Young job seekers are facing increased challenges in the employment market, with artificial intelligence screening out many applicants before human recruiters can review their applications. This trend, coupled with a reduction in entry-level positions, is contributing to what some describe as a "national crisis" for young adults.
A report from the Work Foundation, a think-tank based at Lancaster University, indicates that 36 percent of firms have decreased the number of entry-level jobs available to individuals aged 16 to 24 in the past year. Furthermore, 73 percent of firms believe the rising rate of worklessness among young people constitutes a national crisis.
AI is playing a role in this shift, with 43 percent of companies reporting investments in technology that has led to a reduction in entry-level roles. AI is also being utilized for applicant screening by 44 percent of firms, a figure that rises to 60 percent for larger companies with 250 or more employees.
Divya Jyoti of Lancaster University Management School highlighted the "worrying pressure" on job seekers, noting that many young people report applying for jobs with little to no response, leading to uncertainty about whether their applications are even seen by a person. This experience can undermine confidence and make navigating a difficult job market feel insurmountable.
These findings precede official government figures on young people not in employment, education, or training (NEETs). Earlier data showed the NEETs figure exceeded one million at the beginning of the year. Some businesses attribute the reduction in hiring young staff to increased operational costs, including rising employer national insurance contributions and minimum wage.
The increasing adoption of AI technology poses an additional challenge, as AI is capable of performing tasks traditionally handled by junior employees in fields such as accounting and law.