Based on surveys of 2,000 UK employers and 2,000 young people aged 16 to 24, this report explores why entry-level opportunities are disappearing, what this means for businesses, and how organisations can create pathways into work for the next generation.
Download the report to discover:
Why entry-level opportunities are disappearing
The growing ‘experience paradox’ facing young people
How employers view the skills and hiring challenges affecting early careers
The risks shrinking talent pipelines pose to future leadership and business growth
Practical examples of successful early-careers initiatives
Policy and employer-led solutions to help prevent a ‘missing generation’ of talent
About the research
The UK's entry-level jobs market is under pressure.
Young people are finding it increasingly difficult to gain the experience needed to start their careers, while employers are grappling with rising employment costs, economic uncertainty, skills shortages, and the growing impact of AI.
The result is a disconnect. While 73% of employers say recruiting early-career talent is a priority, many are finding it harder to create opportunities. Meanwhile, young people face a shortage of suitable roles and increasing demands for experience before they've had the chance to gain it.
This report explores the causes behind this trend, the risks for businesses and society if it continues, and the practical actions employers and policymakers can take to reverse it.
Featuring insights from
Alongside exclusive Reed research, this report includes perspectives from leading experts in early careers, workforce development, and talent strategy.
James Reed CBE, Chairman and CEO, Reed
Louise Reed, Future Skills Director, Reed Talent Solutions
Nicola Luke, Senior Manager, Next Generation Strategy and Programmes, BT Group
Phil Athersmith, Head of Early Careers & Skills Development (Submarines), BAE Systems
Emma Gibson, People Capability Partner and Early Careers Lead, Evri
Petra Wilton, Director of Policy and External Affairs, Chartered Management Institute (CMI)
Learn how these organisations are successfully attracting, developing, and retaining early-career talent while building future-ready workforces.
Key findings
Survey with 2,000 young people in the UK, aged 16-24, about their experiences trying to enter the workforce:
Of those looking for work or in employment or education (68%), the average amount of applications respondents have made for jobs, apprenticeships, work placements or internships within the past 12 months was 17.
On average those people spent nearly five months looking for work.
On top of this many feel trapped, the biggest barriers they face are a lack of work experience (29%), a shortage of suitable roles (28%) and entry-level jobs requiring previous experience (24%).
The impact extends beyond employment prospects, with 48% reporting financial pressure, 44% increased stress or anxiety and 37% lower confidence as a result of difficulties finding work.
Reflecting the challenges they face, almost half of those surveyed (46%) believe opportunities to get into work are worse than those available to previous generations.
Survey with 2,000 employers about their attitudes to early careers and the entry-level workforce:
Nearly three quarters (73%) think it is a high priority to bring early talent into their business.
And most provide a route into work, led by work experience (45%), apprenticeships (42%), work placements (35%), and internships (32%). However, 10% offer no early-careers programmes.
Hiring ambitions are being held back by a perceived lack of suitable candidates (30%), the cost of training young people (28%), gaps in job-ready skills (26%), and budget constraints (26%).
Employers most often see young applicants lacking an understanding of the working environment (34%), communication skills (33%), and reliability or timekeeping (32%).
The consequences may be long term: 74% believe shortages of early-career talent today are likely to contribute to future leadership shortages.
Employers believe reducing National Insurance could unlock more opportunities
Rising employment costs are making it harder for organisations to create entry-level opportunities. That's why James Reed CBE is calling on businesses, entrepreneurs, and government to unite and prevent a ‘missing generation’.
Our research found:
72% of employers say removing employer National Insurance contributions for workers under 25 would make them more likely to create jobs for young people.
63% of young people aged 16-24 believe this change would improve their chances of getting or keeping a job.
Rising employment costs remain one of the biggest barriers preventing organisations from creating more entry-level opportunities.
I think the issue goes beyond the workforce. We're potentially creating a lost generation of young people who are struggling to find work at the start of their careers. That's a serious concern because early unemployment can have lasting consequences.
Chairman and CEO, Reed
Download the report
The future workforce depends on the opportunities we create today.
Download ‘The missing generation 2026’ to understand what's driving the decline in entry-level opportunities, why it matters for employers, and how organisations can help ensure nobody misses the first step of their career journey.