The government’s plan to upskill 10 million workers with AI training by 2030 is a welcome and ambitious step. We know that the influence of AI is everywhere, but the digital skills gap is one of the biggest barriers to business growth.

An ancillary question is what impact new technologies will have on young job seekers in an increasingly AI-driven world of work.

Business challenges are growing, and this is having an undeniable effect on employment prospects for young people. Vacancies for entry-level roles have dropped to a five-year low as companies turn to automation to fill junior positions amid rising costs, putting pressure on employers’ ability to invest in the skills they need.

New data from The Careers & Enterprise Company (CEC), the national body for careers education, drawn from more than 750 employers nationwide, captures this tension. Some 71 per cent say rising costs limit their ability to invest in education outreach — up sharply from 50 per cent last year. And 65 per cent of businesses say staff shortages reduce the time they can devote to recruit and retain talent.

At first glance, this looks like a vicious circle: employers are squeezed for time and resources, yet need to invest more, not less, in future talent. But the businesses that do engage early are showing that smarter, better-designed outreach is not a burden. It is a strategic response to skills shortages.

One of the most powerful ways to develop and nurture these skills is through work experience. Eighty-three per cent of business leaders reported that high-quality work experience is an effective way to attract entry-level employees. Those that maintain a consistent schools’ outreach strategy are 56 per cent more likely to report bringing apprentices into the business.

In other words, early engagement works, but it must be modern, purposeful, and aligned with business needs.

The government’s commitment to a work experience guarantee for all young people, which we at the CEC are helping them to deliver, heralds opportunity for work placements to be reframed around modern work practices, comprising shorter, dynamic and immersive placements and activities — virtual and hybrid opportunities — and targeted experiences in high-growth sectors.

These approaches allow businesses, including start-ups and scale-ups, to contribute without overwhelming already stretched teams, while giving young people meaningful insight into work, skills and pathways.

Modern work experience should not perpetuate the two-week block of time spent in a workplace environment, which many of us might still remember as being rather hit or miss in terms of informing us about future routes to employment.

Work experience also offers young people the opportunity to understand the vital interplay between emerging digital skillsets alongside “soft” skills that foster leadership, resilience and teamworking.

Nowhere is this more urgent than in the digital and technology sector. Alongside digital capability, evidence shows continued demand for essential skills in communication, problem-solving and critical thinking, which employers consistently say are in short supply.

Employers like US software group Salesforce are already investing in removing barriers for young people facing socioeconomic challenges to help them discover pathways into tech careers and improve their digital skills.

There is also a powerful equity case. Almost one million young people are not in education, employment or training. Too many, particularly those from disadvantaged backgrounds, lack access to networks, role models and high-quality work experiences. The problem is exacerbated for those with special educational needs and disabilities (SEND): one in five students in England are receiving support for SEND in the classroom. A modern model of outreach can widen opportunity, strengthen social mobility, and help businesses tap into talent they would otherwise miss.

Despite business pressures, pulling back from early outreach may be a false economy. Organisations can treat engagement with young people not as corporate charity, but as workforce planning. Adulthood is too late to build digital confidence, career awareness and employability.

Workforce readiness for an AI future needs to start earlier, helping young people see opportunities and build skills. We have seen this on the ground: employers who co-design experiences with schools and colleges report higher-quality candidates, improved retention, and a clearer sense of their future talent pipeline.

Baroness Morgan is a former secretary of state for education and chair of The Careers & Enterprise Company. CEC is part of the TechFirst initiative, which aims to close barriers to opportunities in tech and upskill the next generation.

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