David Bharier

It would be the understatement of the year (decade? Century?) to say that AI is beginning to disrupt labour markets. Tech startups are learning they can swap out entire teams of software engineers for a single coder armed only with a Claude subscription. As models get better, and as founders work out how to integrate tools into their businesses, the pace of change will only quicken. There are signs this is showing up in official data (see attached). Slightly more new businesses were born in Britain in 2025 compared to 2024, but the number of people they employed is down from 3.2 to 2.7 on average. Compared to 2017, startups are now employing nearly one less worker in their first year of operations. Despite this, I'm far from convinced that we can lay all the blame for current labour market headaches at AI's doorstep. Founders will need no reminding that tax rises in @RachelReevesMP's past two Budgets have hiked up the cost of employing people. Coupled with... 📈 above-inflation increases to the minimum wage 🧊 the chilling effects of the Employment Rights Act 📉 the crackdown on immigration ⛈️ and the general sentiment of doom and gloom around the economy... ... it's hardly surprising that firms are hesitating to take on new workers. Certainly, that's what founders are telling @tenthink through our surveys, and anecdotally too. It was great (not sure if that's the right word, but oh well) to get this off my chest talking to @irinaanghel12, and to be quoted alongside some other wise heads! (cc: @timothy_barnes, @davidbharier)