Article · AI translation
IT Home reported on October 23 that, according to a Bloomberg report on October 22, a new study by Boston Consulting Group shows that young people aged 18 to 24 in the UK are finding it increasingly difficult to enter high-paying sectors such as technology and finance, reflecting the severe employment situation facing Generation Z.
After analyzing official data, Boston Consulting Group found that the number of employed 18- to 24-year-olds in the UK information and communications sector has fallen sharply by 30% since the end of 2022. Over the same period, overall employment for this age group remained largely unchanged. The number of young employees in finance also fell by 10%. Together, the 2 sectors lost about 45,000 young employees, leaving approximately 163,000, a decline of 22%.
The study further highlights the employment difficulties facing young people in the UK: 18- to 24-year-olds are becoming increasingly scarce in some of the sectors with the highest pay and productivity.
On the same day, Barclays announced that it would cut 5,000 jobs to reduce costs as it adopts artificial intelligence technology.
Raoul Ruparel, a senior director at Boston Consulting Group’s Centre for Growth, warned that companies are increasingly reluctant to hire people without work experience, making it harder for young people to enter some of the UK’s important sectors. “AI may be one reason, but it is unlikely to be the only one. Most of the job losses occurred in 2023 and 2024, when AI tools were not as powerful as they are today. The technology sector’s downturn after the pandemic, combined with the difficulty remote work creates for companies training new hires, may also have played a role.” The data used in the study runs through the end of 2025.
The employment prospects of UK university graduates are also causing growing concern. Young people often find it harder to secure work when the labor market is weak. At present, the number of job openings is low, employers’ labor costs are rising, and AI technology is developing rapidly.
Official data shows that the UK youth unemployment rate exceeded 16% this summer, its highest level since 2014. Young people who can enter finance or information technology have the opportunity to earn some of the highest salaries in the UK. The average annual salary in finance is nearly £52,000 (IT Home note: approximately 465,000 yuan at the current exchange rate), while the figure in information technology is slightly below £50,000 (approximately 447,000 yuan at the current exchange rate).
Ruparel noted that these sectors are among the UK’s most productive and have some of its highest concentrations of export activity. Whatever the cause, if entry-level jobs that allow newcomers to gain experience while working disappear, the UK risks losing a pathway for continuously developing experienced talent for these sectors.
Since 2019, construction, transportation and storage, and arts, entertainment and recreation have performed best at employing young people aged 18 to 24.