Current Job Market is “Toughest in Several Generations” as Young People Face “Entry Level Blockers”, says Gi Group MD

The Conservative Party has pledged a £5K tax rebate for young people in their first job, The First Job Bonus, in a bid to help them buy their first home – if they win the next election. As young people, particularly graduates, face a thinning entry-level job market , leading recruiter Gi Group UK’s Managing Director Pete Taylor says this incentive could help the labour market’s stagnation but only in tandem with joined up thinking from employers. 

Pete believes that any initiative to support young people entering the workforce is worthy and should be embraced. “This isn’t just about financial support; it’s about providing young people with an opportunity to succeed. This could be a boon for those people in both an employment sense and also when it comes to getting on the property ladder. As we know, house prices are skyrocketing so this generation needs every bit of help it can get.

“On the flip side, graduates are being faced with a ‘bare-bones’ recruitment landscape, and entry-level role blockers at every turn, which has created an uphill challenge for those looking to join the workforce. I am, however, a believer that it’s the individuals who are willing to start at the bottom and work their way up who will achieve the greatest career success and this pledge could give more people a push in the right direction to adopt that mindset of resilient perseverance.”

The Conservative’s pledge would give young people a £5K tax rebate in their first job, a measure intended to be used towards their first house deposit. Shadow Chancellor Mel Stride has shared details of the party’s plans to reduce government spending by £47 billion, if the party wins the next election.

Pete continued: “Entry level roles are rapidly being taken over by AI technology, we’re consistently seeing a reduction in graduate positions which is limiting entry routes into the labour market.

“It has never been more challenging for young people to find work – in fact this is the hardest period in several generations for young people entering the labour market – so if this initiative forces candidates to get creative while on the job hunt then it’s a positive. Young people are facing a generational war, battling against AI advancements and cost-of-living pressures, while businesses face rising employment costs.

“It has never been more important for people to be exploring all their options. Roles are out there, but they may not be at the bigger firms. It is vital that candidates wishing to succeed and climb the ladder are looking at all possible entry routes, and looking for opportunity at smaller firms can be a perfect way of gaining experience and getting your foot in the door.”

Latest data from the Institute of Student Employers shows that the graduate recruitment market only grew by 4 per cent in 2024 and is forecast to grow by 1 per cent in 2025, the lowest growth forecast since 2021.

“Think outside the box.” Pete added. “The recruitment process can be challenging and often disheartening but there are tools, and people, particularly working with skilled recruitment experts, to help candidates secure the right role for them with longevity and progression as a given. For this pledge to be successful, it would need buy in from businesses, recruiters and candidates alike. It needs to be part of a nation-wide effort to support young people into the workplace.”

Gi Group emphasises the importance of having professional, expert support throughout the recruitment process. Recognising the challenging times for those entering the workforce, the Gi Group team makes it its mission to match highly-skilled candidates with the perfect employers. This latest pledge is just another step in supporting graduates into the workplace, ensuring candidates receive the right opportunities.