If you’re a young jobseeker in the UK right now, you’re not imagining it: the market is genuinely tougher than it’s been in over a decade. Youth unemployment (16-24 year olds) has climbed sharply since 2022 and understanding why is the first step to navigating around it.

The scale of the problem

Youth unemployment stood at around 16.2% in early 2026, more than double the 9.2% low recorded in mid-2022. That’s roughly 729,000 young people out of work, alongside close to a million classed as NEET (not in education, employment, or training). Business groups have warned the rate could climb further still over the next year. London has been hit hardest, with youth unemployment there running well above the national average, while other regions have fared considerably better.

For context, this is a much steeper rise than for the workforce as a whole. Young people account for a disproportionate share of the total increase in unemployment since 2022, despite making up a much smaller slice of the working-age population.

What’s driving it

A few forces are combining at once:

• A weaker hiring market generally. Job vacancies across the UK have fallen to their lowest level in years, and when employers hire less overall, entry-level roles are usually the first to be cut back.
• Rising costs of employing young workers. The National Minimum Wage for younger age bands has risen sharply over the past couple of years, on top of increases to employer National Insurance. Combined, this has made junior hires notably more expensive in real terms, which understandably makes some employers more cautious.
• AI and automation reaching entry-level tasks. Routine tasks that once gave graduates and school-leavers their first foothold, data entry, basic admin, first-line customer service, are increasingly handled by AI tools. Several major employers, particularly in accountancy, legal, and financial services, have already scaled back graduate intakes as a result.
• Employers leaning on experience. With fewer vacancies to fill, businesses are more inclined to hire someone who needs less training and can contribute from day one, which puts candidates without a work history at a disadvantage.
• Rising long-term sickness and inactivity. A growing number of young people are economically inactive due to long-term health conditions, a trend that has accelerated since the pandemic and adds further complexity to the picture.

What this means if you’re job-hunting

None of this means finding work is impossible, it means the approach needs to be a bit sharper. A few practical steps that make a real difference:

• Get specific about what you can offer. “I’m a hard worker” doesn’t stand out. Naming a concrete skill, a piece of software you know, a project you delivered, a qualification you hold, does.
• Don’t rule out temp or contract work. With permanent hiring tight, temporary and fixed-term roles are often where employers are still willing to take a chance on someone new. They’re also a genuine route into permanent positions once you’re in the door and have proven yourself.
• Lean into sectors that are still hiring. Some industries have held up far better than others. A good recruiter can tell you honestly where the demand actually is, rather than where you assumed it would be.
• Use AI as a tool, not a threat. Employers increasingly value candidates who can use AI tools competently in their own work, this is becoming a basic expectation rather than a nice-to-have, especially in office-based roles.
• Keep your CV honest and tight. With more applicants per vacancy, recruiters and hiring managers are moving fast. A clear, well-formatted CV that gets straight to relevant experience will get read; a cluttered one often won’t.
• Register with a recruitment agency early. Agencies often hear about vacancies before they’re advertised publicly, and a good consultant will match you to roles that suit your actual skills and circumstances, saving you from applying blind into a crowded market.

The bottom line

The current youth jobs market is difficult, and it’s the result of several economic pressures landing at once rather than any failing on the part of young jobseekers. But within that market, opportunities do still exist, particularly for candidates who present their skills clearly, stay open to temporary and contract routes, and get the right support behind them.

If you’re a young jobseeker looking for guidance, or an employer wondering how to bring young talent into your business cost-effectively, get in touch with the team at Shepherd Stubbs. We’re here to help.