More than 1 in 3 UK employers cut entry-level jobs amid rise in AI investment: Survey

Nearly 3 in 4 employers say level of young people not in education, employment or training is a ‘national crisis’

More than one in three UK employers have reduced the number of entry-level jobs available to young people aged 16-24 over the past year, according to a new report released Wednesday. An analysis of a Survation survey of 1,001 senior UK business leaders, commissioned by the Work Foundation at Lancaster University, found that 36% had reduced entry-level jobs for young people over the past 12 months. Almost half of medium-sized (48%) and large employers (46%) reported cuts, compared with 24% of small employers, according to the study. Meanwhile, nearly three-quarters (73%) said the number of young people not in education, employment or training (NEET) was a “national crisis,” while 76% said employers had a responsibility to do more to support young people into work. “Just over two in five employers (43%) report having invested in AI or automation that has reduced the number of entry-level roles available, rising to 60% among large employers.” Following the findings, researchers called on the government to press ahead with reforms aimed at making work more secure, create additional good-quality jobs and provide practical, local support to employers to help them hire, particularly smaller firms. The survey also found that just over two in five employers (44%) had used AI or automated systems to screen applications, while 43% said investment in AI or automation had reduced the number of entry-level roles. “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 at Lancaster University. Harrison warned that the challenge was not simply about providing young people with more employment support, but also about the decline in available opportunities, particularly for those living in weaker local labor markets where options are more limited.