The number of entry-level jobs in the UK has plunged by almost a third since the launch of the artificial intelligence chatbot ChatGPT, as companies increasingly turn to automation and grapple with rising employment costs.
New figures from job search engine Adzuna reveal that vacancies for graduate roles, apprenticeships, internships and junior positions with no degree requirement have fallen by 31.9 per cent since November 2022, when ChatGPT was released. Entry-level positions now make up just 25 per cent of the jobs market, down from 28.9 per cent in 2022.
The decline coincides with growing concern over the impact of AI on the workforce. BT said last year that it would replace up to 10,000 jobs with AI by the end of the decade, with roles in customer service and network diagnostics among those at risk. The company’s chief executive, Allison Kirkby, has since warned that even more significant cuts may follow as AI continues to advance.
Dario Amodei, chief executive of AI company Anthropic, which is valued at $61 billion, recently predicted that AI could wipe out half of all entry-level white-collar jobs within five years, potentially pushing unemployment up by 10 to 20 per cent.
James Neave, head of data science at Adzuna, said the shift reflected not only broader economic pressures but a growing appetite for automation. “If you can reduce your hiring at the entry level, that’s just going to increase your efficiency and improve cost savings,” he said.
The fall in junior roles also reflects the mounting financial burden on employers. The rise in national insurance contributions, the uplift to the national minimum wage, and looming reforms under the proposed Employment Rights Bill are all contributing to reduced demand for less experienced workers.
“NIC contributions were just a pure financial burden,” said Neave. “And the Employment Rights Bill is upping the ante for employers even more. If you’re an employer, it all adds to the list of reasons why you might not hire people.”
The decline has been particularly acute in the retail sector, which has seen a staggering 78.2 per cent drop in entry-level job adverts since late 2022. Logistics and warehouse jobs, as well as junior administrative roles, have also seen steep declines.
Several professional sectors have seen similar reductions. Entry-level roles in IT have fallen by 54.8 per cent, while junior jobs in accounting and finance are down 50.8 per cent over the same period.
Despite the shrinking pool of junior roles, the broader jobs market is showing signs of resilience. Overall UK vacancies rose by 0.49 per cent year-on-year in May to 858,465 — the third consecutive month of growth — and advertised salaries increased by 9.4 per cent to £42,403, the strongest annual pay growth since mid-2022.
The average time to fill a vacancy also fell in May, down from 39.6 days to 35.8, while the number of jobseekers per vacancy rose slightly to 2.02, up from 1.98 the previous month.
While overall vacancies have returned to pre-pandemic levels, the UK continues to trail global counterparts such as the US, France, and Germany in labour market performance.
The data raises fresh questions about the long-term outlook for young workers entering the job market — and whether the shift toward AI-led productivity will further sideline traditional career pathways.
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Entry-level jobs slump 32% amid rise of AI and growing employer costs