Workers more worried about economy than AI, PwC research finds

• UK workers see economic volatility (44%) as a greater threat to job security than AI (37%) over the next three years 
• Cost-of-living pressures are the biggest source of strain on workers - six in ten (59%) say it impacts their work and only a third (35%) have money left at the end of the month 
• Productivity is most affected by fatigue and burnout (29%) and workload pressures (28%), ahead of a lack of skills or training (13%)
• A two-tier workforce is emerging - workers who feel their skills are in demand are far more confident in their job security (74% vs 30%) and ability to find another job (58% vs 19%) creating a talent and upskilling challenge 

Economic uncertainty is weighing more heavily on UK workers than concerns about artificial intelligence, according to PwC's latest UK Hopes & Fears Survey, which reveals growing pressure from rising living costs, job security concerns and workforce strain. 

The survey of 2,023 UK workers found that more than four in ten (44%) see economic volatility as the greatest threat to their job security over the next three years, compared with 37% who cite AI taking on more tasks – with Gen Z more anxious across all these metrics. 

While much debate on the future of work focusing on AI, the research shows many workers are grappling with more immediate economic pressures. Nearly six in ten workers (59%) say the cost of living has impacted their work over the past year - making it the biggest source of strain facing the workforce. Concerns about poor management ethics (44%) and potential job cuts (41%) also rank highly. Of those impacted by the cost of living, almost half (45%) say rising living costs have increased their stress levels, while around a quarter (24%) say it has caused them to work harder or longer hours or consider changing jobs (23%). 

Just over a third (35%) of UK workers say their household can pay all bills and still have enough left over for savings, holidays and extras, down 10% year on year. 

The findings come as government and business look to unlock growth, boost productivity and increase labour market participation ahead of this autumn's Budget. With economic inactivity now firmly at the centre of the UK's growth agenda, policymakers are increasingly focused on keeping more people in work, supporting those impacted by ill-health and improving pathways into employment for young people through initiatives such as the forthcoming NEET Review. The latest Keep Britain Working Review reinforces this opportunity, highlighting the economic benefits of helping more people remain healthy, productive and engaged in work. 

Sarah Moore, Head of Workforce Transformation Consulting at PwC UK, said: 

“Workforce resilience is becoming a critical part of the UK's growth story – especially at a time when economic growth is increasingly dependent on labour market participation, skills and productivity. Economic uncertainty, financial pressure and rapid workplace change are making many workers more cautious about career moves, while rising stress and burnout are weighing on productivity. 

“As government and business consider how to unlock growth and boost labour market participation ahead of this autumn's Budget, the findings suggest that alongside creating more jobs, supporting people to remain productive, adaptable and engaged will be critical to unlocking growth. Employers that invest in workforce talent, skills and progression are likely to be best placed to capture the growth opportunity." 

Emerging skills gap masked by workforce pressures  

Workers remain confident in their ability to adapt to change – with 60% expressing confidence they can learn new skills. However, only half (50%) of these believe they have access to the learning and development resources they need at work.   

As the workforce adapts to new technology and AI, just over one in ten (13%) workers identify a lack of skills or training as a barrier to productivity, despite fewer than half (48%) understanding the skills they will need in the future.  

Workers who believe their skills are in demand are more confident in their job security (74% vs 30%) and ability to find another suitable job (58% vs 19%). They are also nearly twice as likely to be satisfied in their role (80% vs 42%). 

While skills are not widely perceived as a barrier to productivity, workers are more likely to point to day-to-day workplace pressures. Almost a third say fatigue and burnout (29%) and workload pressures (28%) are the biggest barriers to productivity, ahead of poor management or decision-making (25%). 

Sarah Moore added: 

"The findings point to the risk of a two-track workforce emerging. Workers who feel confident about their future are more likely to understand the skills they need, access learning opportunities and see clear pathways for progression. In a rapidly changing world of work, employers cannot afford to take a reactive approach to skills. Organisations need to take a more deliberate approach to talent management, giving people greater clarity on future skills requirements and access to the development opportunities needed to build them. As digital and human skills become increasingly interconnected, this will require a renewed focus on workforce planning, job design and supporting early-career talent to build long-term capability." 

Early-careers challenges 

One in five (20%) Gen Z workers cite a lack of skills or training as a barrier to productivity, compared with 13% of Millennials and 11% of Gen X workers. Younger workers are also more likely to say low motivation or engagement affects their performance, compared to millennials and Gen X who are more likely to point to workload demands and excessive meetings as barriers to getting work done effectively. 

The research shows that Gen Z workers are less confident in their ability to learn new skills than older generations, with just over half (54%) expressing confidence compared with Millennials (65%) and Gen X (61%). Gen Z are also less likely to understand the skills they will need in the future, with fewer than four in ten (39%) reporting confidence in this area, compared with around half of Millennials (51%) and Gen X (49%) workers. The findings come as recent PwC-supported research with the Social Market Foundation highlighted the lasting impact that early-careers skills development and support can have on people’s long-term careers.