As the UK grapples with a cooling economy and rising housing challenges, the Conservative Party’s newly proposed First Job Bonus — a £5,000 tax rebate for young people in their first job — is being hailed by some as a timely intervention to help the next generation onto the property ladder. Yet, experts warn that without broader structural support, it may only scratch the surface of a much deeper issue.
Pete Taylor, Managing Director of Gi Group UK, believes the measure could serve as a catalyst for movement in both the employment and housing markets, but insists it will require cohesive action from employers and policymakers alike.
“This isn’t just about financial support; it’s about creating genuine opportunity,” Taylor explains. “Today’s graduates are entering a recruitment landscape that’s barer than ever before, with entry-level blockers at every turn. A tax rebate could help many take that first vital step — both into employment and, in time, into home ownership — but it must go hand-in-hand with meaningful pathways for professional development.”
A Generation Squeezed Between AI and Affordability
Taylor describes the current job market as “the toughest in several generations,” pointing to automation and artificial intelligence as major disruptors of traditional entry-level roles.
“AI is increasingly taking over many of the roles that once provided a springboard for young workers,” he says. “The result is fewer graduate opportunities and a narrowing route into the labour market. Combine that with soaring living costs and rising property prices, and you have a generation that’s fighting a battle on two fronts.”
Data from the Institute of Student Employers supports this concern: graduate recruitment grew by only 4% in 2024 and is forecast to expand by a mere 1% in 2025 — the weakest growth since 2021.
The Link Between Work and the Housing Ladder
For those hoping to buy their first home, the First Job Bonus could act as a modest but meaningful contribution towards a deposit. With average property prices continuing to outpace wages, young people are facing unprecedented barriers to entry — both in employment and home ownership.
“House prices are skyrocketing,” Taylor notes. “For many, the first rung of the housing ladder feels entirely out of reach. Any policy that helps bridge that gap deserves serious consideration, but real change will depend on employers, recruiters, and policymakers working together to open more doors.”
“Think Outside the Box” – A Call for Broader Opportunity
Taylor encourages jobseekers to widen their scope, looking beyond major corporations to smaller, regional businesses where opportunities may be more accessible.
“Roles are out there, but not always where candidates expect them to be,” he adds. “Smaller firms can offer invaluable experience and faster progression — perfect for those eager to get a foothold in both their careers and the housing market.”
Supporting the Next Generation of Talent
Headquartered in Chesterfield, Gi Group UK employs nearly 240 people and supports more than 1,000 clients across sectors including logistics, industrial, engineering, and automotive. The company continues to champion early-career talent, connecting skilled candidates with long-term opportunities.
“The recruitment process can be daunting, but it doesn’t have to be a solo effort,” Taylor concludes. “With expert guidance and collaboration across the employment ecosystem, we can help more young people realise their career potential — and their dream of home ownership.”
