The UK job market is showing signs of division as demand for AI skills surges while postings for traditional knowledge work decline. According to Indeed’s Hiring Lab, AI-related job postings have risen sharply, with 9.4 percent of all UK job listings mentioning AI by late June 2026, up from about 2 percent in 2023. This trend highlights a growing split in the labor market, where AI skills are becoming a standard requirement across multiple industries.
AI proficiency is now expected in roles beyond technology, including marketing, finance, and media. Nearly half of all data and analytics and software development job postings now mention AI. The trend has also spread to scientific research, IT systems, and even banking and arts. However, AI mentions remain low in sectors requiring physical presence, such as beauty and wellness, care, and driving services.
The shift reflects a broader trend where employers are prioritizing AI skills over traditional expertise. Indeed notes that overall job postings in knowledge work sectors have dropped by 11 percent since early 2026, yet AI-related listings continue to rise. This has created what the company calls a 'two-speed labor market,' where demand for AI skills is growing rapidly despite a decline in overall hiring.
Source: thedecoder
