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AI is flattening the jobs market for young people, says Sunak
Rishi Sunak argues that AI is making it harder for graduates to secure entry-level roles, especially in service sectors, and proposes tax reform to offset potential revenue losses. He remains an advocate for AI while urging policy actions and highlighting UK leadership in the tech sector. The remarks follow his advisory roles with Anthropic and Microsoft and reference recent AI developments, including Anthropic's Claude Mythos.
Why It Matters
The remarks spotlight evolving labor-market dynamics as AI adoption grows, and signal potential policy shifts in taxation and regulation to sustain public revenue and growth.
Timeline
5 Events
Sunak comments on AI flattening youth jobs market and proposes tax changes
April 22, 2026
Sunak, now an adviser to Anthropic and Microsoft, said the recruitment of young people is flattening due to AI and that it is tougher for graduates to get entry-level jobs in service sectors such as law, accountancy and the creative industries. He described 'flat is the new up' as CEOs plan growth with less employment and called for serious action, including rebalancing the tax system by abolishing National Insurance 'over time' and replacing it with taxes on corporate profits, boosted by productivity from AI deployment. He noted that many countries will need to adjust to lower revenue from employment taxes.
Sunak teams with David Lammy to promote UK tech at AI summit
April 2026
Sunak joined forces with Labour deputy prime minister David Lammy to promote investment in the UK tech sector at a recent AI summit.
Anthropic announces Claude Mythos in April 2026
April 2026
Anthropic announced its new AI model, Claude Mythos, in April 2026. The company said Mythos can outperform humans at some hacking and cyber-security tasks, prompting regulatory and industry discussions about the risks it could pose to digital services.
Sunak appointed adviser to Anthropic and Microsoft in 2025
2025
Sunak was appointed as an adviser to both Anthropic and Microsoft in 2025, reflecting his ongoing involvement with major AI players.
AI safety summit established during Sunak's premiership in 2023
2023
During his time as UK prime minister, Rishi Sunak made tech regulation a significant priority and set up an AI safety summit in 2023.