- Tech jobs are at risk from AI and hiring costs
- Entry-level workers are particularly hard hit, and it’s getting worse
- The UK tech industry saw a 46% drop in graduate jobs
A new report from the Institute of Student Employers (ISE) reveals that the UK tech industry has seen a 46% drop in tech graduate jobs compared to 2024, with a further 53% drop predicted in 2026.
This probably won’t surprise many people, but recent tech grads most likely blame AI for the dramatic decline in job opportunities. After all, why train a young worker in basic digital tasks, coding or data analysis when you could ask AI to do it?
The UK is not the only country suffering. Young tech workers are struggling around the world. The Stanford Digital Economy Lab released statistics confirming that entry-level tech job openings declined by 67% between 2023 and 2024, with a 13% drop in employment for 22-25 year olds since the arrival of AI in late 2022.
All industries at risk
Tech jobs aren’t the only ones facing this problem. Employers reduced their hiring by 8% in the last academic year (2024/2025), with a further 7% planned for the coming year – but this figure focuses on responses from three large employers.
“It’s a tough market for students and young people in general. There’s not a lot of churn in the job market and young people are suffering,” Stephen Isherwod, co-chief executive of the ISE, told the Financial Times.
Data suggests that organizations are simply focusing on hiring experienced workers and eliminating juniors from the company structure in an effort to reduce costs and become more efficient.
While companies may see short-term gains from this strategy, it foresees a scenario 10-20 years from now where experienced professionals will retire, but no one has invested in training juniors to take their place.
But unfortunately, experienced workers at tech companies can’t necessarily relax, as tech companies have introduced several rounds of layoffs, including big names like Amazon, Intel, and Microsoft, all of which have reduced significant portions of their workforces.
Via: The register
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