- Tech jobs are in danger thanks to AI and hiring costs
- Entry level workers are particularly affected, and it’s getting worse
- UK tech industry has seen a 46% drop in graduate jobs
A new report from the Institute of Student Employers (ISE) has found that the UK tech industry has experienced a 46% drop in tech graduate jobs from 2024, and a further 53% drop projected in 2026.
This probably won’t come as much of a shock to many, but recent tech graduates most likely have AI to blame for the dramatic decline in jobs on offer. After all, why train a junior worker for basic digital tasks, coding, or data analysis when you could ask AI to do it?
The UK isn’t the only country suffering. Junior tech workers are in trouble across the world. The Stanford Digital Economy Lab released statistics confirming that entry level tech job postings are down 67% between 2023-2024, with a 13% drop in employment for 22-25 year-olds since AI arrived on the scene at the end of 2022.
All industries at risk
Tech jobs aren’t the only ones facing this issue. Employers reduced hiring by 8% in the last academic year (2024/2025), and another 7% is predicted for the coming year – but this figure focuses on responses from three large employers.
“It is a tough market for students and young people in general. There is not much churn in the labour market and young people are suffering,” Stephen Isherwod, joint chief executive of ISE, told the Financial Times.
The data suggests that organisations are simply focusing on hiring experienced workers, and cutting juniors out of the company structure as a cost saving measure, and to become more efficient.
Whilst companies may see short-term gains with this strategy, it sets up a scenario for 10-20 years time when experienced professionals are set to retire, but no one has invested in training any juniors to take their place.
But, unfortunately experienced workers at tech firms can’t necessarily relax, as tech firms have introduced multiple rounds of layoffs, including huge names like Amazon, Intel, and Microsoft all slashing significant chunks of its workforce.
Via: The Register
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