Industry leaders call for graduate pathway rethink as AI reshapes career market

Industry leaders have called for a fundamental rethink of graduate job pathways as artificial intelligence (AI) and economic pressures reshape the early-career labour market.

A recent event hosted by techUK brought together employers and labour market experts to assess the real impact of AI on entry-level roles and identify practical steps to support young people entering the workforce.

The discussion comes against a challenging backdrop for early-career professionals.

Unemployment among 16 to 24-year-olds rose to 16.1% at the end of last year, the highest level in more than a decade, leaving many struggling to secure roles and develop future-ready skills.

Research from FDM Group presented at the event found that while only 2% of employers expect a decline in graduate roles directly due to AI, more than half anticipate that AI will underpin all early-career roles in the near future.

Speakers highlighted the need for skills-based hiring, stronger investment in training and closer collaboration between industry and education providers.

They warned that without coordinated action, the erosion of traditional entry-level roles could have lasting implications for innovation, productivity and long-term talent pipelines.

The event forms part of ongoing work by techUK and FDM Group to explore how organisations can adapt workforce strategies to ensure inclusive growth while navigating rapid technological change.