UK employers reduce entry-level jobs due to AI and automation

A survey by the Work Foundation at Lancaster University reveals that 36 percent of British employers have reduced the number of entry-level positions over the past year, citing increased use of artificial intelligence and automation as primary reasons.

The impact is more pronounced among larger organizations, where nearly half of medium and large companies reported fewer entry-level openings. Specifically, 48 percent of medium-sized and 46 percent of large companies have cut these roles. In contrast, only 24 percent of small businesses reported such reductions.

This trend coincides with a challenging period for young people in the UK labor market. In the first quarter of 2026, over one million individuals aged 16 to 24 were neither in education, training, nor employment, marking the highest level since late 2013. Ben Harrison, director of the Work Foundation, noted that young people are facing intense competition for a shrinking number of roles, making it harder to establish a secure professional footing.

In response to the risk of a ‘lost generation,’ the CBI has urged the government to reconsider planned increases in non-wage labor costs and to mitigate proposed tightening of labor laws to help combat youth unemployment.