AI and Shrinking Graduate Schemes Drive Calls for Entrepreneurship Among Young Professionals

A veteran City of London finance professional is urging graduates to consider entrepreneurship as a viable alternative to increasingly scarce traditional entry-level jobs, as artificial intelligence reshapes the job market.

Quentin Nason, a 35-year finance veteran with experience at Deutsche Bank and currently vice chair of the London Foundation for Banking and Finance, has observed a growing challenge for young people seeking careers in finance. Through his charity, City Pay It Forward, he sees firsthand how difficult it has become for graduates to secure positions. “They did what society told them to do, worked hard, went to university, took on £50,000 ($67,000) of debt, and now find themselves locked out,” Nason said. He estimates the probability of a graduate landing a job in the City is now “less than 1%.”

The shift is driven by a combination of factors, including AI-driven mass application processes and reduced graduate intake programs at major firms. PwC, for example, confirmed in August it will cut graduate hiring by about a third in the US and by 200 roles in the UK, citing “the rapid pace of technological change.” A recent Stanford University study found a 13% decline in employment for early-career workers in AI-exposed jobs, like software engineering, and a nearly 20% drop for young developers since 2022. This trend is particularly concerning as it could exacerbate existing economic inequalities.

Nason advocates for a shift in focus towards startup thinking and financial literacy, emphasizing that the skills needed for entrepreneurship – math, reading, communication, and drive – are valuable regardless of the economic climate. He referenced Warren Buffett’s observation that the age at which individuals start businesses is a strong predictor of future success. He encourages young people to look beyond traditional finance hubs and explore emerging fields like automation, robotics, and blockchain. For more information on navigating the changing job market, resources are available at the UK government’s careers advice website.

Nason believes half the industries that will exist in the future don’t yet exist, and that adapting to this reality is crucial for the next generation of professionals.