Nearly 36% of British employers reduced entry-level positions over the past year, with the share rising to nearly half at large and mid-sized firms, according to a survey published Wednesday by Lancaster University’s Work Foundation.
The decline reflects a broader contraction in the UK labor market, where employers cited increased adoption of artificial intelligence and automation as the primary driver. The trend has intensified competition for a shrinking pool of entry-level roles, leaving young workers facing one of the toughest job markets in years, Work Foundation Director Ben Harrison said.
Official figures show that over 1 million people aged 16 to 24 were neither in employment nor education in the first quarter of 2026, the highest level since late 2013. New data for the group is scheduled for release on Thursday. Total job vacancies in the UK fell to 707,000 in the three months to July, the lowest since spring 2021.
The decline in entry-level roles has been particularly sharp for university graduates, with job postings on the Adzuna portal dropping 49% year-over-year in July.
The British government warned in May of a potential 'lost generation' amid rising youth unemployment. The Confederation of British Industry has urged policymakers to reverse planned increases in payroll taxes and relax upcoming labor law reforms to mitigate the impact on young workers.
The survey underscores the structural challenges facing the UK labor market as technological disruption reshapes hiring patterns across industries.
