f ou’ve spent years studying, earned a degree with honors, and are ready to launch your career—only to find that entry-level jobs are nowhere to be found.
For countless young people in Britain, this is the reality of 2025. The struggles of well-educated individuals to find work are part of a growing crisis of worklessness, leaving nearly a million young people on the sidelines of the economy.
A Growing Crisis for Young People
According to figures from the Office for National Statistics (ONS), reported by The Telegraph, 987,000 people aged 16 to 24 were classed as not in education, employment, or training (NEET) from January to March 2025.
That’s nearly 1 million young people “effectively on the scrapheap,” as Employment Minister Alison McGovern told the Work and Pensions Committee earlier this year.
“The situation for young people is ... a worry for me at the moment,” McGovern said, underscoring the urgency of addressing this issue.
This crisis is hitting graduates particularly hard. Despite their qualifications, many face fierce competition for a shrinking pool of entry-level roles, raising questions about the disconnect between education and the job market.
Why Are Jobs Disappearing?
Several forces are reshaping the job landscape:
Artificial Intelligence (AI): AI is automating tasks once done by junior staff, slashing entry-level jobs. As reported by The Telegraph, industries like human resources (HR) have seen a 62% drop in job openings in graduate roles over the past year, while accounting has faced a 44% slump in entry-level jobs.
Major firms like KPMG, Deloitte, PwC, and EY are hiring hundreds fewer graduates, relying on AI to handle routine “grunt” work like data processing or financial analysis.
Economic Pressures: Recent policy changes have made hiring. The Telegraph notes that Chancellor Rachel Reeves’s autumn Budget raised employers’ National Insurance contributions, increasing the cost of employing staff.
This has led many businesses to freeze hiring or cut jobs, particularly in sectors like technology, which are still adjusting after over-hiring during the post-pandemic.
Long-Term Decline: The ONS reports the longest sustained drop in job postings on record, surpassing even the financial crisis, making it a challenging environment for new entrants.
These factors create a perfect storm, leaving graduates struggling to secure a foothold in a tough market.
Paths to Opportunity
So, what can graduates and policymakers do? For young job seekers, adapting means exploring AI-resistant fields like healthcare, creative industries, or niche tech areas like cybersecurity.
Short-term certifications, in areas like digital marketing or project management, freelancing, or leveraging networks through internships can also open doors. Building a personal brand online, through platforms like LinkedIn, can help stand out in a crowded market.
Policymakers, meanwhile, must act to bridge the gap. Solutions could include tax incentives for companies hiring young workers, funding for retraining programs, or partnerships with industries to create roles that align with modern economic needs. Without action, the risk of a “lost generation” looms large.
Stay Ahead of the Curve
The job market is evolving, and so must our approach to education and work. To stay updated on the future of learning, emerging trends, and strategies for success, subscribe to our newsletter at educationext.beehiiv.com. Join us in shaping a brighter future for the next generation!
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