What's happened
The UK job market for graduates is facing unprecedented challenges, with entry-level job vacancies dropping by 33% since last year. The rise of artificial intelligence and economic factors are contributing to this decline, leaving new graduates with fewer opportunities as they enter the workforce.
What's behind the headline?
Impact of AI on Job Market
- The introduction of AI technologies is reshaping the landscape of entry-level jobs, particularly in professional sectors.
- Companies like IBM and BT are leveraging AI to enhance efficiency, leading to significant reductions in workforce needs.
Economic Factors
- Rising labor costs, including increased National Insurance contributions, are discouraging employers from hiring new graduates.
- The overall job market is experiencing a contraction, with many employers opting to retain existing staff rather than hire new talent.
Future Outlook
- Predictions suggest that AI could eliminate up to half of all entry-level jobs within five years, raising concerns about long-term unemployment rates.
- The government and businesses must prioritize training and skill development to prepare the workforce for a rapidly changing job environment.
What the papers say
According to The Guardian, the number of entry-level jobs has dropped by almost a third since the launch of ChatGPT, with vacancies now accounting for only 25% of the market. This decline is attributed to companies increasingly using AI to cut costs. The Independent highlights that AI could potentially eliminate half of all entry-level jobs in the next five years, with rising labor costs also contributing to the reduction in job vacancies. The situation is further complicated by a general slowdown in hiring practices, as noted by Indeed, which reported a 33% decrease in roles advertised for recent graduates compared to last year.
How we got here
Since the launch of ChatGPT in November 2022, the job market for recent graduates has deteriorated significantly. Reports indicate that AI is increasingly replacing entry-level roles, while rising labor costs and economic uncertainty further complicate hiring practices.
Go deeper
- What specific roles are being affected by AI?
- How are companies adapting to the changing job market?
- What can graduates do to improve their job prospects?
Common question
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Why are so many millionaires leaving the UK in 2025?
In 2025, the UK is witnessing an unprecedented exodus of millionaires, with a record 16,500 expected to leave. This trend raises important questions about the factors driving this migration and its implications for the UK economy. Below, we explore the reasons behind this shift, the countries attracting these wealthy individuals, and what the future may hold for the UK's financial landscape.
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How is AI Changing Job Opportunities in the UK?
The impact of artificial intelligence (AI) on the UK job market is profound and multifaceted. While AI is reshaping job opportunities, it also presents challenges, especially for recent graduates. This page explores the evolving landscape of employment in the UK, highlighting sectors that are thriving and those that are struggling amidst these technological advancements.
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What is the Current State of the UK Job Market in 2025?
The UK job market is experiencing a complex landscape in 2025, with rising vacancies and salaries in some sectors, while new graduates face significant challenges. Understanding these dynamics can help job seekers navigate their options effectively.
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Why Are Entry-Level Job Vacancies Declining in the UK?
The UK job market for graduates is facing significant challenges, with a staggering 33% drop in entry-level job vacancies since last year. This decline raises important questions about the future of work for new graduates and the role of technology in shaping job opportunities. Below, we explore the reasons behind this trend and what it means for job seekers.
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