Investments in artificial intelligence and automation are narrowing young people's access to entry-level jobs in the UK, with 36% of employers reducing positions for 16- to 24-year-olds over the past 12 months.
The survey, conducted by Survation among 1,001 senior business leaders, was commissioned by the Work Foundation at Lancaster University. The study also included employers' assessments of the situation of young people who are not in education, employment or vocational training.
Decline concentrated among medium-sized and large businesses
The share of businesses reporting a reduction in entry-level jobs was 48% among medium-sized companies and 46% among large companies. The rate was 24% among small businesses.
Seventy-three percent of employers described the number of young people not in education, employment or vocational training as a national crisis. Seventy-six percent of participants said employers should take greater responsibility for supporting young people's transition into working life.
Employers use artificial intelligence in recruitment
Forty-four percent of employers included in the survey said they used artificial intelligence or automated systems to assess job applications. Forty-three percent said investments in artificial intelligence or automation had led to a reduction in entry-level positions.
The share of respondents linking investments in artificial intelligence and automation to the decline in positions rose to 60% among large businesses. Researchers called on the government to continue reforms that would make working life more secure and create new skilled jobs. They also called for local, practical support to make it easier for small businesses to recruit.
Call for greater support to help young people enter work
Ben Harrison, director of the Work Foundation, said young people were facing one of the most challenging labor markets of recent years. Harrison said competition for the shrinking number of entry-level jobs had intensified and that young people's opportunities to secure stable employment were narrowing.
Harrison said the solution should not be limited to providing young people with greater employment support. He said the decline in existing opportunities, particularly in areas where labor markets are weaker, also needed to be addressed.