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Labour shortage persists as employers turn to AI

As automation prevails, the market is no longer candidate led, said Amritpal Singh, co-founder of Multiplier -

The CIPD’s labour market outlook found 41% of employers are struggling to fill vacancies, with 24% planning to use automation to address them.

This is almost twice the level of automation in summer 2022 (13%).

The majority (69%) of employers are planning to recruit in the next three months and redundancy intentions have fallen, with 17% of employers expecting to make redundancies in the three months to December.

Over a third (39%) of employers have made counter offers to retain key staff in the past 12 months.

Amritpal Singh, co-founder of employment platform Multiplier, said despite hiring challenges, the labour market is no longer candidate-led.

Speaking to HR magazine, he said: “The dynamics of the job market are evolving. Employers are regaining some control as the market undergoes a significant shift.

“The transformative impact of AI continues to shape the landscape, influencing how talent is sourced and retained, meaning organisations are having to adapt their strategies to attract and retain top talent in this technology-driven era."


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Most organisations (53%), expect no change in the number of full-time staff employed by them as a result of generative AI

However, 25% think it will lead to more full-time jobs and roughly the same amount think it will decrease the number of full-time roles.

Manny Athwal, founder of School of Coding and AI, said AI will create better work.

He said: “One of the biggest uses of AI is likely to be the automation of tasks that would take an employee a long time to complete, such as writing reports.

“This does not mean that people will be replaced by machines, but it does mean that people will have more time to do the job they are actually paid for. Nobody ever started a career so they could be writing reports.”


Read more: AI guaranteed to go wrong, says MP


Two in five (40%) employers see increased productivity and efficiency as potential organisational benefits of using generative AI and a third (32%) see cost savings as a benefit.

However, 36% of employers see privacy and security concerns as potential drawbacks of implementing generative AI in their workplace.

Athwal said: “The best way for firms to be prepared for the age of AI is by investing in education and training. Young people today are a generation that has never known a world without tech and for that reason, just as we teach them lifelong skills like how to read, write or do basic maths, we should be teaching them how the devices and the programs that they use on a daily basis actually work.”