Entry-level jobs plummet as UK businesses turn to AI

School leavers and graduates are facing an uphill struggle to get on the career ladder in the UK, with entry-level jobs taking a massive hit since the launch of ChatGPT, crashing by nearly a third (32%) since the launch of the technology in November 2022.

Research by recruitment site Adzuna shows that vacancies for graduate roles, apprenticeships, internships and junior posts with no degree requirement now only make up a quarter of the overall jobs market, down from nearly 30% in just three years.

The move has triggered claims that firms are increasingly using AI as a route to improve efficiency and reduce staff numbers.

Adzuna head of data science James Neave said AI was a major factor: “If you can reduce your hiring at the entry level, that’s just going to increase your efficiency and improve cost savings.”

The figures follow a separate warning from rival recruitment site Indeed, which reported last week that university graduates were facing the toughest job market since 2018. It found the number of roles advertised for recent graduates had fallen 33% in mid-June compared with the same point last year.

In response, Aurora Capital managing director George Holmes said: “The sharp decline in entry-level roles is a red flag for small businesses and the broader economy. While AI tools like ChatGPT can boost efficiency, they also risk removing the first steps people take to build skills and careers.

“For SMEs, entry-level positions are critical for nurturing talent and building business continuity. Automating these roles may offer short-term savings but could lead to long-term skill shortages and a lack of experienced staff in the future.

“The reduced availability of junior roles also limits opportunities for young people to enter the workforce, leading to higher youth unemployment.

“Policymakers and business leaders need to balance the adoption of AI with strategies to develop and retain human talent. Investing in training and creating pathways for young people to gain experience is vital to building a strong and resilient economy.”

The reports are in sharp contrast to a study based on the PwC AI Jobs Barometer, which claimed the technology is actually driving profits by supercharging revenue, careers and salaries across all sectors, including advertising and marketing.

PwC found that workers with AI skills were being paid 56% more than those without knowledge of the technology last year, compared with 25% the year before.

However, it also found that the mix of skills sought by employers was changing 66% faster in occupations most exposed to AI, such as financial analysts, than in those least exposed roles, such as physical therapists. This could mean that workers find it more difficult to keep up with changing demands for new skills.

But PwC did concede said that roles that require “a high degree of judgement and creativity” are unlikely to be able to be automated any time soon because they require “bespoke skills that are quite difficult to replicate on a digital basis”.