Entry-level jobs plummet as UK businesses turn to artificial intelligence

UK graduates and school leavers face shrinking prospects as entry-level roles drop sharply, driven by businesses´ growing adoption of Artificial Intelligence.

School leavers and recent graduates in the UK are encountering growing challenges as entry-level job opportunities sharply decline, coinciding with the widespread adoption of artificial intelligence technologies by businesses. According to new research from recruitment platform Adzuna, entry-level vacancies—including graduate roles, apprenticeships, internships, and junior posts without degree requirements—have plummeted by nearly a third (32%) since the introduction of ChatGPT in November 2022. These roles now account for just a quarter of the total jobs market, down from nearly 30% only three years ago.

The shift has ignited concerns that companies are increasingly turning to artificial intelligence to streamline operations and cut staffing costs, particularly at the entry level. James Neave, head of data science at Adzuna, emphasized that reducing entry-level hiring is a clear path to greater efficiency and cost savings for businesses. Supporting these findings, a separate report from Indeed recently noted a 33% year-on-year drop in the number of open graduate positions in June, marking the UK’s most competitive entry-level job market since 2018.

Industry experts and business leaders warn that the drop in junior roles could have long-term negative consequences. George Holmes, managing director at Aurora Capital, highlighted that automating these entry points—while beneficial for immediate savings—risks undermining the development of the next generation of skilled workers, potentially resulting in skill shortages and reduced business continuity. Holmes stressed the importance of maintaining pathways for young people to gain experience, arguing that investing in training and talent development is vital for economic resilience.

Meanwhile, a contrasting perspective comes from the PwC Artificial Intelligence Jobs Barometer, which indicates that artificial intelligence can boost profits and even increase worker salaries for those with the right skills. Workers with artificial intelligence expertise earned 56% more in 2024 compared to their counterparts, up from a 25% premium the previous year. However, the report also finds that skill requirements in artificial intelligence-exposed jobs evolve significantly faster than in more traditional roles, making it challenging for workers to keep pace with shifting demands. Notably, PwC suggests that jobs requiring high levels of judgment and creativity are less susceptible to automation, emphasizing the ongoing need for human talent in a digital future.

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