AI and Automation: 3 Million Jobs at Risk by 2035

Key Findings

A recent report by the National Foundation for Educational Research (NFER) suggests that approximately three million jobs could be lost over the next decade due to the increasing adoption of AI and automation. The report highlights that sectors such as administrative, secretarial, customer service, and machine operation are particularly vulnerable to these changes.

Accelerating Labor‑Market Shifts

The pace of these labor market shifts is accelerating, with changes occurring up to three times faster than previously anticipated. This rapid transformation poses a significant threat not only to current workers in these fields but also to young people entering the job market without the necessary skills and qualifications for high‑skilled roles.

Essential Employment Skills

The NFER report emphasizes the importance of “essential employment skills” that are expected to become even more crucial in the coming decade. These skills include:

  • Collaboration
  • Communication
  • Creative thinking
  • Information literacy
  • Organising, planning, prioritising
  • Problem‑solving
  • Decision‑making

Growth Outlook for Professional Roles

While the total number of jobs in the labour market is projected to grow by 2035, most of this growth is expected to be in professional and associate‑professional roles—such as positions in science, engineering, and legal fields—that rely heavily on the essential skills listed above.

A Critical Challenge

Jude Hillary, one of the authors of the NFER report, describes the necessary changes as a “critical challenge” that must be addressed proactively. The report calls for a collective response from government, employers, and the education system to:

  • Strengthen support in early education
  • Tackle inequalities in schools
  • Rebuild the adult skills system to ensure inclusive growth

Risks of Skills Shortages

A shortage of skilled workers in high‑demand fields could hinder economic growth, while AI‑driven changes at the lower end of the job market may lead to significant job losses. To mitigate these risks, the report recommends that schools, employers, and the government collaborate to clearly define, promote, and teach essential employment skills. Providing retraining opportunities is also crucial to prevent individuals from being trapped in declining jobs.

Conclusion

The coming decade will see both disruption and opportunity. By focusing on essential employment skills and coordinated action across education, industry, and policy, societies can turn the challenge of AI‑driven automation into a pathway for inclusive, high‑skill growth.