The CIPD’s latest quarterly Labour Market Outlook report has revealed that a quarter of organisations who are struggling to fill vacancies plan to use automation. The figure has nearly doubled since last summer, when just 13% reported considering using automation to plug gaps – an increase the CIPD attributed to the rise of generative AI tools such as ChatGPT in the past year. The survey of 2,000 employers saw four in 10 predict that AI and automation could increase productivity and efficiency, with a third anticipating cost savings and a fifth expecting enhanced decision making. However, 36% of employers see privacy and security concerns as the main drawback for implementing generative AI in their workplace. This particularly evident among employers who have banned its use. The report also uncovered the extent of shortages in the workforce, finding that as many as 41% of employers had ‘hard to fill’ vacancies. This figure stood at 51% in the public sector, compared to 38% in the private sector.
For over two years, our Labour Market Outlook data has shown discrepancies in future pay awards between the public and private sector. This quarter, the gap has closed and future pay intentions in both sectors are aligned.
Hard-to-fill vacancies are still common – this is forcing employers to look ahead at ways to improve their productivity and efficiency to negate the need to fill certain roles.
Enter generative AI - a potential game changer, offering increased productivity and efficiency. Many employers see AI as more of an opportunity than a risk. Yet, there's caution. Privacy and security concerns are prevalent, especially among those who've opted to ban its use.
Read on for our latest labour market data and analysis on employers’ recruitment, redundancy and pay intentions this autumn.