By Stuart Kerr
Published: 30 June 2025, 09:45 BST
Updated: 30 June 2025, 09:45 BST
The UK’s entry-level job market has undergone a dramatic transformation, with vacancies for graduate roles, apprenticeships, internships, and junior positions without degree requirements plummeting by 32% since the launch of OpenAI’s ChatGPT in November 2022. According to new research from job search platform Adzuna, reported today by The Guardian, these roles now make up just 25% of the UK job market, down from 28.9% three years ago.
As businesses increasingly integrate artificial intelligence (AI) into their operations, this sharp decline has sparked a heated debate: Is AI a threat to young jobseekers, or does it represent an opportunity for workforce transformation?
The AI-Driven Contraction of Entry-Level Jobs
The Adzuna study highlights AI’s rapid adoption as a key driver behind the shrinking entry-level job market. James Neave, head of data science at Adzuna, explained that companies are leveraging AI to enhance efficiency, particularly in roles traditionally filled by recent graduates and junior employees.
This trend is not isolated. Major employers like BT have already signalled a shift toward AI-driven workforce reductions. In 2023, BT’s chief executive Allison Kirkby announced plans to replace 10,000 jobs with AI by the end of the decade, with further cuts possible as AI capabilities advance. Reports the Times.
Graduates Hit Hardest
The impact on recent graduates has been particularly severe. A separate report from job platform Indeed, published last week, found that graduate job postings have fallen by 33% year-on-year, marking the toughest job market for university leavers since 2018.
Jack Kennedy, senior economist at Indeed, described the situation as a “challenging time” for new entrants trying to secure their first professional role.
“Employers are increasingly retaining existing staff while automating entry-level tasks, leaving fewer opportunities for newcomers,” Kennedy noted.
The full data, available via Adzuna’s 2025 UK Job Market Report, underscores a broader slowdown in the UK labour market, with total job vacancies dropping by 5% since March 2025.
AI as a Job Killer or Career Transformer?
While the decline in entry-level roles is alarming, some experts argue that AI could reshape rather than eliminate job opportunities.
The Optimistic Perspective: AI as a Career Accelerator
Kerry White, director of HR recruitment consultancy RedGreen Partners, pointed out that 38% of HR professionals report AI enabling entry-level workers to focus on more analytical and strategic tasks, with 24% noting reduced experience requirements for certain roles.
This aligns with broader trends in industries like healthcare, where AI tools—such as the NHS’s new AI alert system—are enhancing efficiency without replacing human oversight (as explored in our recent article, NHS Embraces AI Alert System to Prevent Patient Harm).
The Pessimistic View: AI as a White-Collar Disruptor
However, not all experts share this optimism. Dario Amodei, CEO of AI developer Anthropic, predicted that AI could eliminate up to 50% of entry-level white-collar jobs within five years.
This forecast resonates with graduates like Simran Abdullatif, who, despite earning a first-class degree in Criminology and Sociology from the University of Kent, has sent over 100 job applications without securing a single interview.
“I’ve come to realise how tough just finding a job is,” she told The Telegraph, echoing the frustration of many young jobseekers facing unprecedented competition.
Government and Industry Response: Upskilling vs. Immediate Challenges
The Call for Upskilling
Government officials are urging workers to adapt to the AI-driven economy. Technology Secretary Peter Kyle, speaking earlier this month, emphasised the need for rapid upskilling to avoid being “left behind.”
“There’s no one in employment incapable of gaining the skills needed for future economies,” Kyle stated, advocating for embracing AI to unlock its potential rewards.
Criticism of Current Training Gaps
However, critics argue that the government’s focus on long-term upskilling overlooks immediate barriers for jobseekers. A report from the Institute for Employment Studies found that the pace of AI-driven skill demands is 66% faster in high-exposure roles (e.g., financial analysis, content creation) than current training programs can accommodate.
This mismatch leaves many workers struggling to keep up, exacerbating the skills gap rather than closing it.
Employers’ Dilemma: Efficiency vs. Talent Pipeline
Businesses, too, face a difficult balancing act. While AI adoption improves efficiency, over-reliance on automation risks undermining future leadership pipelines.
Simon Roderick, managing director of Fram Search, warned:
“Organisations must balance efficiency gains with the need to nurture talent. Displacing entry-level roles could erode trust and stifle innovation in the long run.”
This tension is compounded by broader economic pressures. The Office for National Statistics (ONS) reported a 16.9% drop in total job vacancies between March and May 2025, driven partly by rising National Insurance contributions and minimum wage hikes.
The Human Cost: A Generation at Risk?
The real-world impact of this shift is already evident. Many graduates are settling for low-skilled jobs in hospitality or retail to stay afloat. According to the ONS, only 60.4% of graduates aged 21-30 in England are in high-skilled roles, while 26.4% are stuck in medium or low-skilled jobs.
This skills mismatch highlights the urgent need for policy interventions to ensure AI benefits rather than displaces workers.
The Road Ahead: Adaptation or Crisis?
As AI continues to reshape the job market, the UK stands at a critical juncture. Possible pathways include:
Expanding AI-Augmented Roles – Creating hybrid jobs where AI assists rather than replaces workers.
Accelerated Upskilling Programs – Government and corporate partnerships to fast-track digital training.
Policy Safeguards – Incentives for companies to maintain entry-level hiring alongside AI adoption.
Without decisive action, the promise of AI risks becoming a threat to an entire generation’s career prospects.
Stuart Kerr is a technology journalist and founder of Live AI Wire. Follow him on X (@liveaiwire) or contact him at liveaiwire@gmail.com.
