Full Breakdown
UK Employers Cut Entry-Level Jobs as AI Adoption Rises
8/28/2026, 12:54:58 AM
Core Findings
A Survation survey of 1,001 senior UK business leaders, commissioned by the Work Foundation, found 36% of employers reduced entry-level positions for 16-24-year-olds in the past 12 months. Reductions were highest among larger firms: 48% of medium-sized and 46% of large employers, versus 24% of small employers.
Background & Context
Seventy-three percent of respondents called the rise in NEET (not in education, employment or training) a national emergency, and 76% said employers should help. Government data released in early 2026 recorded over 1 million 16-24-year-olds classified as NEET, the highest level since 2013.
Data & Statistics
| Metric | Figure |
|---|---|
| Employers cutting entry-level jobs (overall) | 36% |
| Medium-sized firms cutting jobs | 48% |
| Large firms cutting jobs | 46% |
| Small firms cutting jobs | 24% |
| Employers saying AI/automation reduced entry-level roles (overall) | 43% |
| AI impact – medium firms | 58% |
| AI impact – large firms | 60% |
| Firms using AI to screen applications | 44% |
| Graduates-focused vacancies (Adzuna, July) | ? 49% YoY |
| Employers offering placements/apprenticeships | 59% |
Official Statements & Responses
- Ben Harrison, Work Foundation director, warned that “young people are entering one of the toughest labour markets in years, facing intense competition for a shrinking number of entry-level jobs.”
- Dr Divya Jyoti, Lancaster University, highlighted a “double pressure” on youth: fewer entry-level hires and growing AI-driven screening.
- The Confederation of British Industry (CBI) urged the government to reverse recent payroll-tax increases and reconsider planned employment-law changes to sustain hiring.
- Work Foundation researchers called for maintaining job-security reforms, expanding a Jobs Guarantee scheme, and providing local support for smaller firms.
Criticism & Opposition
The CBI argues that recent fiscal measures and upcoming employment-law reforms could further dampen hiring, especially for smaller employers who need flexibility to create entry-level roles.
On-the-Ground Reports
Job-search platform Adzuna reported that vacancies mentioning “graduates” fell 49% in July year-on-year, highlighting the contraction of opportunities for recent school and college leavers.
Conflicting Reports & Gaps
The survey shows two AI impact figures: 43% of all employers say AI/automation reduced entry-level roles, while 58% of medium-sized and 60% of large firms report the same effect. No breakdown is provided for small firms beyond the overall 24% reduction figure.
Verbatim Quotes
- “Young people are entering one of the toughest labour markets in years, facing intense competition for a shrinking number of entry-level jobs and fewer opportunities to get a secure foothold in work,” — Ben Harrison, Work Foundation
*The findings were released on 26 August 2026 and are based on responses collected between 7 May and 20 May of the same year.*
