Latest / Can't Find Job? AI Is Quietly Replacing Millions of Workers / UK Professional and Scientific Jobs Grew Even as Payrolled Employment Fell
Transcript
- 0:00SPEAKER_00: UK professional and scientific jobs grew even as payroll employment fell, by Rohan Sharma, AI impact analyst.
- 0:08SPEAKER_00: Data checked through 29 October 2026.
- 0:11SPEAKER_00: The headlines seemed to clash.
- 0:13SPEAKER_00: The Office for National Statistics estimated that professional, scientific, and technical activities added 51,000 workforce jobs in the year to June 2026.
- 0:25SPEAKER_00: Yet a separate ONS estimate showed 145,000 fewer payroll employees across the UK in August 2026 than a year earlier.
- 0:34SPEAKER_00: Both figures can be true.
- 0:36SPEAKER_00: They cover different dates and count different things, and the 145,000 fall was a provisional estimate that was later revised.
- 0:45SPEAKER_00: The sector added jobs, but most of the increase was self-employment.
- 0:50SPEAKER_00: The ONS's September 2026 Vacancies and Jobs Bulletin reported that professional, scientific, and technical activities had the largest annual increase in workforce jobs of any industry.
- 1:03SPEAKER_00: 51,000 between June 2025 and June 2026.
- 1:09SPEAKER_00: The sector includes areas such as legal and accounting work, management consultancy, architecture and engineering, research, advertising, and veterinary services.
- 1:19SPEAKER_00: But this was not simply a boom in salaried hiring.
- 1:22SPEAKER_00: ONES said 37,000 of the sector's increase came from self-employment jobs, roughly three-quarters of the reported rise.
- 1:30SPEAKER_00: That points to more jobs in the sector being done by self-employed workers, though it does not tell us exactly why they became self-employed or what kind of work they do.
- 1:40SPEAKER_00: The wider jobs picture was modest.
- 1:43SPEAKER_00: The UK had an estimated 36.7 million workforce jobs in June 2026, up 60,000 on the year.
- 1:51SPEAKER_00: Professional and scientific activities led the industry gains, followed by public administration and defence, up 45,000.
- 1:59SPEAKER_00: June 2025.
- 2:01SPEAKER_00: The starting point depends on which release you use.
- 2:04SPEAKER_00: The September 2025 ONS Jobs Bulletin put professional, scientific, and technical workforce jobs at about 3.482 million in June 2025.
- 2:16SPEAKER_00: It also estimated that the UK had 36.8 million workforce jobs overall that month.
- 2:22SPEAKER_00: That older sector figure does not subtract cleanly from the latest sector level.
- 2:26SPEAKER_00: The October 2026 jobs bulletin lists about 3.504 million workforce jobs in the industry in June 2026.
- 2:36SPEAKER_00: Comparing that with the 2025 figure as first published gives a rise of about 22,000, not 51,000.
- 2:44SPEAKER_00: Oh, the reason is that ONS revises historical workforce jobs estimates as data are updated and benchmarked.
- 2:51SPEAKER_00: The current year-on-year comparison implies a revised June 2025 level of roughly 3.453 million, about 3.504 million in June 2026, less the reported 51,000 increase.
- 3:07SPEAKER_00: That is an approximate calculation for rounded published figures, not a separate ONS figure, to compare like with like.
- 3:14SPEAKER_00: Use the 2026 releases revised series rather than mixing it with the level published in 2025.
- 3:21SPEAKER_00: ONS says these jobs estimates can be revised through its annual benchmarking process.
- 3:27SPEAKER_00: The August payroll figure was revised.
- 3:29SPEAKER_00: The 145,000 figure came from ONS's 15 September 2026 PAYE release.
- 3:36SPEAKER_00: It was an early estimate.
- 3:38SPEAKER_00: 30.2 million people were on UK payrolls in August 2026.
- 3:43SPEAKER_00: 145,000 fewer than in August 2025, a fall of 0.5%.
- 3:49SPEAKER_00: ONS warned that August's number was provisional and could change as more data arrived.
- 3:55SPEAKER_00: It did change.
- 3:56SPEAKER_00: In its 20 October 2026 release, ONS revised the August year-on-year fall to 111,000.
- 4:04SPEAKER_00: Its early estimate for September 2026 showed 66,000 fewer payroll employees than in September 2025.
- 4:12SPEAKER_00: So the 145,000 figure is important as the estimate published on 15 September.
- 4:18SPEAKER_00: But it's not the latest estimate for August.
- 4:21SPEAKER_00: Why you should not subtract the two figures?
- 4:24SPEAKER_00: Workforce jobs count jobs, not unique people.
