UK's job market is splitting in two as AI demand surges while knowledge work postings crater

AI now appears in 9.4 percent of British job postings, up from about two percent in 2023, according to a new analysis. Overall hiring is falling across many knowledge work sectors, creating what Indeed calls a "two-speed labor market."

AI has become a standard requirement in job listings. By late June 2026, 9.4 percent of all UK job postings mentioned AI or related tools and software, according to the Indeed Hiring Lab, up from about two percent in 2023.

AI skills now expected well beyond tech roles

Data & Analytics leads with 48.8 percent, followed by Software Development at 46.7 percent. Nearly half of all listings in both fields now mention AI.

But the trend has pushed far beyond those categories: Employers across a wide range of industries now expect candidates to have some level of AI proficiency. AI shows up in 30.7 percent of IT Systems & Solutions listings, 28.1 percent of Scientific Research & Development postings, 26.2 percent of Marketing roles, and 22.4 percent of Media & Communications jobs. Banking & Finance (16.9 percent) and Arts & Entertainment (16.3 percent) have crossed into double digits too.

Jobs that require workers to be physically present unsurprisingly sit at the bottom of the list. Beauty & Wellness, Care, Cleaning, and Driving Services all have AI mention rates below one percent, according to Indeed.

AI skills are gaining value as knowledge work hiring falls

Total job postings are dropping across many knowledge work categories, yet AI-related listings in those same fields keep climbing. Indeed interprets this as a sign that employers are placing AI skills on par with, or even ahead of, traditional expertise. The outcome, according to Indeed, is a "two-speed labor market" where overall volume is weak but demand for proven AI skills is growing fast.

The split is sharpest in Human Resources, Accounting, Management, Marketing, Project Management, and Banking & Finance. In marketing, the AI job posting index sits at 341 while the overall index has dropped to 52. Management shows a similar divide at 344 versus 78.

Job searches show the same shift. Searches for AI roles have grown sevenfold since ChatGPT launched, according to Indeed. Workers seem to grasp where the market is going and are adjusting accordingly.

"Engineer" (6.4 percent) and "Trainer" (5.6 percent) are the terms job seekers most often combine with "AI." Indeed says younger workers and career starters are actively seeking structured paths into the AI economy. Search volumes have dipped from recent peaks over the past few months, though the pullback may just be a blip against the broader upward trend.

The AI hiring boom contrasts sharply with the broader UK job market. Postings across Britain have fallen 11 percent since the start of 2026 and now sit 32 percent below pre-pandemic levels. Younger workers are feeling the squeeze most: Graduate listings are at their lowest seasonal level since the pandemic, and youth unemployment has hit its highest point in over a decade.