Boston Consulting Group's read of official payroll figures shows a sharp pullback for younger workers in top-paying fields. Since late 2022, payroll employment for 18 to 24-year-olds within the information and communication sector has fallen by 30%, while finance is down 10%.
Together, that is a slide of 45,000 roles for this age group across the two sectors, leaving around 163,000 jobs - a 22% decline - even as employment for 18 to 24-year-olds overall changed little. BCG said the dataset runs to the end of 2025. Youth unemployment topped 16% over the summer, the highest since 2014, according to official figures.
Raoul Ruparel, who serves as a senior director in BCG's Centre for Growth, said young people "are being squeezed out of some of the UK's most important sectors" as companies grow less willing to take a chance on those with limited experience. He noted that "AI may be playing a part, but it's unlikely to be the whole story."
Ruparel pointed out that "much of the fall happened in 2023 and 2024, before today's more capable AI tools." He also cited a tech slump after the pandemic and the shift to remote work, which makes training juniors harder. Separately, Barclays Plc said on Thursday it will eliminate 5,000 positions to cut costs as it brings artificial intelligence into its operations.
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Pay is a big part of the story. Average annual earnings are almost £52,000 in finance and just under £50,000 in IT, among the highest in the UK. At the same time, a dearth of openings has come alongside rising labor expenses and swift progress in AI.
From 2019 onward, 18 to 24-year-olds have logged the quickest growth in jobs across construction, transport and storage, as well as arts and recreation. Ruparel warned that if entry-level pathways that provide on-the-job learning vanish, the flow of seasoned talent that these sectors depend upon could run dry. For investors, shifting early career pathways can influence wage trends, productivity, and where future leadership talent accumulates across sectors.
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