Entry-Level Job Crisis: Vacancies Plummet to Lowest in Five Years

Young people are facing the toughest job market since the pandemic, with artificial intelligence and rising hiring costs drastically reducing employment opportunities. According to the latest data from Adzuna, job ads for entry-level roles, including graduates, apprenticeships, and junior positions, fell by 4.5% in July compared to the previous month.

The Impact of Automation and AI

Jim Moore, an employee relations partner, highlighted that tools like ChatGPT are automating mundane tasks traditionally done by junior employees, squeezing out these vital positions. This trend risks cutting off essential talent pipelines, as entry-level roles are crucial for developing future leaders.

Key Statistics and Trends

• Junior roles now make up only 21.9% of all vacancies, a 6.8% decline over the past year.
• Graduate job listings saw a slight monthly increase of 2.5%, but are down 28% compared to July last year.
• Major firms like KPMG and Deloitte have significantly reduced graduate recruitment, with cuts of 29% and 18%, respectively.

Expert Insights on the Shift

Jo Benelisha of Strictly Recruitment noted that employers are favoring job-ready hires over talent development due to automation and cost pressures. However, she emphasized that investing in junior staff builds loyalty, nurtures leaders, and strengthens employer reputation through structured training and mentoring.

Chris Eldridge, CEO of Robert Walters UK and Ireland, advised employers to redesign early-career roles to integrate future skills with AI capabilities, rather than scaling back. He stressed that entry-level positions should not be seen as administrative placeholders but as opportunities to develop future-ready talent.

Broader Job Market Context

Overall UK vacancies fell by 1.24% in July to 864,705, with unemployment at a four-year high of 4.7%. The number of jobseekers per vacancy increased to 1.98, up from 1.84 in June. Permanent job openings dropped by 9% since the minimum wage rise in April, while temporary roles increased by 22%.

Despite the decline in vacancies, average advertised salaries rose to £42,264 in July, up 8.75% annually, outpacing inflation. Andrew Hunter, co-founder of Adzuna, described the market as unstable, with even traditionally stable sectors like healthcare seeing drops in roles.

For more insights, consider listening to the CIPD's podcast on apprenticeships as a key to building talent pipelines.