This week, the Chancellor’s announcement of the Autumn Budget on 26 November has reignited conversations about the UK’s ability to deliver on its growth ambitions.
It’s clear that the UK is facing a significant productivity challenge that is impacting these ambitions, and recent figures suggest this is being felt disproportionately by younger people in the job market, especially.
Just 27% of final-year university students had secured a role by February this year, a significant drop from 33% two years ago. It’s also the lowest figure in three decades, barring 2021, and highlights the growing challenge for those early on in their careers entering the workforce.
This isn’t just a concern for the younger demographic, but for employers and the wider economy too. Unlocking the potential of our next generation of talent is essential, and service organisations play an important role.
Looking beyond the challenges of today’s entry-level job market
Several factors are adding to the pressure young job seekers face. Not least, the rise in the number of university graduates has made competition fierce, and standing out is harder than it once was.
At the same time, the number of roles available has taken a hit from increased labour costs and a more cautious approach to hiring: figures from Indeed show that the number of roles advertised for recent grads in June this year fell by 33% year-over-year.
AI has enabled organisations to accelerate the application process, but it has also changed the entry-level job landscape – with increased use of AI and automation for certain tasks which have typically been carried out by more junior workers. Add to this the NI and minimum wage increases, and it is easy to see why jobs for this cohort of school and university leavers are under particular pressure.
However, today’s young job seekers possess attributes that shouldn’t be overlooked. As AI continues to transform the workplace, hiring young people who are digital natives will be critical in maximising its potential and striking the right fusion between human and tech, which is essential for the success of any service-led business.
An opportunity to build skills and drive growth
More fundamentally, if the UK is serious about growth, we need strong political and business leadership, and we need to invest. In some cases, this will mean taking a chance on young people and giving them an opportunity to succeed.
This begins with school leavers, graduates, and others early on in their careers being able to differentiate themselves and demonstrate the value they bring. While technical expertise and intellect will always matter, in today’s market it’s often the human qualities that make the biggest difference – empathy, resilience, communication, and genuine care.
Some of the most inspiring CEOs and Chairs I speak with cite their early experiences on the service frontline as formative in shaping their careers. A role in service can help to develop key leadership qualities, and it’s something I believe today’s young job seekers should consider, as we know service skills can be a significant differentiator for leaders as they progress in their career.
Ultimately, the recruitment decisions we make today will shape careers, businesses, and the economy for years to come. Unlocking the potential of school leavers and graduates isn’t just about individual futures, but also about equipping our workforce and economy with the new generation of skills, resilience, and leadership it needs to prosper in the long run.
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