AI causing “sharp decline” in entry-level jobs warns British Chambers of Commerce
New report warns that rapid adoption of AI is reducing entry level roles across the UK, threatening opportunities for young workers and raising fears that ordinary people will be left behind
Britain’s once solid route into the world of work is under siege from artificial intelligence according to new research by the British Chambers of Commerce. The rise of AI is not just a talking point for tech insiders: it is already reshaping the early days of careers for millions of young people and ordinary families across the UK.
Skills shortage
The BCC’s latest report shows that around two-thirds of UK firms now say they cannot find workers with the right skills to do the jobs they need done. That labour shortage has been made worse by AI adoption and rising employment costs which could see youth unemployment spike to an eye-watering 17 per cent this year.
This dramatic statistic tells a grim story for entry-level roles that have traditionally given young people their first break. These are the jobs that matter for building confidence earning wages and learning how to contribute to an employer. Instead, the work landscape is rapidly changing with automation and smart tools performing tasks that used to be done by junior staff.
AI adoption in business
The BCC points out that 54 per cent of small and medium sized enterprises are now using AI tools up from just 25 per cent in 2024 showing how rapidly this technology is embedding itself in everyday business life.
But the numbers also underline the scale of the challenge. Only about one in ten firms say they have invested in advanced bespoke AI systems that directly reduce headcount but the concerns about entry level jobs are intensifying as adoption deepens. Employers are increasingly asking whether certain junior roles remain necessary when machines can perform the same tasks faster and cheaper.
For ordinary people the effects are already being felt. Young jobseekers hoping to earn their first pay packet face a tougher market than their parents did. With skills shortages persistent and AI taking on routine tasks that used to be stepping stones into careers the talent pipeline is thinning at an alarming rate.
Few chances for the young
The BCC study suggests that fewer entry-level opportunities mean that young people may have less chance to gain crucial workplace experience and develop their skills a situation that almost guarantees a more uneven future unless action is taken.
Employers now face a stark choice between managing rising costs and embracing new technologies while still developing the next generation of workers. The BCC warns that current policy changes such as increases in national insurance and minimum wage reforms have effectively raised the cost of hiring entry-level workers by around seven per cent in real terms adding another barrier to junior hiring.
Support needed
The solution for a fair future rests on how the nation supports ordinary people through this transition. Technology should not push young workers out of the jobs market. Instead, the Government and businesses must ensure that training, reskilling and apprenticeships are widely available to equip people with the right skills for today’s world of work.
The BCC’s report recommends using funds such as the Growth and Skills Levy to subsidise AI literacy and giving tax credits or grants to encourage employers not just to adopt AI but to invest in human talent alongside it.
AI can be a powerful tool for productivity but only if it works with people not against them. If Britain fails to support ordinary families and young people through this period of transformation then the dream of a fair future where hard work leads to opportunity will slip away.
Policymakers must act now to safeguard entry-level jobs and the promise of social mobility that goes with them so that the next generation is not the one left behind by the AI revolution.