Experts Warn of 'Lost Generation' as AI Replaces Young Workers
'Lost generation' warning as thousands of young workers to be replaced by AI robots

Image: Dailystar Co Uk
Experts predict that nearly 20% of young workers in the UK will be replaced by AI robots next year, leading to a rise in youth unemployment to 17.8% by mid-2027. The British Chambers of Commerce highlights the need for urgent reforms to prevent a 'lost generation' of workers.
- 01Youth unemployment is expected to rise to 17.8% by mid-2027 from 16.9% this year.
- 02The British Chambers of Commerce (BCC) attributes this increase to AI adoption and higher payroll taxes.
- 03Total unemployment in the UK is forecasted to reach 5.5% next year, up from 5%.
- 04The Middle East conflict is identified as a significant economic drag, contributing to a projected 2.2% drop in business investment this year.
- 05Former health secretary Sir Alan Milburn calls for urgent reforms in education, welfare, and the job market to avoid a potential youth unemployment crisis.
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A report from the British Chambers of Commerce (BCC) warns that nearly 20% of young workers in the UK may be replaced by AI robots next year, exacerbating youth unemployment. The unemployment rate among young people is projected to rise to 17.8% by mid-2027, up from 16.9% this year. Factors contributing to this increase include the adoption of AI tools for tasks traditionally performed by entry-level workers and rising payroll taxes. David Bharier from the BCC emphasized the need for reforms to prevent a 'lost generation' of workers, highlighting that while the UK economy is not in recession, it remains trapped in a cycle of interrupted recovery. The report also forecasts total unemployment to reach 5.5% next year and discusses the impact of the Middle East conflict on business investment, which is expected to decline by 2.2% this year. Sir Alan Milburn's government-commissioned review calls for an overhaul of the education and welfare systems to avert a youth unemployment crisis that could see numbers soar to 1.25 million by the early 2030s.
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The rise in youth unemployment could weaken the UK's workforce and economy.
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