AI Creating Employment Crisis for Young Graduates, Warns Former PM Sunak

AI Creating Employment Crisis for Young Graduates, Warns Former PM Sunak

Former Prime Minister Rishi Sunak has cautioned the BBC that artificial intelligence is constraining job opportunities for young people entering the workforce, advocating for the elimination of National Insurance contributions to stimulate youth employment.

Currently serving as an adviser to tech companies Anthropic and Microsoft, Sunak acknowledged that while he remains optimistic about AI's transformative potential, the apprehensions voiced by recent graduates pursuing entry-level positions merit serious consideration.

Corporate Leaders Confirm Employment Slowdown

Sunak revealed that business executives are privately disclosing to him that recruitment efforts targeting younger workers are stalling as a result of technological advancement. "There are reasons to be worried and think about the future. But we are able to do something about this," he stated.

The former prime minister pointed out that securing employment has become increasingly challenging for young professionals in sectors including law, accounting, and creative fields. He highlighted remarks from corporate leaders employing the phrase "flat is the new up," indicating their belief that business expansion can continue without substantially expanding their workforce through strategic AI deployment.

Proposed Tax System Overhaul

To address this challenge, Sunak proposed restructuring the taxation framework by phasing out National Insurance requirements and substituting them with levies on corporate earnings. He contended that such revenues would expand proportionally with productivity enhancements generated by AI technologies.

"We should be thinking about, well, how do we tip the balance in favour of AI being used in that positive way… to help people do their jobs better [rather than replacing them]," Sunak told BBC Newsnight.

The former chancellor suggested that numerous nations will require comparable reassessments of their fiscal structures as employment-based tax revenue diminishes and alternative funding sources must be identified.

Safety Concerns Over Advanced AI Models

Sunak's advisory positions, which commenced last year, position him within the technology sector at a critical juncture. This month, Anthropic unveiled Claude Mythos, an advanced AI system that researchers demonstrated can exceed human performance in specific cybersecurity and hacking scenarios.

These capabilities have triggered urgent conversations among regulators, lawmakers, and financial institutions regarding potential threats to digital infrastructure. Sunak underscored that such developments illustrate why "we shouldn't rely on companies to mark their own homework."

He commended Anthropic for enabling Britain's AI Security Institute—established during his premiership—to become the inaugural organization to evaluate Mythos' technical performance.

UK Positioned as Global AI Leader

Sunak also disclosed a collaborative effort with David Lammy, Labour's deputy prime minister, to encourage substantial technology sector investments in the United Kingdom during a recent AI conference.

The Conservative MP expressed enthusiasm for what technology industry participants term "Londonmaxxing" and "Britmaxxing"—characterizations of recent multi-billion-pound capital injections into the sector. "We are an AI superpower any which way you look at it," Sunak declared, highlighting the presence of major enterprises such as DeepMind, Anthropic, and OpenAI across Britain.

He maintained that the UK possesses significant competitive advantages to become the world's most effective implementer of AI technology while cementing its position as a global innovation center.