AI Job Cuts Hit Britain Hardest, Morgan Stanley Warns of Worsening UK Jobs Crisis

• Morgan Stanley research indicates the UK is experiencing more AI-driven job losses than creation, outpacing international peers.
• British firms reported an 8% net job loss due to AI over the past year, double the international average and highest among surveyed nations.
• Despite UK companies seeing an average 11.5% productivity boost from AI, unlike US counterparts, they are not creating jobs to offset losses.
• The UK's AI job displacement is exacerbated by rising payroll costs, slow growth, and political instability, with unemployment at a near five-year high.
• AI is disproportionately affecting early-career roles and white-collar jobs, with vacancies for AI-impacted occupations dropping 37% since 2022.

Why It Matters: AI is causing significant job losses in the UK, worsening its labor market despite productivity gains.