Since the launch of ChatGPT in November 2022, the job market for entry-level professionals in the UK has undergone significant changes. According to The Times, citing research from the job search platform Adzuna, the number of junior openings—including internships, graduate roles, and positions with no degree requirement—has dropped by 31.9%. The share of such jobs in the market fell from 28.9% in 2022 to just 25% by May 2025, the lowest since July 2020, when the economy was still reeling from the effects of the pandemic. Here's how artificial intelligence (AI) is reshaping the labor market—and what it means for young professionals.
Why Are There Fewer Job Openings?
The main reason experts cite for the decline is the automation of tasks using AI. Companies are increasingly leveraging tools like ChatGPT to handle routine work previously done by junior staff—from customer service inquiries to data analysis and content writing. This boosts efficiency and cuts labor costs. James Neave, Head of Data Science at Adzuna, commented: “Reducing entry-level hiring increases productivity and saves money.”
Other contributing factors include:
Rising labor costs: In the UK, increases in national insurance and the minimum wage have made hiring more expensive. Economic uncertainty: Global events like the pandemic and geopolitical conflicts have made companies more cautious about expanding their workforce. Regulatory changes: New laws like the Employment Rights Bill make firing employees more complex, which deters companies from hiring new, inexperienced workers.The hardest-hit sectors include retail (–78.2%), IT, finance, accounting, and administrative roles.
Case in Point: BT’s 10,000 Jobs at Risk
A notable example of large-scale automation is British telecom giant BT, which in May 2023 announced plans to replace 10,000 jobs with AI by the end of the decade. The cuts will mainly affect call handling and network diagnostics roles. CEO Allison Kirkby noted that advances in AI could lead to even broader layoffs. Amazon is another example, rapidly replacing human roles with robots and AI systems in logistics and customer service.
Grim Outlook: Half of Office Jobs at Risk
Dario Amodei, head of AI startup Anthropic, issued a stark warning: AI could eliminate up to 50% of entry-level office jobs within the next five years, potentially increasing unemployment by 10–20%. Tools like ChatGPT are already capable of handling tasks related to programming, data analysis, and content creation with impressive speed and accuracy. For instance:
Amazon reports that ChatGPT effectively handles customer queries, writes training materials, and analyzes corporate strategy. Generative AIs such as ChatGPT and Claude can write code faster than junior developer teams, reducing demand for entry-level programmers.However, some experts, including Columbia Business School’s Oren Netzer, argue that AI is more of a productivity enhancer than a total replacement: “Coding is a good example—AI can write decent code, but it’s more of a helper than a replacement.”
What’s Happening in the Broader Job Market?
Despite the decline in entry-level roles, the overall UK job market is showing signs of recovery:
Wage growth: The average advertised salary rose by 9.4% year-over-year to £42,403, far outpacing inflation (3.4%). Increase in job postings: Total vacancies grew 0.49% from May 2024, reaching 858,465 positions. Seasonal sectors on the rise: Logistics and warehousing (+9.77%), creative roles (+6%), and hospitality (+5.61%) all saw job increases.However, competition is intensifying: In May 2025, there were 2.02 applicants per job—up from 1.98 in April. Meanwhile, sectors like healthcare (–10.21%) and administration (–9.22%) also saw declines, partly due to changes in visa policy and further automation.
Consequences for Young Professionals
The decline in entry-level openings poses major challenges for younger workers:
Limited experience: Fewer internships and junior roles make it harder to enter professions, potentially slowing career development for an entire generation. Rising youth unemployment: Forecasts of up to 20% unemployment among young professionals are alarming to experts and policymakers. Need for new skills: Job seekers must now learn how to work with AI to remain competitive. In fact, professionals with AI experience earned 56% more on average in 2024.Nonetheless, some institutions, such as the Tony Blair Institute, point out that AI could also create new jobs in fields like AI system development and governance—provided governments invest in reskilling and education.
The Bigger Picture: A Global Shift
The UK's job market is just one example of a broader global trend. According to Goldman Sachs, generative AI could affect 300 million jobs worldwide by 2030, while McKinsey estimates that 30% of all working hours in the U.S. could be automated. Posts on X (formerly Twitter) reflect growing anxiety among youth, many of whom see AI as a “threat to the future” and call for tighter tech regulation. Skeptics, however, argue that AI’s impact is overblown and that economic pressures like tax increases play a more significant role.
In Summary…
The launch of ChatGPT in 2022 has been a catalyst for major labor market changes. A 31.9% drop in entry-level roles signals companies’ growing preference for efficiency and automation—but also creates serious barriers for new professionals. Predictions of widespread displacement underscore the urgent need for adaptation, including retraining, upskilling, and government support. At the same time, rising wages and growth in other sectors offer some hope. The future of the labor market will hinge on finding the right balance between technology and human potential.
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