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 number of junior roles has dropped by more than a third since November 2022, while graduate jobs, despite a slight rise in July, remain down by more than a quarter year on year.
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. While permanent job openings have dropped by 9 per cent since April, advertised contract positions surged 22 per cent in July as firms sought to offset the impact of higher costs.
The trend is most pronounced in professional services sectors such as accounting and finance, marketing, legal and consultancy, where businesses are leaning on flexible labour rather than committing to long-term hires.
Healthcare and nursing remain the most under pressure, with vacancies falling for a third consecutive month. Since April, the number of healthcare roles has dropped by more than a quarter – the steepest decline of any sector.
By contrast, trade and construction saw an 11.7 per cent month-on-month increase in job openings, while retail also recorded further growth.
Overall, the total number of job vacancies in the UK dipped by 1.2 per cent in July to 864,705, reversing the strong annual growth seen in June.
At the same time, wages continue to rise. Average advertised salaries hit £42,264 in July – up 8.75 per cent year on year – with stubborn inflation and higher minimum wage levels helping to push up pay.
Andrew Hunter, co-founder of Adzuna, said the latest figures highlighted the uneven picture across the UK labour market.
“After a hopeful uptick in June, July saw the pendulum swing back with vacancies falling again,” he said. “While salary growth remains one of the few consistent positives – continuing to outpace inflation – hiring appetite is clearly uneven.
“The ongoing strength in sectors like construction is in stark contrast to another consecutive monthly drop in healthcare roles – traditionally one of the most stable sectors. This speaks to a market still finding its footing. Until we see greater stability across the board, it’s likely this stop-start pattern will continue.”
For young people looking to enter the workforce, however, the decline in entry-level opportunities risks creating a tougher and more competitive jobs market than at any time in the past half-decade.