Sunak Warns AI Erodes Entry-Level Jobs, Urges Ending National Insurance

Former British Prime Minister Rishi Sunak warned on Wednesday that artificial intelligence is reshaping the job market for young people, particularly by reducing demand for entry-level positions in professional sectors, and urged governments to phase out National Insurance contributions to encourage hiring.

In an interview with BBC Newsnight, Sunak, who now advises AI companies Anthropic and Microsoft, acknowledged that graduates' concerns about finding first jobs are valid amid rapid AI adoption. He said senior business leaders have confided that recruitment trends are flattening, with firms achieving growth without proportionally expanding their workforce. "They're talking about this concept that they think they can continue to grow their businesses without having to significantly increase employment," Sunak stated, describing how AI enables productivity gains through fewer hires. This pressure is most acute in service industries such as law, accountancy, and the creative industries, where junior roles often involve routine tasks that AI tools can handle efficiently.

Sunak, an enthusiast for AI's transformative potential, emphasized that policymakers must act to ensure the...