Up to 3M UK jobs could vanish due to AI according to a NEFR report

NFER report warns of job displacement in low-skilled roles by 2035. Here’s how marketers and employers should respond

Up to 3M UK jobs could vanish due to AI according to a NEFR report

A new report warns that automation and artificial intelligence could eliminate up to three million low-skilled jobs in the UK by 2035. The findings come from the National Foundation for Educational Research (NFER), which says that occupations in administration, machine operations, customer service, and trades are most at risk.

While this isn’t the first time a forecast has predicted AI-fueled job loss, the difference here is focus. Instead of targeting white-collar roles like software engineers or legal consultants, often cited in previous research, this report highlights roles further down the skills ladder. It argues that these positions, which already face limited upskilling paths, are most vulnerable as technology progresses.

This article explores NFER’s findings, the strategic implications for marketers and employers, and how businesses can respond as the labour market shifts toward higher-skilled roles.

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What's new in the NFER report

The report, part of a five-year research program called The Skills Imperative 2035, is based on economic modelling supported by the Nuffield Foundation. It predicts that between 1 and 3 million UK jobs, mostly in declining occupations like secretarial work, basic admin, and machine operation, could vanish over the next decade due to AI and automation.

Despite this, total employment in the UK is expected to grow by 2.3 million jobs, mainly in professional and associate professional roles across science, engineering, and legal sectors. These roles demand what the report identifies as "Essential Employment Skills" (EES), such as:

  • Communication
  • Collaboration
  • Problem-solving
  • Planning and prioritisation
  • Creative thinking
  • Information literacy

The bad news? A separate analysis estimates 3.7 million workers already fall short in these six essential skill areas, a number projected to nearly double by 2035 without major intervention.

Why low-skilled roles are in AI's crosshairs

Unlike white-collar jobs that often require nuanced decision-making or creative judgment, many low-skilled tasks are highly repeatable. That is exactly what AI and automation are built for. This shift does not just displace workers, it polarizes the labour market. You get growth at the top, stagnation or loss at the bottom.

Jude Hillary, the report’s lead author and Co-Head of UK Policy at NFER, says that many of the new jobs being created demand skill levels that displaced workers often do not have. Without strong pathways for upskilling, these individuals risk being left behind. Worse still, skills gaps often start in early childhood and widen over time, meaning the reskilling challenge is not just professional, it is societal.

These findings challenge recent narratives suggesting that AI primarily disrupts high-paid, high-skilled jobs. It also highlights the difference between short-term layoffs, which may be driven by economic conditions, and long-term displacement driven by automation.

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What marketers and hiring leaders should know

This is not just a policy problem. It is a brand, marketing, and employer branding issue too. Here’s why:

1. The skills you need may already be scarce

Roles demanding creative problem-solving and collaboration are growing, but the workforce is not keeping up. That impacts your talent pipeline and your ability to scale. If your marketing team needs data-literate creatives or adaptable campaign strategists, expect rising competition and slower hiring.

2. Reskilling is now part of employer branding

Whether you are hiring for growth or retention, job candidates are increasingly looking for reskilling pathways and development support. Marketers managing employer brand or recruitment campaigns should emphasize L&D benefits now, not later.

3. Segment messaging around skills confidence

The NFER-backed YouGov poll found that while 65% of working adults think they will keep up with skill changes, only 24% feel the UK government supports them in doing so. This gap in confidence is an opportunity for brands that offer clear, credible support programs for skills development, especially in B2B sectors.

4. Ethical marketing needs to reflect workforce reality

If your campaigns focus on AI as a growth story, be mindful of the broader labour impact. Messages that only celebrate automation may backfire if they ignore the human costs or brand responsibilities that come with it.

Strategic moves for future-proofing your workforce

Marketers and business leaders should act now to stay ahead of this talent disruption. Here are key strategies:

  • Audit your internal skill base

Use tools like LinkedIn Skills Insights or internal HR analytics to assess gaps in EES areas.

  • Align L&D with market demand

Prioritize training in planning, collaboration, and data literacy. These are core EES that support both marketing and operational roles.

  • Refresh brand positioning

Show how your company supports not just AI innovation but inclusive job growth. This matters in both customer and employer messaging.

  • Partner with education initiatives

Whether through CSR programs or talent funnels, backing early-years and vocational education efforts can future-proof your brand and help solve the long-term reskilling crisis.

AI’s impact on the workforce is not abstract. It is starting to show up in layoff announcements, reskilling shortages, and polarizing job market trends. As NFER’s report makes clear, the biggest threat may not be job loss in elite professions, but the erosion of roles that underpin everyday economic stability.

For marketers, this is a signal to rethink both talent strategy and how you position AI-driven change in public messaging. The brands that will win are those that build trust while building skills.

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