Cutting the first rung is a false economy

Something is shifting at the very start of careers, and young people have noticed it before most employers have.

The traditional entry-level route is narrowing. UK graduate vacancies have fallen sharply, down by roughly a third year on year and close to a record low in early 2026, reported by People Management.

The Institute of Student Employers has reported a particularly steep drop in graduate tech roles. AI is part of the story, taking on many of the routine tasks that used to make up a first job.

Faced with that, the next generation is not standing still. In LHH's report, The Next Generation of Talent of more than 1,000 young people, 52% said they would consider becoming an entrepreneur rather than working for a company, and 51% already have a side hustle. 78% research their options online before they ever speak to an employer. This is a generation quietly building its own ladder.

Our position is clear: removing entry-level roles to save cost is a false economy. It takes away the rung that produces tomorrow's managers and leaders, and it hands your most enterprising young talent every reason to build elsewhere. But rebuilding that rung is about more than posting roles. It is about winning these candidates, and then keeping them. Three things make the difference.

Attract on their terms, and mean it. This generation does its homework, and two-thirds believe employers exaggerate their commitment to purpose. Reaching early talent now means showing up authentically, in the places they actually look, with a story that holds up to scrutiny.

Keep them engaged through the process, not just to the offer. Young candidates move on quickly when they sense a gap, whether that is slow communication or a process that feels impersonal. The talent you worked hard to attract can slip away before they ever start.

Develop them from day one, so they stay. Attraction is wasted if people leave within two years. The skills gap worries young people most (41% identify a gap in their knowledge of emerging technologies like AI), and they want managers who can genuinely support them. Closing that gap early, and equipping managers to grow their teams, is what turns a promising hire into a future leader.

This is where LHH comes in. We help organisations build an employer brand and attraction approach that connects with early careers talent and rings true, then keep those candidates engaged and confident from first contact through to onboarding. From there, our early careers development programmes equip managers to support and grow their teams, and give graduates the coaching, tools and structured two-year journey to own their careers and build their future with you. 

If you are rethinking what early careers looks like in an AI-shaped market, contact us to find out how we can help.