AI is making entry-level jobs more competitive, and young people’s human skills more valuable

A landmark survey involving more than 527,000 young people reveals growing gaps between the skills employers need and the skills young people feel confident in.

• 81% of businesses expect demand for skills such as communication, creativity and critical thinking to rise over the next five to 10 years.
• Young people are gaining confidence in creativity and problem-solving skills, but confidence in teamwork, listening and leadership declines during secondary school.
• With youth unemployment under growing scrutiny, Alan Milburn’s review of young people and work is expected to call for stronger links between education, skills and employment.

As AI transforms the jobs market and makes entry-level roles increasingly competitive, the human skills that technology cannot easily replicate are becoming more important to employers.

Yet new research from The Careers & Enterprise Company (CEC), the national body for careers education, drawing on more than 527,000 responses from young people across nearly 2,000 schools in England, reveals a mixed picture of their skills readiness for work.

While students become more confident in some of the skills employers increasingly value, confidence in others declines as they progress through secondary school.

Between Year 7 (age 11) and Year 11 (age 16):

• Confidence in creativity rises by 17 percentage points.
• Confidence in problem solving increases by 10 percentage points.
• Confidence in staying positive increases by five percentage points.
• But confidence in teamwork falls by 12 percentage points, listening by five points and leadership by four points.

The findings highlight a growing challenge for employers and educators. While 81% of businesses expect demand for human skills to increase over the next five to ten years, 45% already struggle to recruit people with them. Communication (62%), problem-solving and critical thinking (59%) are among the skills businesses identify as critical to future success.

The challenge comes as young people face an increasingly competitive labour market, with AI and automation reshaping traditional entry-level roles. UK graduate vacancies fell by 43.1% in September compared with September 2025.

CEC’s research also shows that understanding of different routes into employment is uneven. While 84% of Year 11 students understand A Levels and 82% understand apprenticeships, this falls to 49% for T Levels and 56% for other vocational qualifications, including BTECs.

The gaps are wider for some young people facing additional barriers:

• 70% of Year 11 White British working-class (FSM) boys feel confident in problem solving, compared with 79% of non-FSM White British boys.
• 63% of students in mainstream schools with SEN feel confident in teamwork, compared with 74% of their peers without SEN.

The findings come amid growing recognition of the importance of communication and real-world experience in preparing young people for work. Last month, the Education Secretary set out ambitions to give oracy – speaking, listening and communication – equal status with reading and writing in the national curriculum.

Alan Milburn’s forthcoming recommendations on youth unemployment are also expected to call for earlier exposure to the world of work and wider access to work experience.

The Government has enlisted CEC as a partner in delivering its National Mission on Work Experience, working with employers to secure pledges to provide high-quality opportunities for young people across the country.

John Yarham, CEO of The Careers & Enterprise Company, said:

“Young people are entering a world of work changing at unprecedented pace. As technology transforms jobs, human skills are becoming more important than ever.

“Employers increasingly recognise that the future lies in combining AI with human capability. Skills such as judgement, communication, collaboration and complex decision making will remain essential.

“We must act now to help young people develop these skills, giving them the confidence and capabilities to navigate a changing jobs market and carve out a clear line of sight into a positive future.”

Jonathan Opoku-Anokye, Chair of CEC’s Youth Advisory Group and paralegal apprentice said:

“Every young person has ambition and potential. But having the ambition to succeed and having access to the opportunities to make it happen are two very different things. From my own experiences, I know how much meaningful opportunities, support and connections can shape a young person’s future. We must ensure that every young person, regardless of their background, has a fair chance to realise their potential.”