Why Entry-Level Jobs Are Vanishing: The Shocking Truth Behind the 5-Year Low

The Decline in Entry-Level Opportunities

UK entry-level job vacancies have plummeted to their lowest level in five years, creating significant challenges for young workers starting their careers. According to a recent report from recruitment platform Adzuna, roles such as graduate positions, apprenticeships, and other junior jobs fell by 6.8% in July, totaling just 209,778 openings. This represents only 21.9% of all UK job listings, the smallest share since 2019.

Since November 2022, junior roles have decreased by more than a third, and graduate jobs, despite a slight uptick in July, are down over a quarter year-on-year. This sharp decline is driven by multiple factors, including higher employer costs from tax increases and rising wage bills, as well as the growing adoption of artificial intelligence (AI).

Impact of Policy Changes and Economic Factors

Chancellor Rachel Reeves's Budget introduced a £25 billion tax raid, which included hikes in National Insurance contributions for employers and an increase in the National Minimum Wage. These changes have forced businesses to absorb higher payroll expenses, leading to cuts in part-time and lower-paid roles. The hospitality sector has been particularly hard-hit, with UKHospitality estimating nearly 90,000 job losses since October.

The Role of Technology and Shifting Hiring Strategies

Companies are increasingly leveraging AI to automate tasks traditionally handled by junior staff. For instance, major accountancy firms like Deloitte, EY, KPMG, and PwC have reduced hundreds of graduate roles as AI adoption accelerates. This shift is part of a broader trend where employers are favoring contract positions over permanent hires to manage costs. In July, advertised contract roles surged by 22%, while permanent job openings dropped by 9%.

This strategy is most evident in professional services sectors such as accounting, finance, marketing, legal, and consultancy, where businesses rely on flexible labor to avoid long-term commitments.

Sector-Specific Trends and Wage Growth

Healthcare and nursing vacancies have declined for the third consecutive month, with a more than 25% drop since April—the steepest fall of any sector. In contrast, trade and construction saw an 11.7% month-on-month increase in job openings, and retail also experienced growth.

Overall, UK job vacancies decreased by 1.2% in July to 864,705, reversing the strong growth seen in June. However, average advertised salaries rose to £42,264, up 8.75% year-on-year, driven by inflation and higher minimum wage levels.

Andrew Hunter, co-founder of Adzuna, commented on the uneven labor market, noting that while salary growth outpaces inflation, hiring appetite varies widely across sectors. He emphasized that this stop-start pattern is likely to continue until greater stability is achieved.

For young people, the reduction in entry-level opportunities means a more competitive and challenging job market, potentially the toughest in the past half-decade.