More than one in three UK employers have reduced the number of entry-level positions available to young workers over the past year, with artificial intelligence and automation
increasingly cited as factors behind the decline, according to a new survey.
The findings, compiled by Lancaster University's Work Foundation, point to growing difficulties for young people trying to secure their first foothold in the labour market as businesses contend with weaker recruitment demand and rapid technological change.
Overall, 36% of businesses surveyed said they had cut the number of entry-level jobs they offer. The impact was significantly greater among larger companies: 24% of small businesses reported reductions, compared with 48% of medium-sized firms and 46% of larger employers.
Technology was identified as an important part of the shift. Almost a quarter of small businesses said the growing use of AI and automation had contributed to a reduction in available jobs. That proportion increased sharply among bigger employers, reaching 58% of medium-sized companies and 60% of large businesses.
The survey also highlights a broader deterioration in opportunities for young workers. Almost three-quarters of employers — 73% — said they believed it had become more difficult for young people to find work than it was five years ago.
“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 research was based on a Survation survey of 1,001 businesses conducted between May 7 and May 20.
The findings come amid mounting concern about youth unemployment and the number of young people becoming disconnected from both employment and education. A UK government report published in May warned of the potential emergence of a “lost generation” as more young people risk falling outside the labour market.
More than 1 million people aged between 16 and 24 were classified as not in education, employment or training — known as NEET — during the first quarter of 2026. That was the highest level recorded since late 2013. The latest official figures on the number of young people in this category are due to be released on Thursday.
The wider jobs market is also showing signs of weakening. Official figures showed that the number of UK vacancies in the three months to July fell to 707,000, the lowest level since the February-April period of 2021.
The decline has been particularly pronounced in graduate recruitment. Job search website Adzuna reported on Monday that the number of vacancies in July that specifically mentioned graduates in their descriptions had fallen by 49% compared with a year earlier.
Employers' concerns about the cost and flexibility of hiring are adding to the pressure. The Confederation of British Industry called on the government this week to reconsider planned increases in payroll taxes due in October's budget and to moderate proposed changes to employment legislation, arguing that measures were needed to improve employment prospects for younger workers.
The Work Foundation's findings suggest that the challenge facing young people is not simply a temporary slowdown in hiring. As companies invest more heavily in AI and automation, some traditional junior roles may be permanently transformed or eliminated, potentially reducing the number of positions through which workers traditionally gain their first professional experience.
For policymakers, the combination of weaker vacancies, declining graduate recruitment and technological disruption presents a difficult challenge: ensuring that young people can acquire the skills and experience needed to enter a labour market that is changing rapidly while preventing the first rung of the career ladder from becoming increasingly difficult to reach. Photo by Phil Whitehouse, Wikimedia commons.
