URGENT UPDATE: A City executive warns that the job market for graduates is collapsing, with AI-driven hiring leaving many young people in despair. Quentin Nason, vice chair of the London Foundation for Banking and Finance, describes the hiring process as a “meat grinder,” crushing the hopes of a generation already burdened with student debt.
In a shocking LinkedIn post that has resonated deeply within the City of London, Nason reveals that many graduates are applying for over 150 roles without success, a dire situation that he claims is “broken for both sides.” The reliance on AI to filter candidates has led to overwhelming rejection rates, making entry-level positions a high-stakes game of chance.
As AI tools handle tens of thousands of applications, qualified candidates find themselves trapped in a cycle of automated rejection. “It takes a click to apply to everything with zero friction costs,” Nason explains, highlighting the absurdity of seeing 5,000 candidates vying for just five jobs. This automation creates a vicious cycle that benefits companies but leaves graduates locked in digital limbo.
The emotional toll on Gen Z is profound. Nason argues that this generation, raised to believe in the value of education, is now faced with the harsh reality of mounting debt—often reaching £50,000 ($67,000)—and no job prospects. “They did what society told them to do, and now find themselves locked out,” he laments.
Drawing a stark parallel with recent unrest in Nepal, where youth frustration over joblessness sparked violent protests, Nason warns that similar sentiments could erupt in the UK. “It may seem distant, but it could be a preview of what comes next,” he cautions, suggesting that the UK might be on the brink of its own unrest fueled by disillusionment and exhaustion.
As the job market continues to shift, major employers are reacting. PwC UK plans to cut its graduate intake from 1,500 to 1,300 hires due to sluggish growth and the impact of AI on job roles. Similarly, Deloitte UK has reduced its graduate hiring numbers, reflecting a worrying trend in the labor market.
While some leaders in tech, like OpenAI CEO Sam Altman, argue that Gen Z’s fluency with AI positions them for future success, others, including Federal Reserve Chair Jerome Powell, express concern over the immediate impacts on new graduates. Powell acknowledges that AI technology is already reshaping the job landscape, although he notes that the extent of this impact is still uncertain.
As Nason articulates, “Something has to give, and soon.” With rising tensions and increasing frustration among young graduates, the implications of this crisis are immediate and far-reaching. If the current trajectory continues, the promise of education as a pathway to prosperity may become a relic of the past.
As the situation develops, all eyes will be on the City of London and how it responds to this alarming trend. Graduates and job seekers are left anxiously wondering what the future holds in an environment increasingly defined by AI and automation.
