Research from the Work Foundation at Lancaster University found more than one in three employers cut entry-level jobs, with youth worklessness described as a national crisis.
36% of employers reduced entry-level jobs for people aged 16-24 in the past year, with cuts highest among medium-sized employers at 48% and large employers at 46%, compared to 24% of small employers.
Nearly three quarters (73%) of employers said the level of young people not in education, employment or training (NEET) is a national crisis, and 76% said employers have a responsibility to do more to support young people into work.
The research found average weekly starter vacancies accessible to someone entering the workforce for the first time fell by 49% between 2016-17 and 2025-26.
Three in five employers (60%) said young people aged 16-24 are generally ready for the world of work, compared to 17% who disagreed.
59% offered placements, apprenticeships, internships or work experience, and the same share provided feedback to unsuccessful young applicants.
Nearly two thirds of firms prioritised education qualifications (63%) or prior work experience (62%).
44% used artificial intelligence (AI) or automated systems to screen applications, and 43% said investment in AI or automation reduced entry-level roles.
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Ben Harrison, director of the Work Foundation at Lancaster University, said: “Young people are entering one of the toughest labour markets in years, facing intense competition for a shrinking number of entry-level jobs and fewer opportunities to get a secure foothold in work.
“Our research suggests the challenge is not simply how to provide young people with more employment support.
“Opportunities for young people are declining, and for those living in weaker local labour markets, the options they face are constrained.”
Harrison added: “But that doesn’t mean Government should step back from its drive to improve job security and pay – both of which will be key in reducing youth unemployment over the long term.
“The focus must remain on boosting the quality and quantity of roles available to young people.
“And that means doing more to directly create good jobs, while also providing additional support to employers to do likewise.”
Dr Divya Jyoti from Lancaster University Management School, said: “These findings highlight a worrying double pressure on young people looking for work.
“Employers are reducing entry-level hiring at the same time as AI and automated systems are playing a growing role in deciding who gets through the recruitment process.
“In our research, young people described applying repeatedly for jobs and hearing little or nothing back.”
Jyoti added: “Some were left wondering whether their application had been seen by a person at all, or whether they had simply been filtered out by an automated system.
“Over time, that can damage confidence and make an already unforgiving jobs market feel impossible to navigate.
“AI indeed has the potential to support workplaces, but if investment in automation is reducing entry-level roles and making recruitment more impersonal, we risk making it even harder for young people to take their first step into work, which can have significant costs for society in the long term.”