuring and budget pressures.
In fact, more than half of employers surveyed expect entry-level hiring to remain stable over the next three years, while over a quarter anticipate growth. Notably, none predicted large-scale reductions in hiring driven directly by AI.
This perception gap matters and industry and educators have a critical role to play.
If left unchecked, it risks discouraging talented young people from entering sectors where the UK urgently needs digital capability, innovation and productivity growth. It is also deepening existing challenges around career confidence, motivation and preparedness.
The reality of roles reshaped rather than replaced
Our AI and Early Careers research points to a more evolutionary than revolutionary shift in the labour market.
AI is increasingly taking on routine and repetitive tasks, such as administrative work, basic research and first-draft content generation, freeing-up entry-level workers to focus on areas where human skills remain critical: judgement, communication, creativity and collaboration.
The future of work is unlikely to be defined by humans versus AI, but by humans working effectively alongside AI. Employers increasingly value adaptability, critical thinking and digital fluency as core employability skills.
This is especially true for entry-level roles, where AI is reshaping responsibilities but not removing the need for human potential, learning capacity and interpersonal capability.
AI confidence and capability
One of our report’s most interesting findings is that perceptions of the impact of AI vary significantly depending on access to relevant skills development, experience and support.
Respondents who felt equipped with AI knowledge or practical exposure through education or work were more likely to feel optimistic and curious about emerging opportunities. Those without that confidence reported far greater anxiety and uncertainty.
The divide was particularly pronounced among younger respondents and disabled participants, highlighting the risk that uneven access to AI literacy could widen existing inequalities in the labour market.
This points to a need for broader, inclusive AI capability and confidence building across education and employment pathways.
Technical skills alone will not be enough. Young people also need clear guidance about how AI is affecting specific industries, what new opportunities are emerging, and which human skills will become even more valuable in an AI-enabled economy.
Critical leadership role
Public narratives around AI often oscillate between hype and fear. Yet the evidence suggests that workplace transformation is currently more gradual, collaborative and human-centred than many young people assume. In fact, more than half of employers indicated that AI was changing roles slower than they expected
AI and Early Careers reinforces the continued importance of transparency, clear guidance and support around early career opportunities and skills development. For employers this means communicating responsibly about AI’s impact on jobs and careers.
Student respondents highlighted their need for up-to-date information on labour market impact as well as practical skills training and guidance on ethical use. Graduates already highlighted similar needs alongside job security reassurance.
Done well, this can help convert anxiety into ambition.
The UK has an opportunity to position itself as a leader not only in AI innovation, but in AI workforce transition, ensuring technology adoption strengthens opportunity rather than undermines confidence.
Closing the perception gap between fear and reality will be essential to achieving that goal.
Guest blog by Chris Rea, graduate careers expert for Prospects at Jisc.
If you're interested in techUK's work on jobs and skills, please contact:
Nimmi Patel
Associate Director - Skills Policy, techUK
Nimmi Patel
Associate Director - Skills Policy, techUK
Nimmi Patel is the Associate Director of Policy at techUK. She works on all things skills, education, and future of work policy, focusing on upskilling and retraining. Nimmi is also an Advisory Board member of the Digital Futures at Work Research Centre (digit). The Centre’s research aims to increase understanding of how digital technologies are changing work and the implications for employers, workers, job seekers, and governments.
Prior to joining the techUK team, she worked for the UK Labour Party and New Zealand Labour Party, and holds an MA in Strategic Communications at King’s College London and BA in Politics, Philosophy and Economics from the University of Manchester. She also took part in the 2024-25 University of Bath Institute for Policy Research Policy Fellowship Programme and is the Education and Skills Policy Co-lead for Labour in Communications.
Jake has been the Policy Manager for Skills and Future of Work since May 2022, supporting techUK's work to empower the UK to skill, attract and retain the brightest global talent, and prepare for the digital transformations of the future workplace.
Previously, Jake was the Programme Assistant for Policy. He joined techUK in March 2019 and has also worked across the EU Exit, International Trade, and Cloud, Data Analytics and AI programmes.
He also holds an MA in International Relations from the University of Sussex, as well as a BA(Hons) in International Politics from Aberystwyth University. During his time at Aberystwyth University, he won the International Politics Dissertation Prize.
Tess joined techUK as an Policy and Public Affairs Team Assistant in November of 2024. In this role, she supports areas such as administration, member communications and media content.
Before joining the Team, she gained experience working as an Intern in both campaign support for MPs and Councilors during the 2024 Local and General Election, and working for the Casimir Pulaski Foundation on defence and international secuirty. She has worked for multiple charities, on issues such as the climate crisis, educational inequality and Violence Against Women and Girls (VAWG). In 2023, Tess obtained her Bachelors of Arts in Politics and International Relations from the University of Nottingham.
techUK's Skills, Talent and Diversity Programme activities
techUK work with our members to signpost the opportunity of digital jobs and ensure these opportunities are open to people of diverse backgrounds. We strive to help our members attract, recruit, and retain a diverse workforce, whilst showcasing their work on workplace innovation. Visit the programme page here.
Jobs and Skills
To make sure that the UK is a world-leading digital economy that works for everyone, it is crucial that people have the digital skills needed for life and work. Rapid digitalisation is creating surging demand for digital skills across the economy and the current domestic skills pipeline cannot keep up. Digitalisation is also leading to rapid changes in the labour market that means some traditional roles are being displaced. There is an urgent need to better match the demand and supply.
The future of work is changing. Technology is powering a growth in flexible work across the economy, whilst emerging technologies such as robotics and AI are set to become common place. techUK believes the UK must consider the implications of digital transformation in the world of work now, equipping people and businesses across the country with the skills and conditions needed to take advantage of the opportunities presented by the 4IR.
Diversity and inclusion sits at the heart of digital growth. The tech sector understands that innovation thrives from diversity of thought and is continually looking to attract, recruit and retain a diverse workforce. techUK is proud to support a number of initiatives that promote this, from doing outreach work to ensure that people regardless of their background are inspired into tech, to initiatives that help build more inclusive workplaces for those with different accessibility needs.
Returners programmes offer a supported bridge back to work for people who have taken a career break. Providing ways for people to ease back into work after a career break is a vital way to make sure we do not lose out on their talent and experience. The techUK returners hub was created as a one-stop-shop for people looking to return to a career in digital.
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