Why Starting a First Job Is Becoming Harder and Costlier in the UK

Starting a career in the UK is becoming increasingly difficult for young people, with artificial intelligence changing the way employers approach entry-level hiring and reducing opportunities to gain initial work experience.

Career coach Georgie Blackburn, who has worked with professionals for around two decades, said young people who have recently graduated now make up a much larger share of her clients. Her early-career services, which can cost as much as £750, may recommend volunteering, internships and online courses to help graduates build practical experience.

The pressure is particularly strong in the UK, where youth unemployment has reached 16.4%, its highest level in a decade. The graduate wage advantage over the minimum wage has also fallen significantly since 2007.

The UK government has responded by increasing financial support for employers hiring young workers. Its jobs-guarantee programme provides subsidies for minimum-wage positions for people aged 18 to 24 who have been receiving unemployment benefits for at least 18 months. A separate £3,000 grant is available to employers hiring young people who have been unemployed for a shorter period.

The government is also planning changes to vocational training, with an emphasis on giving greater value to practical skills alongside university education.

Entry-level positions have traditionally been among the first affected during economic downturns. However, the current situation is also being influenced by the rapid adoption of artificial intelligence.

AI tools can now handle many routine tasks that were previously assigned to junior employees, including document reviews and presentation formatting. As a result, graduates may find it harder to demonstrate value when they have limited experience beyond these basic responsibilities.

While supporters of AI argue that automation could allow junior employees to focus on more valuable work, concerns about declining entry-level opportunities are growing among businesses. An Accenture report found that the proportion of business leaders expecting AI to reduce entry-level positions has doubled over two years to 40%.

The reduction in junior hiring could also create difficulties for companies in developing future managers. For now, however, economic pressures and uncertainty about the impact of AI are encouraging businesses to focus on controlling costs.

Banks and consulting companies are reducing the size of graduate recruitment programmes. Some financial firms are also using AI to handle work that previously required several junior analysts. A King’s College London study found that job reductions at companies with greater exposure to AI were largely concentrated among junior workers.

Many young people are consequently taking alternative routes to gain experience. A LinkedIn survey found that one-third of young people in the UK had accepted unpaid work, taken jobs below their qualifications or worked outside their preferred career to build experience.

Some experts have suggested shifting more training to the period before employment rather than relying heavily on learning while working. One proposal would allow young people to finance their entry into the workforce through an arrangement similar to student loans, with a portion of future earnings paid to their initial employer over a set period.

For recent graduates facing lengthy recruitment processes and limited opportunities, such approaches could become an increasingly important part of the debate over how young people enter the workforce.