Youth employment has risen rapidly up the political agenda over the past year. More than one million young people aged 16–24 in the UK are now not in education, employment, or training (NEET) – the highest number since 2013.

Much of the debate has, rightly, focussed on the complex and interrelated barriers that can prevent young people from entering work, but there has been less attention on whether employers are creating enough suitable opportunities for young people to take their first steps into the labour market. Work Foundation research has found there is now only one starter vacancy for every three NEET young people nationally. Without more good quality, accessible entry-level jobs, it will be difficult to sustainably increase the number of young people in employment in the future.

The UK Government has responded to this challenge by commissioning the Milburn Review and introducing a range of new youth employment measures, including the Jobs Guarantee and Youth Jobs Grant. But turning these interventions into sustained employment outcomes will require policymakers and employers to work together to expand routes into work and ensure young people can access them.

This article draws on a nationally representative Survation survey of 1,001 UK senior business leaders to examine how employers view the youth employment challenge and how their recruitment practices are changing in response to a series of challenges and opportunities. It finds that while employers recognise the scale of the youth unemployment problem, translating that concern into more accessible entry-level opportunities remains a significant challenge.

Employers recognise the challenge, but job opportunities are still contracting

Nearly three quarters (73%) of employers say the level of young people who are NEET is a national crisis, while 76% agree employers have a responsibility to do more. The findings also challenge the narrative that young people are failing to meet employers’ expectations - three in five employers (60%) say 16-24 year olds are generally ready for the world of work, while 73% believe they face greater barriers to entering work than five years ago.

Yet 36% of employers say they have reduced entry-level jobs over the last year. This rises to 48% of medium-sized employers and 46% of large employers, compared with just 24% of small firms. These findings tally with wider ONS labour market data that suggests young people are increasingly competing for a smaller pool of starter jobs.

When entry-level vacancies are scarce, employers have more scope to recruit workers who already have qualifications or experience. The results suggest that many young people are ‘ready’ for work but are still finding it increasingly difficult to secure a job.

Figure 1: Senior business leaders agreeing with the following statements

Source: Work Foundation analysis of nationally representative Survation survey of 1,001 UK senior business leaders (May 2026)

Experience needed: Entry-level jobs are becoming harder to access

The survey found that nearly two thirds of employers prioritise education qualifications (63%) and prior work experience (62%) when recruiting for entry-level roles. Some vacancies will legitimately require particular skills, but the need for previous experience creates a trap. Employers value experience, but many young people can’t get that experience as entry-level roles are more likely to go to candidates with experience.

Figure 2: By organisation size, senior business leaders who agree that their organisation has the capability to:

Source: Work Foundation analysis of nationally representative Survation survey of 1,001 UK senior business leaders (May 2026)

This creates a challenge for young people, employers and policymakers when demand is weak. Entry-level jobs allow young people to build a work history, develop skills, gain references and demonstrate reliability. In workshops in Morecambe and Liverpool earlier this year, young people told us that “no one is hiring” and that “I want the work, but the work does not want me”. With few jobs available, it can be a demoralising experience searching for work when it is so difficult to compete for the jobs that remain.

However, there is evidence of employers trying to bridge that gap. Almost three in five (59%) offered placements, apprenticeships, internships or work experience over the last year, and the same proportion provided feedback to unsuccessful young applicants.

The survey results indicate that supportive practices and restrictive entry requirements coexist within the labour market. However, if more young people are to find sustainable employment, it’s critical that more opportunities described as ‘entry level’ are genuinely accessible to people entering work with low levels of work experience.

Figure 3: By organisation size, senior business leaders who agree that their organisation:

Source: Work Foundation analysis of nationally representative Survation survey of 1,001 UK senior business leaders (May 2026)

A double pressure: AI appears to be reducing jobs and reshaping recruitment

The impact of AI and automation is adding another layer of complexity for young jobseekers. Evidence to date suggests AI has had only a limited impact on employment, and recent hiring weakness should not be attributed to it alone. However, as adoption accelerates, concerns are growing about its medium-term impact, particularly on entry-level recruitment.More than two in five employers (44%) say they have already used AI or automated systems to screen applications, while 43% report investing in AI or automation that has reduced entry-level roles. Among large employers, this rises to 64% and 60% respectively.

