The availability of entry-level jobs for young people seeking work remains significantly constrained, with one vacancy reported for every three individuals not in education, employment, or training (NEET). This persistent imbalance has raised questions about the underlying causes, with some attributing the decline in starter positions to technological advances such as artificial intelligence. However, analysts suggest that factors beyond automation are at play.

Over the past decade, the number of junior roles has decreased, but experts point to policy decisions and economic conditions as significant contributors. Employers appear to have become more cautious in advertising vacancies, potentially influenced by increased costs associated with hiring. Since the government’s return to power in July 2024, critics argue that regulatory and financial pressures on businesses have intensified. These measures, intended to support workers and raise employment standards, may have inadvertently discouraged firms from expanding their workforce, particularly in entry-level roles.

Unions have supported policies that raise employment costs, advocating for stronger worker protections and benefits. While such measures aim to improve job quality, they may also impact the overall demand for labor, especially in lower-skilled positions that often serve as entry points for young workers.

The current labor market dynamics present a complex challenge: efforts to protect workers’ rights and increase wages could be limiting employment opportunities for young people at the start of their careers. Policymakers face the task of balancing the need for fair labor conditions with incentives that encourage employers to offer more entry-level positions. Without adjustments, the mismatch between available starter jobs and young jobseekers is likely to persist, potentially exacerbating youth unemployment and its associated social consequences.