Rishi Sunak Calls for National Insurance Abolition as AI Flattens Youth Job Market
Former Prime Minister Rishi Sunak has claimed that artificial intelligence (AI) is already leading to a stagnation in the job market for young people. Sunak, who now advises AI firms Anthropic and Microsoft, suggested that governments should consider abolishing National Insurance to make hiring more appealing for businesses.
Sunak acknowledged the concerns of graduates seeking entry-level positions, stating that company executives had privately indicated to him a flattening in the recruitment of younger workers due to AI integration.
Tax System Rebalancing Proposed
“There are reasons to be worried and think about the future. But we are able to do something about this,” Sunak stated. He proposed a rebalancing of the tax system, suggesting the abolition of National Insurance “over time” and its replacement with taxes on corporate profits. These profits, he argued, would be boosted by the productivity and efficiencies gained from AI deployment.
Sunak identified service sectors such as law, accountancy, and the creative industries as areas where young people face increasing difficulty securing employment. He relayed observations from chief executives that “flat is the new up,” with businesses aiming to grow without significantly increasing their workforce through AI adoption.
“They're talking about this concept that they think they can continue to grow their businesses without having to significantly increase employment because they're starting to see how they can deploy AI,” Sunak explained. “That's why I think we do have to look at this issue very seriously and with purpose.”
AI Safety and UK Tech Sector
Sunak, also a senior adviser at investment bank Goldman Sachs, referenced the recent announcement of Anthropic’s new AI model, Claude Mythos, which has shown capabilities exceeding humans in certain hacking and cyber-security tasks. He commented that concerns surrounding Mythos demonstrate that “we shouldn't rely on companies to mark their own homework.”
He credited Anthropic and the UK for the fact that Britain’s AI Security Institute, established during his premiership, was the first to test Mythos’s capabilities. Sunak further revealed a collaboration with Labour’s Deputy Prime Minister David Lammy to promote investment in the UK tech sector, describing the UK as an “AI superpower” and a potential leader in AI utilisation.
