NFER and IFS Warn AI‑Driven Job Losses Could Widen Inequality Without Targeted Support

Analysis of AI‑driven labour market shifts warns that, without deliberate educational and policy efforts, displaced low‑skilled workers risk being left behind.

In the last 48 hours, independent reports from the National Foundation for Educational Research and corroborating analysis by the Financial Times have illuminated the societal risks of rapid AI‑driven job displacement. With up to three million low‑skilled jobs at stake by 2035, experts warn that without targeted upskilling and educational reform, the most vulnerable workers will struggle to access emerging opportunities, exacerbating inequality.

The NFER’s projections are stark, showing declines particularly in sales, customer service, and manual roles. The gap between job losses and gains in high‑skilled areas underscores a structural divergence in the labour market. The analysis emphasises that reskilling pathways and support systems are neither widespread nor robust enough to mitigate the disruption.

The Institute for Fiscal Studies adds to the alarm, criticising the government’s current skills strategy as lacking coherence, clarity and sufficient funding. The combined message is clear: without coordinated policy responses and investment, millions risk falling into persistent unemployment or underemployment, deepening socio‑economic divides.

These developments serve as a societal wake‑up call. While AI may drive economic growth, its benefits are not guaranteed to be inclusive. To prevent widening inequality, urgent action is needed—from redesigning education to reskilling programmes and policy frameworks that centre fairness and accessibility.

AI’s societal promise depends on our willingness to equip every worker with the chance to thrive.

This article has been generated by AI.