One in five unemployed youth in the UK have been out of work for more than a year, according to new analysis from the Trades Union Congress (TUC), prompting calls for urgent expansion of the government’s Jobs Guarantee scheme.
The figures show that long-term youth unemployment has more than doubled over the past three years, rising from 53,000 to 129,000 among 18–24-year-olds. The data highlights a growing crisis facing young workers, with prolonged periods out of work damaging long-term career prospects, earnings and skills development.
At the same time, wider labour market shifts are making it harder for young people to access entry-level roles. Recent research found that one in five companies have stopped hiring entry-level workers because of AI, as businesses restructure their workforce around automation and new technologies.
AI RESHAPING ENTRY-LEVEL ROLES
The trend reflects a broader transformation in hiring practices, with entry-level roles – often involving routine tasks – among the most vulnerable to AI disruption. The challenge for young workers is expected to intensify. Other research shows that three in ten companies plan to replace employees with AI by 2026, highlighting the scale of technological change facing the labour market.
Surveys indicate that automation is already influencing hiring decisions, with companies reducing junior roles and prioritising efficiency gains. This aligns with wider research showing that AI is increasingly replacing routine entry-level tasks and reshaping how organisations structure their workforce.
MORE ACTION NEEDED
While the government has committed to expanding its Jobs Guarantee scheme, the TUC says more ambitious action is needed. The union body is calling for:
- Earlier access to the scheme
- More placements to meet demand
- Inclusion of young people not on benefits
Nearly half of young people not in education, employment or training are currently excluded from support.
JOB GUARANTEE PROGRAMMES
The TUC argues that job guarantee programmes deliver long-term returns, generating more in tax revenue than they cost over time. Early access to work is seen as critical to preventing long-term unemployment and improving lifetime earnings.
“Too many young people in Britain are stuck out of work for extended periods of time, and that has long-lasting effects,” said TUC General Secretary Paul Nowak.
He warned that wider economic instability – including the impact of global conflict – could further weaken job prospects, as reported.
The TUC is urging ministers to accelerate delivery and expand support to prevent long-term damage to young people’s employment prospects. Without intervention, unions warn that a combination of economic instability and technological disruption could leave a generation struggling to access stable work.
HOW TO TACKLE YOUTH EMPLOYMENT
Employers can play a key role in tackling youth unemployment and adapting to workforce changes driven by AI. Key steps employers should consider:
- Maintain entry-level hiring pipelines alongside AI adoption.
- Invest in training and reskilling for early-career workers.
- Use AI to augment – not replace – junior roles.
- Partner with government schemes and education providers.
- Build long-term talent strategies rather than short-term cost savings.
IMPACT ON YOUNG WORKERS
Young people entering the jobs market face a more competitive and rapidly changing environment. If you are looking for early career roles, you should consider the following to improve job prospects:
- Develop skills that complement AI, such as problem-solving and communication.
- Explore training, apprenticeships and job guarantee schemes.
- Stay adaptable as job roles evolve.
- Build experience through alternative pathways where possible.
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