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Analysts say the AI age offers bright spots for new graduates

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As AI reshapes entry-level hiring, young Britons are struggling to break in—but the outlook may not be as grim as it seems. Recent job-market weakness and automated screening tools have frustrated graduates like London-based Divine Jacob, who says AI-driven sifts erase “human-to-human” connection. McKinsey reported last year that postings in AI-exposed roles—software, data, design, media, legal and finance—fell 38%, contributing to a squeeze on new grads as UK youth unemployment hit 16% and overall unemployment reached 5.2% in late 2025. Now, analysts say the pendulum is swinging: companies are learning they need workers with AI fluency and strong people-management skills to deploy new tools effectively. Startups such as Riser and BossUp AI are moving to help candidates showcase soft skills and measure “AI readiness.” The near-term job hunt remains bruising, but experts predict demand will rebound for “AI-native” graduates as adoption matures.

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