The City of London Corporation has issued a compelling appeal to employers, urging them to prioritise the re-skilling of female workers currently outside technical roles. A new report highlights that women in the technology and financial sectors face heightened risks from job losses due to the increasing adoption of artificial intelligence (AI) and automation. Furthermore, it notes that experienced female candidates are often overlooked due to inflexible hiring practices.
Gender Disparities in AI Job Risks
The report reveals that women, particularly those in mid-career stages with a minimum of five years’ experience, are being disproportionately affected by the rise of AI in the workplace. Despite their qualifications, these women are frequently sidelined for digital opportunities within the tech and finance sectors, which have long been male-dominated. The City of London Corporation’s findings indicate that automated CV screening processes often fail to accommodate gaps in employment history, such as those incurred while caring for children or relatives. This rigid approach not only limits opportunities for women but also exacerbates gender imbalances within these industries.
Addressing the Skills Gap
To combat the looming threat of job displacement, the Corporation is advocating for a strategic focus on upskilling women currently in clerical roles—positions that are particularly vulnerable to automation. A staggering estimate suggests that around 119,000 clerical jobs, predominantly held by women, could vanish over the next decade. The report posits that re-skilling these individuals could prevent redundancy costs of up to £757 million, benefiting both companies and their employees.
Upskilling initiatives could shift the focus from candidates’ past technical experience to their potential for future contributions. Alarmingly, up to 60,000 women exit the tech sector each year due to barriers such as insufficient career advancement, lack of recognition, and inadequate remuneration.
Industry Responses and Future Outlook
Dame Susan Langley, the Lord Mayor of London, emphasised the importance of investing in workforce development to harness the latent potential within the female workforce. “By supporting the growth of digital skills, employers can create stronger, more resilient teams,” she stated. This proactive approach not only bolsters individual careers but also positions the UK as a leader in innovation and digital excellence.
Recent surveys indicate that nearly a quarter of UK workers fear job loss within the next five years due to AI advancements, according to a Randstad poll. Union representatives have urged businesses to commit to meaningful investment in workforce training and skill development.
Despite the pressing need for talent, the City of London Corporation highlights a paradox: over 12,000 digital vacancies remained unfilled in 2024. While companies have attempted to attract talent by raising wages above the national average, the report cautions that this strategy alone will not resolve the underlying issues. The widening gap in digital skills is projected to persist until at least 2035, potentially costing the UK over £10 billion in lost economic growth if not addressed.
Why it Matters
The call for re-skilling female workers in technology and finance is not just a matter of equity; it is critical for the UK’s economic future. By empowering women with the skills needed to thrive in an increasingly automated landscape, we can foster a more inclusive workforce that drives innovation and economic resilience. Addressing these disparities today will not only benefit individual careers but also ensure that the UK remains competitive on the global stage, securing its position as a leader in the digital economy.