Youth Unemployment Rates and Challenges
Young people are disproportionately affected by the UK's fragile labour market, according to recent data from the Office for National Statistics (ONS). The unemployment rate for individuals aged 16 to 24 stands at 16.1%, significantly higher than the national average of 5.1%. This figure excludes young people who are unemployed but not actively seeking work due to reasons such as ill health or ongoing education.
Businesses in sectors traditionally known for providing young people with their initial employment opportunities, such as retail and hospitality, report that rising operational costs have compelled them to reduce staff numbers or halt new hiring. These measures tend to impact young workers most severely. Additionally, securing graduate-level positions has become increasingly difficult.
Experiences of Young Jobseekers
Lucy Gabb, a Cambridge University graduate from July 2025, currently works in a London cafe while attempting to enter the publishing industry. She describes the competition for entry-level roles as intense, with employers frequently demanding experience that is challenging to acquire during studies.
"Entry-level jobs are just so competitive and they're asking for experience that is just impossible to get whilst you're also studying,"
Lucy has submitted over 50 applications, resulting in only one face-to-face interview.
"All my friends are talking about is the job search. It can be really soul-destroying when you study for so long and you don't get anywhere,"
Employer Perspectives and AI Influence
Employers attribute some of the hiring difficulties to government policies, including increases in the minimum wage, which have raised business costs. Furthermore, artificial intelligence (AI) is increasingly cited as a factor contributing to layoffs.
AI technologies can perform time-intensive tasks such as data processing, following detailed instructions, and generating basic reports and communications—tasks often associated with entry-level jobs.
Danni Hewson, head of financial analysis at AJ Bell, commented on the impact of AI on young workers.
"For young people in particular, already struggling to get their first taste of work, AI could result in a scarcity of entry-level posts,"
Many jobseekers use AI tools to draft applications, enabling them to apply for more positions. Conversely, hiring teams employ AI to screen CVs and, in some instances, conduct interviews.
Challenges in Securing Non-AI-Replaceable Roles
Even roles less susceptible to automation, such as caregiving positions, remain difficult to obtain. Alex, a 21-year-old from County Durham, was recently offered a job in a care home after being unemployed since October. During this period, he applied for 40 jobs across hospitality, retail, and care sectors.
"It's quite discouraging as you don't hear back from a lot and the applications often require a lot of effort or providing data about yourself,"
He expressed dissatisfaction with the support from the Job Centre.
"It felt as though it was there more to monitor me than help me find a job,"
Government Initiatives and Graduate Concerns
The government has introduced the Youth Guarantee Scheme to address youth unemployment. This initiative aims to create thousands of apprenticeships and guarantee paid employment for individuals aged 18 to 21 who have been not in education, employment, or training (NEET) for 18 months.
Olivia Diss from Essex advocates for similar support targeted at university graduates. Olivia studied Spanish and French at Manchester Metropolitan University but is currently applying for a variety of jobs, including retail positions, to secure an income.
The 24-year-old lives with her parents and receives Universal Credit while job hunting. Despite submitting numerous applications, she has faced repeated rejections or no responses.
Olivia acknowledges that retail employers may doubt her commitment to long-term employment in those roles.
"I feel quite disheartened,"
"I spent four years working hard towards a degree that I thought was very valuable."
She feels caught in a difficult position regarding professional roles, as graduate jobs often require several years of experience she does not possess.
"How are they going to ensure our degrees are put to use?"
Olivia calls for a scheme akin to the Youth Guarantee Scheme but designed for graduates to better utilize their qualifications.
