Young job hunters are being rejected by AI bots as more than a third of firms slash entry level jobs

Young people struggling to find work are being rejected by AI bots as a ‘national crisis’ builds.

In a blow to the confidence of job-seekers, many are being screened out even before their applications are seen by a human.

The findings from the Work Foundation, a think-tank based at Lancaster University, represent new evidence of the tough employment outlook for young adults.

It also revealed 36 per cent of firms have reduced in the past 12 months the number of entry-level jobs open to 16 to 24-year-olds.

And 73 per cent believe the rise in worklessness among young people is a ‘national crisis’.

AI appears to be in-part responsible with 43 per cent saying they have invested in technology that has reduced entry-level roles. AI is also being used to screen job applicants by 44 per cent of firms, rising to 60 per cent for larger companies with 250 or more staff.

Divya Jyoti, of Lancaster University Management School, said it highlighted ‘a worrying pressure’ on those looking for work.

She added: ‘Young people described applying repeatedly for jobs and hearing little or nothing back. Some were left wondering whether their application had been seen by a person at all. That can damage confidence and make an unforgiving jobs market feel impossible to navigate.’

The report comes ahead of official figures tomorrow on the number of 16-24 year-olds who are classed as not in employment, education or training (NEETs). Previous data showed the number of NEETs climbed above a million at the start of this year.

Many firms blame the surge in costs under Labour for reducing their ability to take on young staff. They include sharp increases in employer national insurance as well as the minimum wage.

The rise of AI threatens to add to the misery with many tasks traditionally carried out by junior employees in careers such as accounting or the law now able to be carried out by bots.