Across multiple sectors, AI adoption is moving from experimentation to standard business practice. For employers, it presents opportunities to improve productivity, reduce repetitive work and create new roles linked to AI-enabled growth. For young people and graduates, however, the picture is more complex. While some new opportunities are expected to come forward, the skills needed to access and progress through many existing early-career pathways are likely to change.
The challenge is not simply whether AI replaces jobs, but whether it changes the entry-level pathways through which young people gain experience, develop skills and progress.
At GC Insight, we work with local authorities, combined authorities and public sector partners across the country to provide robust evidence and shape strategy for the development of future workforces that support the needs of local places. In this article, we explore what AI could mean for entry-level employment, which young people and occupations may be most exposed, and how places can adapt their skills, employment and economic development approaches to prepare the next generation for an AI-enabled economy.
AI is not impacting every part of the labour market in the same way. The greatest impacts are likely to be felt where tasks are routine or administrative, which can present challenges because these occupations have traditionally provided strong entry points for graduates and young people into the labour market.
According to IMF estimates, around 70% of UK workers are in occupations that contain tasks that AI could potentially perform or enhance, with this representing a higher share than other advanced economies due to the service-sector intensity of the UK economy. These jobs are not expected to disappear, though there is potential for AI to change the mix of tasks performed by the workforce. As a result, when recruiting new staff, employers may look for different skills than before. With increased automation of administrative tasks, new entrants and re-entrants to the workforce may be expected to bring greater levels of communication, problem-solving and related skills, as well as strong levels of AI literacy.
Although many companies remain at a relatively early stage in their AI adoption journey, data is already starting to show reduced job opportunities for some young people and recent graduates. However, this evidence is still emerging, and in the UK it is difficult to separate the specific impact of AI from broader labour market pressures, including wider financial pressures and increased taxation.
Recent data releases have indicated a significant fall in the number of graduate jobs, with data from jobs website Adzuna showing just 8,383 graduate vacancies listed in July, down from 15,397 at the same point last year. In contrast, the website showed 55,800 graduate roles in 2017. A fall in vacancies over recent years is notable in the data, although this may not fully capture the graduate jobs market due to potential changes in how vacancies are advertised. Broader statistics also point to a significant challenge, with over 16% of young people aged 16-24 unemployed, and more than one million young people not in education, employment or training.
International evidence suggests that entry-level roles are more at risk from AI replacement than experienced roles. This evidence found that in June 2025, there were 35% fewer job postings listed for entry-level roles than in January 2023. The same source also demonstrated a direct correlation between AI exposure and demand for entry-level roles, with an 11% fall in entry-level job demand alongside a 10% increase in AI exposure. Notably, this trend was not apparent in experienced job postings, which saw an increase in job opportunities over the same period.
Not all entry-level jobs are equally at risk from AI adoption. Evidence shows the sectors that are most at risk include administrative and clerical work; junior software and IT roles; business, finance and professional services; customer services and call centre jobs; and marketing and communications. Within these sectors, the jobs most at risk are those involving tasks that are more easily automated. This includes document drafting and data entry, graduate programmer roles, graphic design, translation and customer helpline workers.
These impacts are important because many of these occupations have historically provided “foot-in-the-door” opportunities for young people and graduates. Entry-level roles can allow new workers to develop workplace confidence, sector knowledge, communication skills, technical capability and access to progression routes. If some of these routes shrink or require higher skill levels from the outset, there could be wider implications for social mobility and long-term talent pipelines.
Over the last decade and beyond, finding job opportunities for young people not in education, employment or training has become a nationally significant priority. Local, regional and national upskilling efforts have taken a variety of forms, including skills bootcamps, Sector-based Work Academy Programmes (SWAPs), Youth Hubs and, more recently, the Youth Guarantee. AI is adding further complexity to these efforts.
For local areas, AI is not just a technology issue, but a skills, employment, inclusion and wider economic development issue. As some traditional entry-level pathways become more exposed to automation, local areas may need to think carefully about how young people are supported into resilient routes to work. This could include the refocusing of training programmes and the promotion of routes into occupations such as construction and skilled trades, health and social care, green technologies, engineering maintenance, advanced manufacturing, education and training, as well as AI-enabled roles across the wider economy.
Loss of entry-level jobs could have wider socio-economic consequences across labour markets and local economies. To respond effectively, local areas will need to treat AI as part of the wider employment and skills agenda, not as a standalone issue. This means understanding where entry-level pathways are changing, which groups may be most affected, and where new or more resilient routes into work can be strengthened.
Growing emphasis is being placed on the role of local places to respond to challenges around skills and employment. Mayoral authorities are set to be given more responsibility and scope to shape education, skills and training programmes to better facilitate routes into the labour market. To support this, local areas need the latest data intelligence to understand their areas and how to plan for the future. This data should focus on the factors affecting vacancies, job design, skills demand and employer behaviour, but it should also look much more broadly. Intelligence on sectors, business health and growth potential is crucial for understanding current and future risks and opportunities, while supporting infrastructure such as transport, housing and health service outcomes can also all impact on the ability to change employment rates. Local areas should combine national evidence with robust local data, employer engagement and collaboration between organisations to support responses to youth inactivity and unemployment.
Overall, AI is changing the routes into work, not just the jobs available. While automation may reduce or reshape some traditional entry-level opportunities, it could also improve productivity, create new roles and open different pathways into employment. Reporting from PwC shows that UK AI-related job postings increased by 61% between 2024 and 2025, with AI hiring growing from 112,000 to 180,000 vacancies and AI-related roles now making up 2.2% of all job postings. The challenge for local areas is therefore not to predict exactly which jobs AI may replace, but to understand how tasks, roles and skills are changing and prepare people and employers accordingly.
By adapting early and supporting a range of routes into work, places can help ensure that AI supports more productive local economies while avoiding it becoming harder for the next generation to take their first steps into employment.
At GC Insight, we support local authorities, combined authorities and public sector partners through periods of economic and labour market change, including the potential impacts of AI adoption in local economies. From building robust evidence bases and assessing policy impacts to developing strategies, business cases and evaluation frameworks, we help places understand the implications of reforms, manage transitions effectively and make informed decisions for communities, services and local economies. Get in touch with our team to find out more.
At GC Insight, we have a strong interest in the responsible use of artificial intelligence (AI) as part of our wider commitment to high‑quality, rigorous and forward‑looking research and advisory services. We see AI as a tool that can support and enhance our work, but it will not replace professional judgement, methodological rigour or the human insight that is vital to maintain our quality standards. Find out more about our approach and read our AI Use Statement.
