‘Lost technology’ warning as 1000’s of younger employees to get replaced by AI robots
Experts fear that the adoption of AI will feed more youth unemployment across the UK, with worries that we’ll see a “lost generation” of working forming
The use of AI is being linked to unemployment(Image: Getty Images/iStockphoto)
Nearly a fifth of young workers will be replaced by robots next year, experts reckon. Fears of a “lost generation” of workers is seeing a spike in youth unemployment driven by higher payroll taxes and the adoption of AI.
The rate of unemployment among young people will climb to 17.8% by mid 2027 from 16.9% this year, the British Chambers of Commerce (BCC) predicts.
AI tools being used for work previously done by entry-level workers was cited as a key factor in driving up youth joblessness. And the business lobby group said that young people were being locked out of jobs because of increasing national insurance contributions and the minimum wage.
The BCC’s David Bharier said: “The UK is not in recession but the economy remains trapped in a cycle where each recovery is interrupted before gaining traction.
“With youth unemployment approaching 18% by mid-2027, the UK risks weakening the skills pipeline it needs for the next economy. The long-term economic potential remains enormous.
“The UK has world-leading research institutions, rapid AI adoption and the third largest AI investment ecosystem globally.
“But realising that potential requires reducing the cost burden on firms, rewarding productive risk-taking, and positioning UK businesses to capture the opportunities that will drive future economic gain.”
The BCC also predicts that total unemployment will reach 5.5% next year – up from the current 5%. GDP this year is expected to grow by 0.9% then 1.0% in 2027, and 1.3% in 2028, its economic forecast report said.
The Middle East conflict was called “a major economic drag,” with business investment now expected to fall by 2.2% this year.
Inflation is forecast to peak at 3.8% by the end of 2026 before easing to 2.3% by 2027.
The study comes after a landmark government-commissioned review warned that without urgent system reform, youth unemployment could surge to 1.25m by early 2030s.
Former health secretary Sir Alan Milburn, who authored the report, called for an overhaul of schools, the welfare system, and the jobs market to avert a “lost generation”.
