- Tech jobs are in danger thanks to AI and hiring costs
- Entry-level workers are particularly affected and the situation is getting worse.
- The UK tech industry has seen a 46% drop in graduate jobs
A new report from the Institute of Student Employers (ISE) found that the UK tech industry has seen a 46% drop in tech graduate jobs from 2024, with a further 53% drop projected in 2026.
This probably won’t surprise many, but recent tech graduates are most likely to blame for the dramatic decline in AI jobs. After all, why train a junior worker for basic digital tasks, coding or data analysis when you can ask AI to do it?
The UK is not the only country suffering. Young tech workers are in trouble around the world. The Stanford Digital Economy Lab released statistics confirming that entry-level tech job openings have decreased by 67% between 2023 and 2024, with a 13% drop in employment for 22- to 25-year-olds since AI came onto the scene in late 2022.
All industries at risk
Tech jobs aren’t the only ones facing this problem. Employers reduced hiring by 8% in the last academic year (2024/2025), with another 7% expected for next year, but this figure focuses on responses from three large employers.
“It is a difficult market for students and young people in general. There is not much turnover in the labor market and young people are suffering,” Stephen Isherwod, joint chief executive of ISE, told the Financial Times.
The data suggests that organizations are simply focusing on hiring experienced workers and removing young people from the business structure as a cost-saving measure and to become more efficient.
While companies may see short-term gains with this strategy, it sets up a scenario 10 to 20 years from now where seasoned professionals will retire, but no one has invested in training young people to take their place.
But unfortunately, experienced workers at tech companies can’t necessarily relax, as tech companies have introduced multiple rounds of layoffs, including big names like Amazon, Intel and Microsoft, all of which have cut significant parts of their workforce.
Through: The Registry
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