Figure 4: Thinking about your organisation’s recruitment of young people aged 16–24 for entry-level roles, apprenticeships, internships or graduate positions, which of the following, if any, has your organisation done in the past 12 months?

Source: Work Foundation analysis of nationally representative Survation survey of 1,001 UK senior business leaders (May 2026)

For employers, these technologies can help manage application volumes, reduce costs and redesign routine tasks. But there are compounding impacts for young people. Entry-level work often consists of routine tasks, where young people can gain valuable work experience. If automation removes those tasks, employers may need fewer junior workers or may redesign roles around higher-level capabilities.

At the same time, automated recruitment is changing how young people compete for the jobs that remain. Our recent research found young people describing online and AI-led recruitment as complex and demoralising. Some were unsure whether a person had seen their application, while limited feedback made it difficult to understand rejection or improve the next one. This is particularly challenging for young people who described themselves as "different" and had alternative qualifications or needs.

These results point to a double pressure that young people are facing in the jobs market. Technology may be starting to reduce some entry-level tasks and jobs while making the recruitment processes for those that remain more inflexible and less personal.

A capacity gap: Not all employers are equally equipped to support young people

Most employers (72%) say they can support young people taking their first steps into employment. This falls to 62% for young people who have been NEET for six months or more, and 60% for those with long-term physical health conditions or disabilities.

Business size reveals an important divide. Four in five large employers (80%) say they can support young people who have been NEET for six months or more, compared with 44% of small employers. For young people with long-term physical health conditions or disabilities, the gap is 78% to 40%.

Smaller firms may offer valuable opportunities, and due to their scale, more personalised support and mentoring. However, they often have less capacity to support someone who has been out of work for a long time. Whilst larger organisations are more likely to have HR teams and established support processes, they are however almost twice as likely as small firms to report cutting entry-level jobs and 2.5 times as likely to say AI or automation has reduced them.

Policymakers must respond to this capacity-opportunity gap – particularly given SMEs make up the majority of employers in many parts of the country. Larger employers may be easier for Government to work with at scale on youth employment schemes, but they also appear to be reducing entry-level routes fastest. Smaller employers may represent an important source of additional opportunities, but wage subsidy alone may not give them the capacity to participate.

What this means for the Government and the Jobs Guarantee

The UK Government have responded to the youth employment challenge by introducing a Jobs Guarantee. From later in 2026, eligible 18-24 year olds who have been on Universal Credit and looking for work for 18 months will be guaranteed a fully subsidised six-month paid job, with wraparound support. The scheme is expected to support 90,000 young people over the next three years.

Business groups, such as the CBI, have stated that rising business costs have reduced entry-level jobs, and have called on the Government to reduce National Insurance thresholds under-25s to tackle youth unemployment. However, Resolution Foundation analysis estimates the Jobs Guarantee and Youth Jobs Grant are the most cost-effective options on the table when it creating more jobs for young people. By comparison, they estimate the National Insurance threshold change could cost 3.5 times more per job.

These interventions may drive improvements, but as it stands they are unlikely to materially increase the stock of longer-term employment opportunities available to young people – especially for those looking for work in weaker local jobs markets.

Government must prevent young people becoming detached from work or education, however, the Jobs Guarantee gives Government a direct lever over both the quantity and quality of opportunity. To make the Jobs Guarantee work effectively, it must be bolder.

To do that, it must ensure any subsidised roles are genuinely additional, rather than replacing jobs which employers would have created anyway and include a renewed job creation drive from Government itself. Participation in such schemes should remain voluntary, and roles should be good jobs, with a living wage, training, security, and clear progression.

Secondly, Government should strengthen practical employer support alongside financial incentives to recruit. Smaller employers, in particular, may need help with approaches to recruitment, induction, mentoring, workplace adjustments, and progression. Trusted local intermediaries can help match young people and employers and support both sides when difficulties arise.

Finally, employers receiving public funds should be mandated to review their approach to recruitment. This should include considering whether previous experience or formal qualifications are genuinely essential, how AI is used to screen candidates and whether applicants receive enough information and feedback to navigate the process.

Our survey findings indicate that employers do not need convincing that youth worklessness is a serious problem. But the challenge is creating enough good opportunities, keeping the entry-level roles accessible and giving employers the capacity to support young people to take the opportunities offered.

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