What goes around, comes around. Employers are finding it increasingly difficult to find mid-level skilled talent.
Researchers’ research links shrinking opportunities for entry-level talent with growing talent shortages
58% of UK leaders in business report that it is more difficult for them to find mid-level skilled talent today than three years ago. A quarter of UK business leaders report that they have to pay more for mid-level talent than three years ago.
Robert Walters, a global provider of talent solutions, has conducted research that indicates a decline in recruitment at the entry level and for graduates. This is leading to challenges with hiring. The number of professionals entering the workforce in the early stages of their careers is decreasing. This has led to an increase in competition and costs among organisations for mid-level talents.
Chris Eldridge comments: Our findings highlight the risks employers are exposed to when they reduce entry-level or graduate intakes. This is not just a matter of saving money in the short term. Large-scale cuts can lead to future cost increases and threaten the health of talent pools. The trend is not new. A look back at 2022 shows us the potential issues that can arise.”
The mid-level wage inflation boom of 2022
A High Fliers Research survey revealed that the number of graduate and entry level positions in 2020 was down by 15% from 2019. This is the sharpest drop in graduate recruitment since 2008-2009.
Robert Walters Market Intelligence data shows that the wages of intermediate positions reached their peak in 2022. They increased by +5% per year, marking a six-year high.
Chris comments “The steep rise in salaries at mid-level we saw in the year 2022 was a result of a storm.” During the pandemic major UK companies faced tight budgets and high inflation. They also had unused office spaces. Many firms cut back dramatically on hiring graduates and entry-level employees, creating an unintentional talent bottleneck. Two years later, the hiring boomed when business confidence returned. “Employers suddenly found themselves in a competition for a small pool of experienced professionals.”
From 2022 to 2024 the wages of these mid-level jobs increased by +8% in comparison to the period prior to pandemic, 2017 to 2019.
The most notable increases in this period were for positions in engineering, accounting, and technology. As demand grew, salaries for positions such as In-House lawyers (5-10 years PQE), Cyber Security Managers and Finance Managers increased by more than 10%.
The past is repeating itself
It might be. But, in a completely different set of circumstances.
Adzuna’s 2025 figures show that the number of entry-level positions has dropped by almost a quarter since 2022, when ChatGPT was launched. Indeed, an online jobs platform, found a similar pattern, reporting that the number of roles advertised this year for recent graduates represents a seven-year low.
Chris continues “AI tools and automation are rewriting traditional job roles. Innovation is a sign of progress, but it shouldn’t be at the expense of a group. Graduate and entry level positions are being quickly deemed as ‘administrative placements’ rather than crucial for feeding future talent needs.”
Jessica Holt is the Managing Director of Robert Walters Outsourcing in EMEA. She adds: We are already witnessing the damage that this attitude causes. As fewer people are moving up the career ladders, organisations find themselves in a competition for a smaller pool experienced hires. This often comes at a high cost, and there is less flexibility to shape their talent internally.
Careers of the future on the cutting block
Pressures are increasing for entry-level professionals. Over two-fifths of professionals (42%) feel that AI has significantly affected their job opportunities.
Jessica continues “Roles which once provided early-career professionals with an entry into the professional world have been streamlined or eliminated altogether, leaving people at the beginning of their career facing a difficult challenge. The expectation is that they will bring advanced skills, but there are fewer opportunities for them to acquire those skills in the workplace.
Businesses are also missing a crucial stage in the way they build their teams. The UK could fall behind in sectors like advanced technology and green energy, which already face critical skill shortages, without entry-level positions to develop subsequent pools of skilled talent.
Chris concludes: “The data speak to the challenges that could arise in future hiring plans if entry level roles were cut too deeply. It’s not just about the future cost, but also about the future health and stability of our labor market. This is something that requires planning and careful foresight, rather than looking at emerging technologies as a solution.
Employers can avoid mistakes of the past by adopting a holistic strategy that prioritizes long-term workforce training, targeted upskilling, and AI along with human insights.
What goes around, comes around. The post 58% of employers find it difficult to hire mid-level skilled talent now first appeared on HR News.
