Entry-level job vacancies slump to five-year low as Reeves's tax raid hits young workers

Entry-level roles in the UK reached their lowest share since 2019, with graduate positions, apprenticeships and junior jobs falling to 209,778 in July, a 6.8% drop. Junior roles have declined by over a third since November 2022 and graduate jobs are more than a quarter lower year-on-year despite a small July rise. Employer payroll costs rose after employer National Insurance increases and a higher National Minimum Wage following the £25 billion Budget measures. Hospitality has shed large numbers of part-time and lower-paid jobs. Firms are shifting toward contract hiring and using AI, especially in professional services, reducing permanent junior hires.

The number of entry-level jobs in the UK has slumped to its lowest level in five years, with young workers facing growing barriers to starting their careers as rising costs and Labour's tax policies bite. According to the latest UK job market report from recruitment platform Adzuna, graduate roles, apprenticeships and other junior positions fell by 6.8 per cent in July to 209,778. Entry-level vacancies now account for just 21.9 per cent of all UK job listings - the lowest share recorded since 2019.

The sharp decline comes as employers grapple with higher costs following Chancellor Rachel Reeves's £25 billion Budget tax raid. National Insurance contributions for employers were increased in April alongside a rise in the National Minimum Wage, leaving businesses facing higher payroll bills. Hospitality has been among the hardest hit sectors. Trade group UKHospitality estimates nearly 90,000 jobs have been lost since October as pubs, restaurants and hotels cut back on part-time and lower-paid roles.

At the same time, companies are increasingly turning to artificial intelligence (AI) to replace tasks traditionally handled by junior staff. Jobs board Indeed recently reported that the Big Four accountancy firms - Deloitte, EY, KPMG and PwC - have cut hundreds of graduate roles in recent years as AI adoption accelerates. The Adzuna report also revealed a marked shift in employer hiring strategies.

Read at Business Matters