Job postings for entry-level positions have plummeted across both the United States and the United Kingdom, sparking concerns about the future of young professionals in a shifting labor market. According to recent data, entry-level job listings dropped by 43% in the U.S. and 63% in the UK since June 2022.
Why Are Entry-Level Jobs Disappearing?
This sharp decline is not solely due to the rise of artificial intelligence. Analysts point to a complex mix of factors, including:
- Government budget cuts leading to hiring freezes, especially in public sector roles.
- Higher employment costs (e.g., taxes, compliance) that make companies reluctant to onboard junior staff.
- The increasing automation and outsourcing of entry-level tasks, sometimes to developing markets like India or Brazil.
AI Isn’t the Only Culprit
While the emergence of tools like ChatGPT has triggered a broader conversation about AI replacing jobs, industries with low exposure to automation—such as education and HR—have also seen significant drops in junior job postings.
The Outsourcing Trend
Interestingly, job demand hasn’t vanished—it’s being redirected. Countries with lower labor costs are seeing sustained or even increased hiring for entry-level tasks, suggesting that globalization continues to reshape workforce dynamics.
What the Future Holds
Some reports warn that up to half of jobs for workers under 30 could disappear within five years if current trends persist. However, several economists urge caution against alarmism, pointing out that job markets are cyclical and may rebound as economic conditions stabilize.
What Can Young Job Seekers Do?
- Upskill in areas that are resistant to automation, such as critical thinking, creativity, and people management.
- Explore remote work opportunities in global markets.
- Build experience through internships, freelancing, or certifications while the job market recalibrates.
