UK survey: 1 in 3 employers cut entry-level jobs as AI reshapes hiring

Artificial intelligence is leaving a measurable imprint on U.S. employment data, with the technology and financial services sectors shedding an average of 28,000 jobs per month in 2026 even as the broader economy continues to add positions, according to a Bloomberg analysis of Bureau of Labor Statistics payroll data.straitstimes+1

The losses are concentrated in the two sectors with the highest rates of AI adoption. U.S. Census Bureau data shows information-sector firms report 39.7% AI adoption and finance and insurance firms 33.9%, both far above the 19.8% national average. Roughly 25% of financial-activities employment sits in office and administrative support roles with high AI exposure, according to Bloomberg's reporting.challengergray+1

Layoff Tracker Confirms AI as Leading Driver

Challenger, Gray & Christmas, the outplacement firm that tracks corporate layoff announcements, has logged AI as the leading stated reason for job cuts for five consecutive months through July 2026. The firm counted 87,714 AI-attributed cuts through May alone — already surpassing the 54,836 recorded in all of 2025. By mid-year, the year-to-date total had reached approximately 102,000.challengergray+2

"AI is certainly making an impact as we speak in a way that no technology has before," said John Challenger, chief executive of Challenger, Gray & Christmas. He added that finance "might be the next big sector that's most affected," given administrative roles make up roughly a quarter of sector employment.news.outsourceaccelerator

Entry-Level Workers Bear the Brunt

The pattern extends beyond the United States. A survey of 1,001 British businesses conducted by Survation for Lancaster University's Work Foundation, published Wednesday, found that 36% of UK employers had reduced entry-level positions over the past year, with AI and automation cited as a factor by 58% to 60% of larger firms.globalbankingandfinance+1

More than one million people aged 16 to 24 in Britain were classified as not in education, employment or training in the first quarter of 2026 — the highest since late 2013. "Young people are entering one of the toughest labour markets in years," Work Foundation Director Ben Harrison said.globalbankingandfinance

Back in the U.S., firms spending heavily on AI recorded 10.2% headcount growth over two years alongside 12% entry-level hiring growth — but the new roles demand workers who can operate AI-augmented workflows rather than perform the administrative tasks being eliminated. The data suggests AI is simultaneously compressing traditional headcount and creating demand for a different kind of worker within the same high-adoption firms.news.outsourceaccelerator