Young Britons face an increasingly bleak jobs market after the number of graduate roles advertised plunged to its lowest level on record.
In July, just 8,383 positions for university leavers were advertised - a 45 per cent collapse compared with the same month last year.
Data compiled by recruitment platform Adzuna shows the figure is the lowest since records began in 2016.
The figures come as a record 262,820 18-year-olds secured university places following this month's A-level results.
Employers have been cutting back on entry-level recruitment amid higher employment costs, including Labour's increases to National Insurance contributions and the minimum wage.
The changes have made it more expensive for firms to hire inexperienced workers who require training and supervision before becoming fully productive.
Artificial intelligence (AI) is also transforming the graduate jobs market, with technology increasingly capable of carrying out administrative tasks traditionally given to junior employees.
Major employers, including the Big Four accountancy firms, are increasingly deploying AI software to handle paperwork previously assigned to new recruits.
The combination of higher employment costs and technological change has created a particularly difficult environment for young people seeking to enter the workforce.
Youth unemployment among 16 to 24-year-olds now exceeds 16 per cent, while more than one million young Britons are classified as Neets - not in employment, education or training.
A review conducted by Alan Milburn, the former Blair-era Health Secretary, found that one in seven of those classified as Neets holds a university degree.
The typical graduate salary advertised last month stood at £25,813, roughly equivalent to what a full-time worker earns on the £12.71 minimum wage.
BRITAIN'S YOUTH CRISIS - READ THE LATEST:
- Andy Burnham criticises Zoom interviews and AI recruitment as youth unemployment concerns grow
- Young people on benefits now less likely to find work than over-55s as jobs crisis deepens
- Britain's unemployment crisis set to see FOUR Year 6 students per class live a life on benefits
Graduate vacancies have plunged by 85 per cent since their peak of more than 55,000 in 2017.
Bank of England chief economist Huw Pill told MPs that increases to National Insurance and the minimum wage had a "particular effect on young people".
Shadow Business Secretary Andrew Griffith said: "This is precisely what Labour was warned about when introducing hundreds of pages more employment red tape and hiking National Insurance.
"The first thing firms cut back on is hiring and this year's graduates are paying the price."
The graduate jobs crisis comes amid a wider deterioration in the labour market.
Total vacancies across all sectors fell to 791,490 in July, marking the first decline in five months.
Competition for jobs has also intensified, with the ratio of jobseekers per vacancy rising to 2.14 from 1.93 a year earlier.
The mounting pressure on the jobs market comes as Chancellor John Healey prepares for his first Budget in October.
A Government spokesman said: “We are determined to go further to restore opportunity for young people through our £2.5billion youth employment package which will deliver almost one million opportunities to earn or learn.
“And further reform will follow the Milburn Review to support young people across the country.”
Our Standards: The GB News Editorial Charter
