The UK job market for entry-level roles has suffered a sharp downturn, with new figures revealing a 32% drop in vacancies since the debut of ChatGPT in November 2022.
According to research from job search platform Adzuna, early-career opportunities — including graduate positions, internships, apprenticeships, and roles requiring no formal degree — have significantly declined as businesses increasingly adopt artificial intelligence to streamline operations and cut costs.
Entry-level positions now account for just 25% of all advertised jobs in the UK, down from 28.9% in 2022, signalling a notable contraction in the job market for school leavers and recent graduates.
The findings highlight the growing influence of AI in reshaping the UK employment landscape. Major employers are leveraging AI tools to replace human roles, citing efficiency gains and cost-cutting measures.
Earlier this month, BT’s Chief Executive, Allison Kirkby, hinted that AI advancements could trigger further redundancies, building on the company’s existing plan to reduce its workforce by up to 55,000 by the end of the decade.
Dario Amodei, CEO of $61bn (£44.5bn) AI firm Anthropic, issued a stark warning, predicting that artificial intelligence could eliminate up to half of all entry-level office jobs within five years, potentially driving unemployment up by 10% to 20%.
Adzuna’s data coincides with a similar alert from rival job site Indeed, which reported a 33% year-on-year drop in graduate job listings as of mid-June 2025 — the most challenging market for university leavers since 2018.
Corporates are increasingly deploying AI in roles traditionally filled by people. Swedish fintech giant Klarna has revealed that its AI-powered assistant now handles two-thirds of all customer service interactions.
Likewise, IBM has begun substituting parts of its HR workforce with AI agents, although it has simultaneously increased hiring in tech-focused roles such as software development and sales.
The debate continues over whether AI will ultimately be a net creator or destroyer of jobs. The International Monetary Fund estimates that 60% of jobs across developed nations, including the UK, are exposed to AI — with half of those potentially facing negative disruption.
However, the Tony Blair Institute suggests the private sector could still benefit if AI adoption leads to the emergence of new job categories.
A separate report by consultancy firm PwC revealed that UK workers with AI expertise earned 56% more on average than those without in 2024, up from 25% the year before.
The study also noted a rapid evolution in the skillsets demanded by employers — shifting 66% faster in AI-exposed sectors such as finance, compared with slower-moving fields like physiotherapy.
Responding to these developments, Technology Secretary Peter Kyle urged UK workers and businesses to “act now” in upskilling for the AI era. “Most people approach AI with trepidation,” he said. “But once they start using it, that quickly turns into exhilaration. It’s simpler and more rewarding than many expect.”
