“As a result, many dramatically cut back on graduate and entry-level hiring, unknowingly creating a bottleneck of future talent.”
He said: “This was felt two years later, when business confidence rebounded and hiring ramped up.
“Employers suddenly found themselves competing for a limited pool of experienced professionals.”
Between 2022 and 2024, wages for these roles increased by 8% compared to the years before the pandemic.
Accountancy, technology, legal services and engineering jobs saw the biggest pay rises.
Average salaries for finance managers, in-house lawyers with 5-10 years’ experience and cyber security managers rose by over 10% as demand outstripped supply.
Eldridge said: “AI and automation tools are rewriting many traditional job roles.
“While innovation signals progress, it shouldn’t sacrifice a whole group of professionals.
“Graduate and entry-level positions are quickly being deemed ‘administrative placeholders’ instead of crucial to feeding future talent demands.”
Jessica Holt, managing director for Robert Walters outsourcing EMEA, said: “We are already seeing the damage this outlook is causing.
“With fewer people progressing up the career ladder, organisations are finding themselves competing for a smaller pool of experienced hires, often at a higher cost and with less flexibility to shape talent internally.”
Data also found that 42% of entry-level workers said they now feel they need to upskill because of AI’s impact on their job prospects.
Holt said: “Roles that once gave early-career professionals an entry point into the professional world are being streamlined or removed altogether, leaving many people at the start of their careers facing a difficult gap.
“They’re expected to bring more advanced skills to the table but are given fewer opportunities to learn those skills on the job.
“Businesses are also losing a key stage in how they build their teams.”
Holt added: “Without entry-level roles to cultivate subsequent skilled talent pools, the UK risks falling behind in developing sectors, like green energy and advanced technology, which are already facing critical skills shortages.”
Eldridge said: “The data speaks to the challenges that can arise in future hiring plans when entry level roles are cut too deeply.
“This isn’t just about future costs, but the future health of our labour market. Something which requires careful foresight and planning, not looking to emerging technologies for a single solution.
“For employers, adopting a holistic approach which prioritises long-term workforce development, targeted upskilling and the application of AI alongside human insights will help ensure they avoid past mistakes while nurturing a talent pool who can meet the demands of the future.”