AI disruption and economic uncertainty drive UK ‘Graduate Jobpocalypse’

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1. https://graduatecoach.co.uk/blog/the-graduate-jobpocalypse-why-entry-level-roles-are-vanishing/ - Please view link - unable to able to access data
2. https://www.reuters.com/world/us/moderate-us-job-openings-weak-hiring-underscore-softening-labor-market-2025-09-30/ - In August 2025, U.S. job openings modestly increased by 19,000 to 7.227 million, while hiring declined by 114,000 to 5.126 million, reflecting a stagnating labor market. The job openings-to-unemployed ratio slipped to 0.98, indicating weaker demand for workers. Contributing factors include trade policy uncertainty, the rise of AI, and an immigration crackdown, which constrained labor supply. Hiring losses were most significant in sectors like transportation and food services. Meanwhile, layoffs dropped, and resignations fell for the third consecutive month, pushing the quits rate to an eight-month low of 1.9%. Consumer sentiment also weakened, with only 26.9% viewing jobs as plentiful, the lowest since early 2021. The Conference Board's labor market differential dropped to 7.8, suggesting potential rises in unemployment. Amid this sluggish labor trend, the Federal Reserve cut rates in September and may ease further in October. However, a potential government shutdown could delay critical data releases, complicating Fed decision-making. Slower hiring, declining wage confidence, and reduced consumer willingness to make major purchases underscore economic caution despite strong GDP and spending reports earlier in the year.
3. https://moneyweek.com/economy/uk-economy/gen-z-is-facing-an-ai-jobs-bloodbath - The article discusses the challenges Gen Z faces in entering the workforce amid rapidly advancing AI technologies. It highlights that recent graduates are encountering the toughest job market since 2018, with companies like PwC cutting back on recruitment. Despite economic differences across countries, the trend of disappearing entry-level jobs is consistent due to AI's ability to handle tasks traditionally assigned to new graduates, such as document drafting and spreadsheet analysis. This shift is removing the foundational "first rung" in many careers, increasing youth unemployment and jeopardizing future contributions to the economy. The author argues that regulatory responses like banning AI or restricting its use would stall productivity and are impractical. Instead, it proposes a radical deregulation of the labor market for under-30s. Suggestions include exempting this age group from certain employment protections and offering tax incentives for hiring young workers, as seen in Portugal. The article concludes that only extensive deregulation and proactive job creation can offset the significant disruption AI is causing to early career opportunities for Gen Z.
4. https://www.reuters.com/business/world-at-work/us-layoffs-fall-september-year-to-date-planned-hiring-lowest-16-years-2025-10-02/ - In September 2025, U.S. employers announced a 37% decrease in planned layoffs compared to August, totaling 54,064, according to a report by Challenger, Gray & Christmas. Despite this drop, year-to-date layoffs have reached 946,426, the highest since 2020. Meanwhile, planned hiring has dwindled to 204,939, the lowest level since 2009, pointing to a stagnating labor market amid rising costs and transformative technology like artificial intelligence. The Federal Reserve responded by cutting interest rates by 25 basis points to 4.00%-4.25% to spur employment. The effects of President Trump’s policy shifts—including trade policies, immigration enforcement, and federal workforce reductions—along with AI-related job losses, particularly in the tech sector, are dampening both demand and supply in the labor market. The government sector led planned layoffs with 299,755 cuts, part of the administration’s efforts to reduce the federal workforce. The situation is further complicated by the ongoing government shutdown, which has suspended key economic reports such as payroll, jobless claims, and trade data, adding to uncertainty in policymaking and economic planning.
5. https://www.tomshardware.com/tech-industry/artificial-intelligence/ai-is-eating-entry-level-coding-and-customer-service-roles-according-to-a-new-stanford-study-junior-job-listings-drop-13-percent-in-three-years-in-fields-vulnerable-to-ai - A recent Stanford University study reveals that artificial intelligence (AI) is significantly impacting entry-level job opportunities, particularly in software development, customer service, accounting, and administrative roles. Over the past three years, job listings in these AI-susceptible fields have dropped by 13%, especially affecting workers aged 22-25. Conducted by economist Erik Brynjolfsson and researchers at Stanford's Digital Economy Lab, the study analyzed data from payroll processor ADP, covering millions of employees across thousands of companies. Despite an MIT study indicating that AI has not substantially increased overall business profitability, many companies continue to adopt the technology. Interestingly, more experienced workers appear to benefit, as AI boosts their productivity, allowing them to absorb tasks previously handled by entry-level roles. While some sectors like nursing technician jobs have seen growth, the broader trend raises concern about the future development of junior professionals who traditionally gained skills through these now-declining roles. The study fuels ongoing debate around AI’s dual impact—both as a job eliminator and a productivity enhancer—and poses critical questions about workforce development and the evolving nature of work in the AI age.
6. https://apnews.com/article/f686eab61f7d6b702ca10b12b0250498 - The U.S. labor market is showing significant signs of decline, adding just 22,000 jobs in August 2025—far below economists’ expectations and marking a sharp drop from previous months. The unemployment rate rose to 4.3%, the highest since 2021. Economists attribute the slowdown to a mix of factors, including President Trump's erratic economic policies, such as sweeping tariffs and immigration crackdowns, as well as 2022-2023 interest rate hikes by the Federal Reserve. Key sectors such as manufacturing and construction, heavily impacted by tariffs and a reduced immigrant workforce, are shedding jobs. Federal workforce cuts and employer hesitation driven by economic uncertainty add to the strain. Older demographics, reduced immigration, and rising use of artificial intelligence, particularly affecting young workers, further dent labor supply and job creation. President Trump’s response to poor job numbers includes firing key economic officials and pressuring the Federal Reserve to cut interest rates. Economists anticipate a rate cut in the next Fed meeting, which may stimulate spending and investment. However, consumer confidence is falling, with many Americans expecting rising unemployment, suggesting risks of further economic deterioration.
7. https://www.reuters.com/lifestyle/bootcamp-bust-how-ai-is-upending-software-development-industry-2025-08-09/ - The Reuters article "From Bootcamp to Bust: How AI is Upending the Software Development Industry" explores the dramatic decline in job prospects for coding bootcamp graduates in the wake of rapid advances in artificial intelligence. It follows Jonathan Kim, who spent $20,000 on a coding bootcamp only to find himself unable to land a job, with AI tools like ChatGPT accelerating the replacement of entry-level coding roles. Once seen as a gateway to six-figure tech jobs, bootcamps are now faltering due to market saturation, changing employer demands, and a shift back to hiring graduates from elite universities. Bootcamp job placement rates have plummeted, with Codesmith’s part-time program employment rates falling sharply between 2021 and 2023. The industry faces worsening odds as AI proves especially well-suited for coding — a task that AI handles efficiently due to its binary, example-rich nature. While junior tech job opportunities dwindle, experienced AI developers now command multimillion-dollar compensation in a booming AI market. In response, some bootcamps are adjusting curricula to reflect AI trends, but for graduates like Kim, these efforts come too late, as they are forced to seek employment outside the tech field.