Women working in tech and financial services are at greater risk of losing their jobs due to the increased use of AI and automation than their male peers, according to a report which found that even experienced women are being sidelined as a result of “rigorous recruitment processes”.
According to a City of London Corporation report, “mid-career” women – those with at least five years of experience – are being overlooked for digital roles in the technical and financial and professional services sectors, where they have traditionally been under-represented.
The governing body running the capital’s Square Mile found that female applicants were discriminated against by rigorous and sometimes automated screening of their CVs, which did not take into account career gaps related to caring for children or relatives, or only considered their professional experience.
To reverse the trend, the corporation is calling on employers to focus on re-skilling female workers who are not currently in technical roles, particularly women in clerical positions most at risk of being displaced by automation.
It is estimated that approximately 119,000 clerical roles in the technical and financial and professional services sectors, predominantly held by women, will be displaced by automation over the next decade. The report found that retraining those affected by these job losses could save companies a total of up to £757m in redundancy payments.
The report finds that upskilling the workforce will allow employers to focus on candidates’ potential rather than their previous technical experience. It is estimated that 60,000 women leave their roles in the tech sector each year for reasons such as lack of advancement, lack of recognition, and inadequate pay.
Dame Susan Langley, Mayor of the City of London, said: “By investing in people and supporting the development of digital skills within the workforce, employers can unlock huge potential and build stronger, more resilient teams. Focusing on talent, adaptability and opportunity will ensure the UK remains a leader in innovation and a global center for digital excellence.”
According to a survey by international recruitment company Randstad, recent surveys have shown that almost a quarter of UK workers are worried that their jobs could be lost in the next five years due to AI. Union leaders have called on companies to commit to investing in workforce skills and training.
The City of London Corporation found that women are being overlooked for roles, while difficulties in hiring talent means more than 12,000 digital vacancies remain unfilled in these sectors in 2024.
Companies have tried to deal with the labor shortage by raising wages above the national average, but the report found that higher pay rates will not solve the problem. It warned that the growing digital talent gap is projected to last until at least 2035 and that the UK could miss out on economic growth of more than £10 billion under this scenario.
