Artificial intelligence and automation are reducing opportunities for young workers in the UK labor market, according to a new survey. The Work Foundation at Lancaster University reported that 36% of British employers reduced entry-level positions in the past year, with nearly half of large and mid-sized firms making cuts. Employers cited increased adoption of AI and automation technologies as the primary driver behind the reductions.
The trend coincides with broader labor market pressures. Official figures show that over one million 16- to 24-year-olds in the UK were neither employed nor in education during the first quarter of 2026—the highest level since late 2013. New data for this cohort is scheduled for release on Thursday. The total number of job vacancies in the UK fell to 707,000 in the three months to July, marking the lowest level since spring 2021.
The decline in entry-level roles has been particularly pronounced for graduates. Job portal Adzuna reported a 49% year-over-year drop in advertised positions for university leavers in July. The British government has previously warned of a potential "lost generation" due to persistent youth unemployment. Industry group the Confederation of British Industry (CBI) has urged policymakers to reverse planned increases in payroll taxes and relax upcoming labor law reforms to mitigate the impact on young workers.
