More than one in three British employers have reduced the number of entry-level jobs available to younger workers over the past year, as artificial intelligence and automation add to pressure on an already challenging labour market, a new survey has found.
The survey, conducted by Survation for Lancaster University's Work Foundation, found that 36% of employers had cut the number of entry-level roles over the past year. The impact was more pronounced among larger businesses, with 48% of medium-sized employers and 46% of large employers reporting reductions, compared with 24% of small businesses.
The findings point to growing challenges for young people seeking their first foothold in the UK labour market, with employers also reporting fewer vacancies overall.
"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.
AI adds to pressure on entry-level hiring
The survey also highlights the growing role of AI and automation in employers' workforce decisions.
While 24% of small businesses said AI and automation had reduced the number of jobs available, the figure rose sharply among larger employers, reaching 58% for medium-sized businesses and 60% for large employers.
Almost half of larger employers also reported having fewer vacancies than they did a year ago, signalling a broader slowdown in hiring beyond entry-level positions.
The pressure is reflected in employers' perceptions of the youth labour market. Some 73% said it was harder for young people to find work than it was five years ago.
The findings are based on responses from 1,001 businesses surveyed by Survation between May 7 and May 20.
UK youth employment concerns deepen
The survey comes amid growing concern about the prospects of young people outside education and employment. A UK government report published in May warned of the risk of a "lost generation" of young people who are not in education, employment or training, commonly referred to as NEET.
More than 1 million people aged 16 to 24 were classified as NEET in the first quarter of 2026, the highest level since late 2013. The latest official figures on youth inactivity are due to be released on Thursday.
The wider UK jobs market has also weakened. Official figures showed that the number of job vacancies in the three months to July fell to 707,000, the lowest level since February to April 2021.
Graduate hiring has come under particular pressure. Job website Adzuna said on Monday that the number of vacancies mentioning graduates in their job descriptions fell 49% in July compared with a year earlier.
Employers call for policy action
Business groups have also raised concerns about the impact of weaker hiring on young workers.
The Confederation of British Industry on Tuesday urged the UK government to reverse some payroll tax increases in October's budget and reconsider planned changes to employment laws, arguing that measures were needed to support hiring and tackle youth unemployment.
The latest Work Foundation findings suggest that the combination of weaker demand for workers and accelerating adoption of AI could make it increasingly difficult for young people to secure the entry-level roles that traditionally provide a pathway into employment.
As businesses continue to automate tasks and redesign jobs around AI, policymakers and employers face growing pressure to ensure that young workers still have access to opportunities to gain the experience and skills needed to progress in the labour market.