How does the global slowdown affect employment in the UK?
Slowdown is the stage in the economic cycle where economic growth slows. The factors that can
affect employment are discussed below.
Employment can be affected negatively due to job losses arising from the increased use of artificial
intelligence. The introduction of AI has meant many jobs that were completed by workers are now
being replaced by AI. This job displacement causes businesses to lay off workers, increasing
unemployment. Jobs like cashiers get replaced by automated self-checkout. This increase in
unemployment means many either further become underemployed or are affected by frictional or
structural unemployment where they are unable to find jobs due to skills mismatch or distance. The
increase in AI means the demand for certain skills like programming and data analysis are wanted
which many workers do not possess hence making it difficult for them to be employed. Even without
the introduction of AI, businesses would try to remain profitable and hence lay off workers to cut
costs. However, this can improve efficiency in businesses as AI tends to work more quickly and
efficiently compared to workers who are prone to human error.
Due to the political uncertainty in relation to Brexit in the UK, growth was slow, and investment was
low. Low investment brings back economic growth as companies are uncertain if their company will
receive a profit from being in the UK. This means potential jobs that could be created are reduced,
increasing unemployment. Not only are businesses uncertain but also consumers. They start to
spend less as consumer confidence decreases meaning demand is low. Consumers become more
cautious of their spending which impacts sectors like retail, hospitality and financial services
potentially leading to job cuts.
Slowdown is the stage in the economic cycle where economic growth slows. The factors that can
affect employment are discussed below.
Employment can be affected negatively due to job losses arising from the increased use of artificial
intelligence. The introduction of AI has meant many jobs that were completed by workers are now
being replaced by AI. This job displacement causes businesses to lay off workers, increasing
unemployment. Jobs like cashiers get replaced by automated self-checkout. This increase in
unemployment means many either further become underemployed or are affected by frictional or
structural unemployment where they are unable to find jobs due to skills mismatch or distance. The
increase in AI means the demand for certain skills like programming and data analysis are wanted
which many workers do not possess hence making it difficult for them to be employed. Even without
the introduction of AI, businesses would try to remain profitable and hence lay off workers to cut
costs. However, this can improve efficiency in businesses as AI tends to work more quickly and
efficiently compared to workers who are prone to human error.
Due to the political uncertainty in relation to Brexit in the UK, growth was slow, and investment was
low. Low investment brings back economic growth as companies are uncertain if their company will
receive a profit from being in the UK. This means potential jobs that could be created are reduced,
increasing unemployment. Not only are businesses uncertain but also consumers. They start to
spend less as consumer confidence decreases meaning demand is low. Consumers become more
cautious of their spending which impacts sectors like retail, hospitality and financial services
potentially leading to job cuts.
