Why Entry-Level Jobs Are Vanishing: The Toughest Job Market in Generations

The Conservative Party's £5K Tax Rebate Pledge

The Conservative Party has pledged a £5K tax rebate for young people in their first job, known as The First Job Bonus, aimed at helping them buy their first home—if they win the next election. As young people, particularly graduates, face a thinning entry-level job market, leading recruiter Gi Group UK’s Managing Director Pete Taylor suggests this incentive could help address labor market stagnation, but only with coordinated efforts from employers.

Support for Young Job Seekers

Pete Taylor believes any initiative to support young people entering the workforce is valuable. "This isn’t just about financial support; it’s about providing young people with an opportunity to succeed. This could be a boon for those in both employment and getting on the property ladder, especially with house prices skyrocketing."

Challenges in the Entry-Level Market

On the other hand, graduates are encountering a 'bare-bones' recruitment landscape and entry-level role blockers, creating an uphill battle for workforce entry. Taylor notes, "I am a believer that individuals willing to start at the bottom and work their way up will achieve the greatest career success, and this pledge could encourage a mindset of resilient perseverance."

Details of the Political Pledge

The Conservative pledge would provide a £5K tax rebate in a young person's first job, intended for a first house deposit. Shadow Chancellor Mel Stride has outlined plans to reduce government spending by £47 billion if the party wins the next election.

Impact of AI and Market Trends

Taylor highlights that entry-level roles are rapidly being taken over by AI technology, with a consistent reduction in graduate positions limiting labor market entry. "It has never been more challenging for young people to find work—this is the hardest period in several generations for labor market entry. Young people face a generational war against AI advancements and cost-of-living pressures, while businesses deal with rising employment costs."

Strategies for Job Seekers

He emphasizes the importance of exploring all options: "Roles are out there, but not necessarily at larger firms. Candidates should look for opportunities at smaller firms to gain experience and get a foot in the door." Latest data from the Institute of Student Employers shows only a 4% growth in graduate recruitment in 2024, with a forecast of just 1% growth in 2025, the lowest since 2021.

The Role of Recruitment Support

Taylor advises job seekers to "think outside the box" and utilize tools and expert support, such as working with skilled recruiters, to secure roles with longevity and progression. For the pledge to succeed, it requires buy-in from businesses, recruiters, and candidates as part of a nation-wide effort to support young people.

Gi Group's Mission

Gi Group stresses the importance of professional support in recruitment, aiming to match skilled candidates with ideal employers. This pledge is seen as a step toward ensuring candidates receive the right opportunities. Gi Group UK, headquartered in Chesterfield, employs nearly 240 people and serves over 1000 clients across sectors like logistics, industrial, engineering, and automotive.