AI and Job Cuts Put UK Young Workers at Risk
More than a third of employers have cut entry-level roles for 16-24-year-olds, while AI is eliminating opportunities and automated recruitment adds another barrier to getting hired
Illustration: George Pak via pexels.com
Young people in the UK are facing a shrinking pool of entry-level jobs as employers cut positions and artificial intelligence begins to eliminate some of the roles traditionally used as a first step into the workforce, according to new research from Lancaster University.
More than one in three employers (36%) reduced entry-level jobs for 16-24-year-olds over the past year, according to a Survation survey of 1,001 senior business leaders commissioned by the Work Foundation at Lancaster University. The cuts were reported by 48% of medium-sized employers and 46% of large companies, compared with 24% of small businesses.
AI and automation are also becoming a significant factor. 43% of employers said investment in AI or automation had reduced the number of entry-level roles, rising to 60% among large employers.
The findings come as more than one million 16-24-year-olds in the UK are not in education, employment or training (NEET), the highest level since 2013. Nearly three quarters of employers (73%) described the situation as a “national crisis,” while 76% said employers have a responsibility to do more to help young people enter the workforce.
The squeeze has been developing for years. Work Foundation research published in June found that average weekly “starter” vacancies fell by 49% between 2016-17 and 2025-26. By late 2025, there was just one starter vacancy for every three young people who were NEET.
Recruitment itself is also becoming increasingly automated. Nearly two-thirds of employers prioritize educational qualifications or previous work experience, while 44% use AI or automated systems to screen applications.
Dr. Divya Jyoti of Lancaster University Management School, who led research with young people, said applicants described repeatedly applying for jobs and receiving little or no response.
“Some were left wondering whether their application had been seen by a person at all, or whether they had simply been filtered out by an automated system,” she said.
Ben Harrison, director of the Work Foundation, said young people were entering “one of the toughest labour markets in years,” facing intense competition for a shrinking number of jobs.
The UK government plans to expand its Jobs Guarantee from autumn 2026, offering eligible 18-24-year-olds six months of subsidized paid work alongside employment support. The Work Foundation is calling for the program to create additional, good-quality jobs rather than replace positions lost elsewhere.
For young people trying to get their first foothold in the workforce, the traditional entry point is disappearing just as AI is changing who gets through the door.