The Challenge

The rapid advance of AI is reshaping the opportunities open to young people.  The latest international evidence suggests that AI labour-market effects are emerging first through changes to hiring and job design, with entry-level workers most exposed to reduced hiring opportunities and changing employer expectations. Tech is at the vanguard of this upheaval, as the boundaries blur further between ‘tech’ and ‘non tech’ roles. 

• In the UK, entry-level tech roles accounted for around one in eight tech vacancies in 2026, down from around one in six before 2020.

• Software development appears to have been hit hardest. UK software development hiring was around 40% lower in 2026 than at its 2022 peak, while employment among 22–25-year-old software developers has declined by almost 20% in the USA since 2024.

• More than one in three young workers globally are in occupations where AI is expected to significantly change how work is carried out.

Not all groups are equally equipped to navigate this period of change. Young people from backgrounds already underrepresented in the tech sector face interlocking challenges as entry-level routes become harder to access, they have fewer opportunities to develop the skills and access the knowledge needed to succeed in a competitive landscape.  

We are funding further research into the labour market transformations being brought about by AI.