Little is certain in the current employment landscape, but at least one thing is clear: young people entering the STEM and tech workforce are contending with an entry-level labour market in flux, facing strong competition for scarce opportunities. This uncertainty is likely to disproportionately impact those from less advantaged backgrounds, who have less access to the financial resources and career guidance that could support them to secure roles. In this context, it is more crucial than ever that the right employability support is targeted to high-potential young people from underrepresented groups, to ensure that promising tech talent is not lost to the sector.

Through discussions with the Foundation’s expert Tech Advisory Board, Trustees, and the findings from the tech labour market research commissioned with NFER last autumn, the following key themes have emerged:

(1)   AI and data literacy will be the baseline, not the differentiator

AI fluency is fast becoming a baseline expectation in the workplace, regardless of job title. The challenge is not just teaching young people how to use AI tools as ‘consumers’, but enabling them to judge outputs, question assumptions, and understand underlying data. To succeed, they will need to become ‘AI creators’ who understand the building blocks of this technology and can put it to use to address real tasks. AI and data literacy needs to be embedded across education and employment provision (and we have provided some recommendations on how STEM non-profits can do this in our AI curriculum guide).

(2)   Human skills will provide a core foundation and need to be evidenced well

The ability to engage critically and fluently with AI is dependent on broader ‘human’ or ‘essential’ skills. Skills such as creativity, resilience, problem-solving, communication, and adaptability are those least likely to be automated and will provide the best chances of long-term progression. Employers are increasingly prizing these capabilities as much as technical knowledge or academic qualifications. ‘Human’ skills will also stand employees in better stead as job requirements continue to change rapidly and they need to upskill and reskill throughout their careers. The development of these skills must be a core component of education and employment programmes, and should be based on evidence-informed frameworks (such as the Skills Builder Framework).

(3)   Young people need better ‘bridging opportunities’ to gain work experience and employment skills

Amidst a landscape of fewer entry-level roles, there is a growing mismatch between what employers expect (evidence of experience) and what early-career candidates can demonstrate. There is a need for more intentional opportunities for individuals to gain experiences that help them demonstrate capability, producing tangible outputs which build their portfolios and professional profiles. These could include:

• 6–12-month bridging placements or apprenticeships

• Applied, portfolio-building projects involving real data, AI tools (including vibe coding), and interdisciplinary teamwork

• Opportunities to practise “human in the loop” skills – evaluating and improving AI-generated outputs

• Training that enhances recognisability in the labour market, such as contributions to open-source projects or certifications in responsible AI

(4)   An entrepreneurial mindset is increasingly important in a world where product ownership is democratising

AI significantly widens the ability to build products and businesses, making entrepreneurship more accessible and a realistic route into meaningful tech work. It should not be seen as an alternative to employment but also as a required competency for success inside organisations, where autonomy and product ownership are increasing. Linked to opportunities for portfolio-building, young people should learn how to generate and scale ideas, for example through hackathons and AI-focused bootcamps.

Supporting entry-level talent to continued success in this changing landscape relies on cultivating human skills, enabling practical experience through bridging opportunities, and fostering entrepreneurial thinking.

Across the programmes supported by the Foundation, we continue to think creatively with our partners about how to embed these components – and will spotlight the innovation taking place in our portfolio in future blogs.