- 4:28SPEAKER_00: The series combines employee jobs from employer surveys with self-employment jobs from the labor force survey, plus jobs in HM forces and government-supported trainee jobs.
- 4:39SPEAKER_00: One person can hold more than one job.
- 4:42SPEAKER_00: Payrolled employees count people with at least one job paid through PAYE.
- 4:47SPEAKER_00: The monthly figure is an average across the days of the month, and the measure does not count self-employed work that is not paid through a payroll.
- 4:55SPEAKER_00: The dates differ too.
- 4:57SPEAKER_00: The workforce jobs figure is for June 2026.
- 5:00SPEAKER_00: Its private sector employee estimates use a reference date of the 12th of June, while the self-employment estimate draws on labor force survey data covering May to July.
- 5:10SPEAKER_00: The payroll figure compares August 2026 with August 2025.
- 5:15SPEAKER_00: A person with a PAYE job and a separate freelance job could be counted as one person in the payroll measure and as two jobs in workforce jobs.
- 5:25SPEAKER_00: That is why subtracting 145,000 from 51,000 would not show the net change in UK employment.
- 5:32SPEAKER_00: More jobs does not mean more vacancies for graduates.
- 5:36SPEAKER_00: A rise in the number of jobs already in place is not the same as a rise in open roles.
- 5:42SPEAKER_00: In its October 2026 bulletin, ONS reported that professional, scientific, and technical activities had 9,000 fewer vacancies in July to September 2026 than a year earlier, a fall of 11.6%.
- 5:58SPEAKER_00: The sector's estimated job total had grown over the year to June, while its reported vacancies later fell.
- 6:05SPEAKER_00: Those figures have different time windows, but together they warn against reading job growth as a hiring boom.
- 6:12SPEAKER_00: For graduates and applicants, the practical message is simple.
- 6:16SPEAKER_00: The sector is large and still changing.
- 6:19SPEAKER_00: But the 51,000 increase does not mean 51,000 new graduate openings.
- 6:26SPEAKER_00: Some of the growth was self-employment, and recent vacancy data show fewer advertised openings.
- 6:32SPEAKER_00: It is worth looking beyond permanent salaried roles to contract work and independent services, but treating those paths as options, not guaranteed routes into work.
- 6:42SPEAKER_00: The AI question: more output, fewer routine tasks.
- 6:47SPEAKER_00: These ONS figures do not show whether AI created jobs, removed jobs, or change the tasks inside them.
- 6:54SPEAKER_00: They track jobs and employees, not AI use.
- 6:58SPEAKER_00: The Bank of England says AI may be most able to automate tasks such as routine administration, handling information, writing documents, and basic analysis.
- 7:09SPEAKER_00: It also notes that many jobs combine tasks, so AI may change a role without replacing the whole occupation.
- 7:17SPEAKER_00: Businesses in its survey expect some employment falls linked to AI in professional and scientific services, but that is a forecast from businesses, not proof that AI caused the changes in these ONS figures.
- 7:31SPEAKER_00: My read, professional work is likely to remain, but firms will have stronger reasons to use smaller teams when AI can handle more routine research, drafting, and analysis.
- 7:42SPEAKER_00: That may make some entry-level tasks harder to sell on their own.
- 7:46SPEAKER_00: The value shifts toward people who bring subject knowledge, check AI output, make sound judgments, and win client trust.
- 7:55SPEAKER_00: The 37,000 rise in self-employment jobs is worth watching, but it does not prove that AI is driving a new wave of solo businesses.
- 8:05SPEAKER_00: It does show why graduates should prepare for more than one route to income.
- 8:10SPEAKER_00: Build a clear specialty, learn to use AI well, and create proof that you can deliver useful work, whether for an employer or a client of your own.
- 8:20SPEAKER_00: The bottom line UK professional scientific and technical workforce jobs rose by an estimated 51,000 between June 2025 and June 2026.
- 8:31SPEAKER_00: The gain came mainly from self-employment jobs.
- 8:34SPEAKER_00: Meanwhile, the 145,000 fall in August payroll employees was a different measure, for a different month, and was later revised to 111,000.
- 8:44SPEAKER_00: These figures are not opposites, and they cannot be added or subtracted to produce one net employment number.
- 8:51SPEAKER_00: They point to a labor market where work is shifting between industries and work arrangements, and where graduates may need to compete for projects and clients as well as payroll jobs.
- 9:02SPEAKER_00: All links to sources are available in the text version of this article.
- 9:06SPEAKER_00: You can find the full article at can't findjob.com/slash blog.
- 9:11SPEAKER_00: Thanks for listening.
- 9:12SPEAKER_00: If today's episode hit close to home, stop scrolling job boards that weren't built for this new reality.
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