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Sunak Warns AI Is Flattening Entry-Level Hiring, Proposes Replacing National Insurance With Profit Taxes

He argues a tax switch would make hiring people cheaper than buying AI tools.

Overview

  • Sunak, speaking on BBC Newsnight on Thursday, said CEOs now see “flat is the new up” because AI lets firms grow without adding staff.
  • He proposed phasing out National Insurance, a UK payroll tax on wages, and raising more from corporate profits to lower the cost of employing people.
  • He said entry-level roles are already thinning in law, accountancy and the creative industries, where routine junior tasks are easy for AI systems to perform.
  • He urged “AI literacy” so workers can use the tools, warning people are more likely to lose a job to someone using AI than to AI itself.
  • A UK youth poll cited in coverage found only 36% of 16–29 year-olds expect to be better off than their parents, reflecting rising worry about job security in an AI-driven market.