Young people are applying for jobs in huge numbers.
According to Reed's latest research of 2,000 16 to 24 year olds, those actively looking for work have submitted an average of 17 applications over the past year, with more than half saying they've received no response from employers at all.
From a young person's perspective, it can feel like there simply aren't any opportunities available.
But what does the picture look like from the employer's side?
As part of our ‘Missing generation 2026’ report, Reed commissioned OnePoll to survey 2,000 UK employers across sectors including engineering, technology, accountancy and finance, and health and care. The findings reveal a more nuanced reality.
Far from turning away from early-career talent, most employers say hiring young people is a priority. The challenge is that economic pressures, skills concerns and rising employment costs are making it harder to create opportunities at the scale needed.
Employers want young talent
One of the most striking findings is that employers continue to value young workers highly.
Almost three quarters (73%) of employers say bringing early-career talent into their organisation is a high priority, while 58% report increasing the number of 16 to 24 year olds they have hired over the past three years.
Many organisations are already investing in routes into employment, with 45% offering work experience programmes, 42% apprenticeships, 35% work placements, and 32% internships.
These figures challenge the perception that employers have lost interest in young people. In fact, many businesses recognise that investing in early talent is critical to their future workforce.
So, what's stopping them hiring more?
The research shows four key barriers standing in the way.
The most common concern, cited by 30% of employers, is a perceived lack of suitable candidates. This is closely followed by the cost of training young people (28%), a shortage of job-ready skills (26%) and wider budget constraints (26%).
Economic uncertainty also continues to weigh heavily on hiring decisions, with 22% of employers saying uncertainty about future demand is preventing them from creating more opportunities for young people. A further 22% point to recruitment and employment costs.
This paints a picture of employers caught between long-term workforce needs and short-term financial pressures.
The skills gaps employers keep talking about
There's often frustration when employers say young people aren't ‘work-ready’.
But, our research suggests that many of the skills employers feel are missing are skills that can only really be developed through workplace experience.
When asked which capabilities are most often lacking among young applicants, employers pointed to:
Understanding of the working environment (34%)
Communication skills (33%)
Reliability and timekeeping (32%)
Problem-solving skills (29%)
Teamwork skills (25%)
Interestingly, these aren't primarily technical skills. Employers are largely looking for workplace behaviours and professional confidence.
The challenge is obvious: if young people struggle to access opportunities, how can they develop the very skills employers want to see?
This creates the ‘experience paradox’ highlighted throughout Reed's research. Young people need experience to get a job but need a job to gain experience in the first place.
Skills shortages are already affecting businesses
Employers aren't simply raising concerns about skills gaps. They're already experiencing them.
Nearly three quarters (74%) of employers say their organisation faces skills shortages to some extent.
This means businesses are facing a contradiction. They need talent, but many feel unable to invest in developing future talent because of immediate commercial pressures.
The result could be a workforce pipeline problem that becomes increasingly difficult to solve.
Today's hiring challenge could become tomorrow's leadership crisis
Perhaps the most concerning finding is employers' view of the future.
Nearly three quarters (74%) believe shortages of early-career talent today are likely to contribute to leadership shortages in the years ahead.
For businesses, entry-level hiring isn't simply about filling junior vacancies. It's about developing future managers, specialists, and leaders.
Without a steady flow of young people entering organisations, businesses risk creating significant succession planning challenges. The future leaders many organisations will need in 10 or 20 years' time may never get the opportunity to take that crucial first step onto the career ladder.
Young people bring real value
Despite the challenges, employers remain clear about the benefits of hiring young talent.
Half (50%) say the biggest advantage is the new ideas and fresh perspectives young people bring. Almost as many (49%) cite the opportunity to build a future talent pipeline, while 37% value their digital confidence.
In an economy increasingly shaped by technology and AI, these strengths may become even more important.
Young people are often among the quickest adopters of new technologies and can offer skills and perspectives that complement more experienced colleagues.
Creating more opportunities
The research also points towards potential solutions.
Nearly three quarters (72%) of employers say exempting under 25s from employer National Insurance contributions would make them more likely to create jobs for young people.
Alongside policy changes, employers can take practical action by reviewing hiring practices, recruiting for potential rather than experience, investing in apprenticeships and work experience, and building closer partnerships with education providers.
The good news is that employers haven't given up on young talent. Quite the opposite.
The challenge is creating the conditions that allow organisations to invest in the next generation while managing today's economic realities.
Learn more
These findings form part of Reed's latest research report, ‘The missing generation 2026: What happens when nobody starts at the bottom?’, which explores the barriers facing young people, the risks to employers, and the solutions needed to rebuild pathways into work.
Download the full report to explore the complete findings and recommendations.
