Job listings for professional roles in London's Square Mile—coders, lawyers and analysts—have dropped off sharply, according to a report. As generative AI automates more work, hiring for new-graduate and entry-level positions is being held back, the analysis suggests.
The Square Mile · UK Labour Market
AI Is Quietly Thinning Out London's White-Collar Jobs
Hiring for AI-exposed roles — coders, lawyers, analysts — has dropped sharply across London's financial district, putting the UK at the leading edge of an AI-driven jobs shift. Entry-level and junior roles are taking the first hit.
−8%
UK firms' net hiring decline over the past 12 months — among the highest of any major developed economy
46%
London workers (~2.4M) who could have part of their tasks automated — above the 38% national average
~10%
Clifford Chance London back-office cuts (up to 50 roles), citing rising AI use as one factor
AI-exposed jobs are falling roughly twice as fast
Decline in job postings over a 3-month window (McKinsey UK)
−38%
Highly AI-exposed
Who is exposed in London
1M+
roles "highly or significantly exposed"
300K+
managerial jobs among them
748K
IT, data analysis & secretarial roles
Junior staff hit first: entry-level roles down 5.8% at high-AI-exposure firms, with hiring appetite down 16.3 points — young workers and women face relatively higher risk.
THE CONCERN
Vacancies are down by more than a third (~500,000 roles) since 2022, with a fifth concentrated in AI-exposed sectors. Narrowing entry pathways for juniors and rising reskilling costs loom as key challenges.
THE COUNTERPOINT
Economic uncertainty — not direct AI replacement — may be the main driver; direct substitution is hard to confirm in the data. London keeps growing as a European AI hub, with AI reshaping how work is done.
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