UK tech and finance jobs for young people fall 22% in three years

The number of 18 to 24-year-olds employed in UK tech and finance has fallen by 22% since 2022, according to research by Boston Consulting Group (BCG).

Payroll employment for this age group has fallen by 30% in the information and communications sector, and by 10% for the finance sector, according to Bloomberg.

Across both sectors, around 45,000 jobs have been lost, leaving a total of approximately 163,000.

The data covers the period from the end of 2022 to the end of 2025.

It comes at a time where nearly one million young people in the UK are estimated to not be in education, employment, or training.

Raoul Ruparel, senior director at BCG’s Centre for Growth, said that a “post-pandemic downturn and remote working” has made it difficult to train junior workers, threatening the “pipeline of experienced talent” that industries rely on to survive.

Although the development of AI is often linked to falling job opportunities for young workers, Ruparel said that much of the decline happened between 2023 and 2024, “before today’s more capable AI tools”.

Barclays has recently announced that it expects a cut of 5,000 jobs as it adapts to AI and automation over human employment.

Employers should be focused on upgrading employees’ skills so that they remain employed as new technology changes the workplace

Sharon Graham, general secretary of Unite

Sharon Graham, general secretary for UK trade union Unite, criticised the bank for using AI as “an excuse to discard its loyal and long-suffering workforce.”

She said Barclays should instead focus on “upgrading employees’ skills” in the tech and finance sectors.

According to BCG, since 2019, the best-performing sectors for 18 to 24-year-olds have been construction, transport and storage, and arts and recreation.

The tech and finance sectors remain among Britain’s “best-paying industries” for young people and graduates entering the job market.

To counter Generation Z unemployment and advances in AI, the UK government has announced 10,000 new work placements in the tech sector for young people.

The scheme aims to reach one million secondary school students by 2028 with a new TechFirst programme, equipping young people with AI and technology skills.

BCG’s research also points to fewer open vacancies and rising employment costs as factors making the labour market tougher for aspiring young workers in tech and finance.