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.
James Tuttiett, global transformation director at FDM Group, said: “Technical capability is accelerating at an extraordinary pace, yet we are facing steep talent and opportunity shortages at the same time.
“It’s not for a lack of talented people, it’s because the pathways that once supported early careers are breaking.”
He added: “To address this, we need to embed AI fluency from day one across education, redesign early career roles so learning accelerates rather than disappears and create new pathways into technology careers for people who would otherwise be excluded.
“It also means moving beyond traditional delivery models and embracing genuine collaboration between humans and machines through experiential learning to give young people the practical skills that businesses desperately need.
“If we get this right, we can deliver the future talent pipeline for over a decade and make sure young people are at the heart of the AI workplace, rather than left behind. We build a more resilient workforce, expand opportunity and show that social mobility and competitiveness can reinforce each other.”