AI Raises The Stakes: Why It’s Getting Harder To Get An Entry-Level Job In UK

Last Updated:August 16, 2026, 19:26 IST

The youth unemployment rate in Britain has risen to 16.4%, the highest in a decade and faster than in any other G7 country, according to a report.

Young graduates in the UK are struggling to get jobs due to the AI boom. (AI-Generated)

The advent of artificial intelligence has sparked concerns about the future of employment worldwide. The situation is particularly taking a turn for the worse in the UK, where young professionals are struggling to get an entry-level job amidst a tough economy.

According to a report by Bloomberg, the youth unemployment rate has risen to 16.4%, the highest in a decade and faster than in any other G7 country. The UK government has scrambled to control the situation by providing grants to employers to take on young workers.

Georgie Blackburn, a Gloucestershire-based career coach, says entry-level jobs now cost up to £750 (Rs 96,880) and may direct people to volunteer work, internships and online courses, while education degrees are becoming more irrelevant.

Why Are Jobs Disappearing?

The recent job losses have much to do with the current global economic slump caused by US President Donald Trump’s war against Iran and the Labour government’s recent tax hike and increasing minimum wage.

However, they have been mostly impacted by the rise of AI, which has led to job cuts in several prominent companies. This has left young graduates with little to do other than spend hours going through documents or formatting slides.

The reduction of entry-level jobs due to AI has posed a problem for many firms, which may not have enough people to promote into management positions. However, employers have increasingly turned to AI to reduce costs, particularly impacting junior roles.

What’s Happening In UK?

Due to job losses, one-third of young graduates in Britain have taken on unpaid work, accepted jobs below their qualifications or worked outside their preferred career to gain experience, according to a survey. This trend points towards an AI-led desperation among youngsters, who are struggling to get jobs despite spending millions in education.

A 24-year-old research assistant proposed a policy that involves young graduates ceding 1% of future earnings to companies that hire them in their first five years in the workforce, even after they leave the company. Normally, it would invite backlash, but now it is being considered by some of the recent graduates.

Key Questions Answered

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Will AI continue to worsen youth unemployment in the UK?

AI is contributing to the worsening youth unemployment in the UK, as it has led to job cuts in several prominent companies and made it harder for young professionals to secure entry-level positions. The rise of AI has particularly impacted white-collar sectors like marketing, administration, finance, and IT, where AI tools can handle routine tasks traditionally performed by entry-level employees.

What policies could help UK graduates find entry-level jobs?

The UK government has implemented policies such as providing grants to employers to hire young workers and expanding a jobs-guarantee scheme that subsidises minimum-wage roles for young people claiming unemployment benefits. There is also a proposal for young graduates to cede a percentage of their future earnings to companies that hire them for their first five years.

How does the UK’s job market compare to other G7 nations?

The UK’s youth unemployment rate has reached 16.4%, which is the highest in a decade and is rising faster than in any other G7 country.

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About the Author

Aveek Banerjee

Aveek Banerjee is a Senior Sub Editor at News18. Based in Noida with a Master’s in Global Studies, Aveek has more than three years of experience in digital media and news curation, specialising in int…Read More

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