Vacancies for entry-level roles have dropped to a five-year low as companies turn to automation to fill junior positions amid rising cost pressures.
Job ads for entry-level positions, including graduate roles, apprenticeships and junior listings, fell by 4.5 per cent in July, compared with the previous month, according to the latest labour market data from jobs site Adzuna.
Junior roles make up 21.9 per cent of all vacancies, representing a 6.8 per cent decline over the past 12 months.
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“The rise of AI tools like ChatGPT that perform mundane tasks traditionally carried out by more junior employees are putting the squeeze on entry-level positions,” said Jim Moore, employee relations partner at HR and employment law service provider Hamilton Nash.
Employers that reduce the number of entry level positions risk “cutting off” an essential part of the workforce pipeline, he warned, stating that these roles are “vital” for developing talent pipelines.
Although the number of graduate job listings rose by 2.5 per cent month-on-month, the figure is down 28 per cent compared with July last year.
Accountancy firms KPMG and Deloitte are among the large employers that have cut back on graduate recruitment. KPMG reduced its graduate cohort by 29 per cent last year, according to The Telegraph, while Deloitte’s recruitment of graduates fell by 18 per cent.
Jo Benelisha, director of hiring agency Strictly Recruitment, said automation, cost pressures and rising skill expectations are pushing employers to favour “job-ready hires” over talent development.
However, she added that investing in junior staff is still worthwhile. “It builds loyalty, nurtures future leaders, brings in new skills and ideas and strengthens employer reputation,” Benelisha said. “In the long run, structured training, apprenticeships and mentoring ensure sustainable growth and workforce resilience.”
Chris Eldridge, CEO of headhunting and recruitment agency Robert Walters UK and Ireland, said: “Rather than scaling back, employers should focus on redesigning early-career roles to integrate future skills alongside AI capabilities.”
Improving training and mentorship opportunities is key to achieving this, according to Eldridge. He said that, currently, entry-level positions are deemed “administrative placeholders” rather than being viewed as an opportunity to develop future-ready talent.
“Investing in young people now will help ensure organisations remain competitive and capable of sustaining growth for years to come,” he added.
Overall vacancies continue to fall
The decline in entry-level vacancies comes against a broader cooling of the UK jobs market.
Overall vacancies fell by 1.24 per cent in July to 864,705 and unemployment remained at a four year high of 4.7 per cent. As a result, the number of jobseekers per vacancy increased to 1.98 in July, up from 1.84 in June.
Permanent job openings dropped by 9 per cent since the minimum wage rise in April, while ads for temporary roles increased by 22 per cent.
Despite the drop in vacancies, average advertised salary has continued to rise and reached £42,264 in July, up 8.75 per cent annually.
“While salary growth remains one of the few consistent positives – continuing to outpace inflation – hiring appetite is clearly uneven,” said Andrew Hunter, co-founder of Adzuna.
He highlighted that there was also a consecutive monthly drop in healthcare roles – traditionally one of the most stable sectors.
“This speaks to a market still finding its footing,” said Hunter, also noting that overall vacancies fell in July, following a “hopeful uptick” in June. “Until we see greater stability across the board, it’s likely this stop-start pattern will continue.”
For further information, listen to the CIPD’s podcast which assesses whether apprenticeships the forgotten key to building talent pipelines.