AI shrinks UK entry-level jobs as employers cut hiring for young workers

ISLAMABAD: More than one in three British employers have reduced the number of entry-level jobs available to young workers over the past year, with larger companies increasingly citing artificial intelligence and automation as factors behind the cuts, a survey showed on Wednesday.

The survey for Lancaster University's Work Foundation found that 36% of employers had reduced entry-level positions, including 24% of small businesses, 48% of medium-sized firms and 46% of large employers.

AI and automation were cited as contributing to fewer available jobs by 24% of small firms, rising to 58% among medium-sized companies and 60% among large businesses.

"Young people are entering one of the toughest labour markets in years, facing intense competition for a shrinking number of entry-level jobs and fewer opportunities to get a secure foothold in work," said Ben Harrison, director of the Work Foundation.

The findings are based on a Survation survey of 1,001 businesses conducted from May 7 to May 20.

The pressure is particularly acute for young people, with 73% of employers saying it has become harder for them to find work than five years ago.

Britain's broader labor market has also weakened. The Office for National Statistics estimated that vacancies fell to 707,000 in the three months to May, the lowest level since early 2021.

Job website Adzuna said this week that advertised graduate vacancies fell 45.6% in July from a year earlier to 8,383, the lowest level since it began tracking the data in 2016.

The decline comes as the government faces concerns over the number of young people outside work and education. 

More than 1 million people aged 16 to 24 were classified as not in education, employment or training in the first quarter of 2026.

A UK government report in May warned of the risk of a "lost generation" as young people struggle to enter the workforce.

The findings also highlight a growing concern about AI's impact on the traditional career ladder.

Entry-level roles have often provided young workers with their first opportunity to gain experience and develop skills before progressing into higher-paid positions.

The Confederation of British Industry has urged the government to reverse some planned payroll tax increases and scale back proposed employment-law changes as it seeks to address rising youth unemployment.