'Glass floor' leaves young workers shut out of jobs

Fresh labour market figures showed unemployment holding at 5.2% while wage growth fell to a five-year low, reinforcing signs of a jobs market that remains broadly stable but is becoming more cautious in key areas of hiring.

Recruitment technology company Oleeo said the data masked a widening gap between headline resilience and the experience of younger people trying to enter the workforce. It pointed to falling employment among under-34s as employers pull back on entry-level recruitment.

Oleeo described the pattern as a "glass floor" in the labour market: an emerging barrier at the start of careers that leaves early-career candidates able to see roles above them but unable to access the first step that builds experience.

Entry point

Public debate has often focused on overall employment, redundancies, and wage growth. Oleeo argued the sharper change is at the gateway into work: openings may not be collapsing, but routes into many sectors are narrowing.

Entry-level roles in media, marketing, finance and technology increasingly list requirements once associated with more experienced positions. Employers commonly ask for prior work experience, internships, technical skills, or professional networks. As a result, graduates and school leavers can find themselves competing for "junior" roles that assume access to earlier placements.

Charles Hipps, Oleeo's founder and CEO, linked the shift to employer caution as economic conditions soften and organisations look for quicker returns from hiring decisions.

"What we're seeing in today's data is a labour market that looks stable overall, but is becoming harder to enter. When employers become more cautious, it's almost always early-career hiring that slows first," Hipps said.

He said the issue echoes long-running concerns about progression barriers later in working life, but is now appearing much earlier in the employment journey.

"For decades, we've talked about the glass ceiling, the barriers that prevent people from reaching the top of organisations. But we're increasingly seeing what could be described as a glass floor. Many young workers can see opportunities above them, but they can't get their foot in the door because entry-level roles now expect experience that those roles historically provided," Hipps said.

Hiring signals

The figures come as the government rolls out financial incentives aimed at improving youth employment, including a £3,000 grant for businesses that hire young workers. The measures are intended to reduce costs and encourage recruitment at the lower end of the experience ladder.

Hipps said incentives can influence decisions at the margin, but do not address the redefinition of what counts as entry level in many organisations.

"Financial support can help reduce the perceived risk of hiring early-career candidates," he said. "But if employers continue to expect prior experience for entry-level roles, the barrier doesn't disappear; it just becomes harder to see."

Competition for graduate roles remains intense, with large schemes often attracting huge numbers of applicants for limited places. In that environment, employers can tighten selection criteria and still fill roles quickly, even as some candidates struggle to secure interviews.

Oleeo also pointed to structural shifts in entry-level work. Automation and digital transformation have reduced some administrative and coordination jobs that traditionally served as first roles in sectors such as finance and professional services. Many tasks have been digitised, consolidated, or absorbed into other positions, leaving fewer jobs that provide paid, on-the-job learning for people without a track record.

At the same time, organisations that slow overall hiring can still have urgent needs in areas such as data, cybersecurity, and digital product work. That can push demand towards candidates with demonstrable skills, credentials, and experience, even when vacancies are labelled "junior".

Economic impact

Oleeo said the "glass floor" has implications beyond individual job seekers. Constrained entry routes can weaken talent pipelines in industries that rely on structured intakes, and can undermine social mobility if access depends more on informal networks and unpaid experience.

"The first job someone secures often shapes the trajectory of their entire career," Hipps said. "If those entry points become harder to access, the impact isn't limited to individuals. It affects social mobility, talent pipelines and productivity across the economy."

Employers face their own constraints, including tighter budgets, rising costs, and uncertainty in demand. Many have also raised expectations of immediate contribution from new hires, increasing the bar for applicants at the very start of their careers.

Hipps said the data pointed to growing pressure on younger workers and urged employers to keep entry routes open as caution spreads through recruitment decisions.

"As labour market data shows pressure building among younger workers, organisations need to ensure that early-career routes into industries remain open," he said.