Among large employers, these figures rise to 64% and 60% respectively. For employers, these technologies can help manage applications, reduce costs and redesign routine tasks. But there are potential consequences for young people. Entry-level work often consists of routine tasks through which young people gain valuable experience. If automation removes these tasks, employers may need fewer junior workers or could redesign roles around higher-level capabilities. At the same time, automated recruitment is changing how young people compete for the jobs that remain. Young people have previously described to us how online and AI-led recruitment are complex and demoralising, with some unsure whether a person had even seen their application. Technology may be starting to reduce some entry-level opportunities, but it is already making recruitment processes more inflexible and less personal for jobseekers. EMPLOYER CAPACITY GAP Creating more jobs is only part of the challenge. Employers also need the capacity to support young people once they enter work. Most employers (72%) say they can support young people taking their first steps into employment. However, this falls to 62% for those who have been NEET for six months or more. 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 just 44% of small employers. This creates a challenge for policymakers. Larger employers may be easier for government to work with at scale, but they are more likely to be reducing entry-level opportunities. Smaller employers may offer an important source of additional jobs, but financial incentives alone may not give them the capacity to participate. MAKING POLICY WORK The UK Government has responded to the youth employment challenge by introducing new measures, including the Jobs Guarantee, which is expected to provide 90,000 eligible young people with six-month paid jobs over three years. These interventions may drive improvements but are unlikely on their own to significantly increase longer-term employment opportunities, particularly in weaker local labour markets. Government has an opportunity to take a more daring approach, working alongside employers to expand access to good quality jobs. Our analysis highlights three priorities: • Take a bolder approach to job creation. Ensure subsidised roles are genuinely additional, offering a living wage, training, security and clear progression. • Strengthen practical support for employers. Smaller firms may need help with recruitment, induction, mentoring and workplace adjustments. • Make entry-level recruitment more accessible. Employers receiving public funding should review unnecessary experience requirements, how AI is used to screen applicants, and whether young people receive meaningful feedback. Our findings suggest employers do not need convincing that youth worklessness is a serious problem. The challenge is creating enough good opportunities, keeping entry-level roles accessible and giving employers the capacity to support young people. Without targeted intervention, more young people risk becoming disconnected from the labour market, with lasting consequences for individuals and the wider economy. By strengthening support for employers and expanding access to good quality jobs, Government can help more young people take their first steps into secure and rewarding employment. FIFTY FOUR DEGREES | 21 Jon Fitzmaurice is Head of External Engagement at the Work Foundation at Lancaster University. This article draws on First steps: How employers and Government can tackle the youth employment crisis, by Jon Fitzmaurice, Ben Harrison, Emelia Williams and Christopher Wood. The analysis is based on a nationally representative Survation survey of 1,001 UK senior business leaders conducted in May 2026. j.fitzmaurice@lancaster.ac.uk 44% of employers have used AI or automated systems to screen applications
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