AI to 'create more jobs than it costs', UK wage growth slows, and more top news

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Artificial intelligence will ultimately create more jobs for human workers than it costs, according to a report by PwC. The accounting firm forecasts that AI and robotics will generate 7.2 million jobs over the next 20 years, offsetting the 7 million jobs that could be lost in areas such as manufacturing. While the report acknowledged there will be “winners and losers”, with automation replacing some human workers, it would also see the creation of new roles to ensure productivity.

Wages in the UK rose by just 2.5% between March and May 2018, compared to 2.6% over the previous three months, the Office of National Statistics announced on Tuesday. A total of 137,000 jobs were created in the three months up to May, with unemployment remaining at 4.2%, its lowest since 1975. “We’ve had yet another record employment rate, while the number of job vacancies is also a new record. From this it’s clear that the labour market is still growing strongly,” Matt Hughes, a statistician at the ONS, said.

EU immigration to the UK has fallen to a five-year low. Data from the Office for National Statistics showed the number of arrivals to the UK from the EU fell to 101,000 in the year to December – the lowest level since March 2013. Last week, think tank Global Future warned the decline in immigration numbers since Brexit is already costing the UK economy more than ￡1bn a year. Global Future argued government targets on immigration could cost Britain ￡12bn a year by 2023.

More than a million over 50s are being locked out of the workplace, according to the Women and Equalities Committee. It accused the government of failing to enforce legislation to protect older workers, claiming the skills of those over 50 “are being wasted because of discrimination, bias and outdated employment practices”. The Parliamentary Office of Science and Technology estimates that around a third of the workforce will be over the age of 50 by 2020.

The IMF has downgraded its growth forecasts for the UK, citing the possibility of “negative surprises”. The International Monetary Fund expects GDP in Britain will grow 1.4%, down from the 1.6% previously forecast in April. The IMF’s World Economic Outlook blamed political tensions and weak growth in the first quarter of 2018. The estimates place the UK among the slowest-growing advanced economies. The IMF also sharply downgraded EU growth and warned that trade tensions could cost the global economy ￡324bn.

Idea of the Day: At a certain point in your career, when going for a job interview, what matters most is culture fit, says Gary Burnison, CEO of Korn Ferry.

“Understand what suits you best, from your ideal work environment to the type of boss you want to work for and learn from. The more you know about yourself, the better you can demonstrate fit to your prospective employer.”

This article has been updated. From earlier: Consumer group Which? Has told shoppers participating in Amazon’s 36-hour Prime Day that some items are cheaper at other times of the year and warned consumers to compare prices.

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— Natalie MacDonald