Baroness Moyo

AI has the potential to be a net creator of jobs and have a positive impact on economic growth: there are currently over 200,000 vacancies in the UK demanding AI skills and the jobs created by the AI economy are 7% more productive than the average UK job (CBI, 2023).

Rather than replacing jobs, AI is currently changing them, and the skills needed to carry them out. It has the potential to free workers from monotonous tasks like inputting data or filling out paperwork, allowing them to spend more time on creative and meaningful activities. Around 2.5% of overall tasks on average could be performed by generative AI, with 40% of jobs seeing some impact from the technology (KMPG, Generative AI and the UK labour market, 2023). While some tasks within jobs might be augmented by AI, humans are necessary to apply judgement, empathy and creativity to AI tools. We continue to monitor and research the impacts of AI on the labour market.

DWP is aware that the increased use of Artificial Intelligence may impact the labour market, affecting the nature and types of jobs available to workers in different sectors and regions in a way that is difficult to accurately forecast.

The UK labour market is fluid and dynamic, and an average of 900,000 employed people per quarter moved from one job to another over the last year. As yet, we have yet to see any evidence of significant job displacement that can be directly attributed to AI.

However, we are mindful of the potential risk of job displacement and our Jobcentre offer is designed to support claimants who need to transition to new roles by providing them with tailored, flexible advice.

The UK’s vibrant and dynamic capital markets are some of the strongest and deepest globally and the UK remains Europe’s leading hub for investment. Despite market turbulence globally in 2023, companies raised more capital in the UK than the next two highest European exchanges – Frankfurt and Amsterdam – combined.

The government is building on this, with an ambitious programme of reforms to boost IPOs and improve the competitiveness of UK markets. This includes delivering on the recommendations of Lord Hill’s UK Listing Review, and the commitments in the Chancellor’s Mansion House and Edinburgh reforms.

These reforms will make it easier for firms to list and raise more capital quickly in the UK. These reforms have been welcomed by industry and will ensure that the UK continues to support innovative firms to list and grow on UK markets.