The Office for National Statistics (ONS) has released its latest labour market overview, revealing that UK job vacancies have fallen to a five-year low. On its own, this would already be a significant headline. However, its implications become far more serious when viewed alongside another major report – the Young People and Work review by former government minister Alan Milburn – which found that almost one million 16–24 year olds are not in employment, education or training.
Taken together, these reports paint a concerning picture of the UK labour market, particularly for young people. At the very moment when they need clearer pathways into work, employers are becoming more cautious and entry-level opportunities are shrinking. Long before this situation reached national attention, however, the packaging industry had already been experiencing its effects. With an ageing workforce and a fragile skills pipeline, the sector is especially exposed – but also uniquely positioned to help address the issue.
The problem beneath the headline figures
While the ONS data is serious for print and packaging, it sits within a broader economic picture that is more mixed. Employment remains stable at around 75% (February–April), and unemployment and inactivity rates have remained largely unchanged. It is the sharp fall in vacancies that has drawn attention, but the sector-specific implications risk being overlooked.
This would be a mistake. A stable employment rate can mask the fact that fewer employers are actively hiring. When confidence weakens, it is typically first jobs, apprenticeships, trainee positions, and junior roles that are cut or delayed. The ONS reports that vacancies fell across 10 of 18 industry sectors, with businesses citing economic uncertainty and rising labour costs as key factors.
Manufacturing has been particularly affected. Workforce jobs in the sector fell by 81,000 year-on-year, a 3.2% decline, driven largely by a reduction in payroll employment. Smaller businesses have been hit hardest: firms with 1–9 employees accounted for 16,000 of the quarterly fall in vacancies, while those with 10–49 employees saw the steepest annual decline. This is especially relevant for print and packaging, where SMEs make up a significant share of converters, printers, finishing houses and reprographics businesses.
Pay pressures are also squeezing the sector. While average earnings growth sits at 3.4%, real-terms growth is close to flat at just 0.1% once inflation is considered. Total pay growth of 4.4% still leaves many workers under cost-of-living pressure, while businesses struggle to pass on price increases in a highly competitive market.
As a result, many print and packaging companies are adopting more defensive hiring strategies. Recruitment freezes, delayed replacement of retiring staff, and reduced intake of junior roles are becoming more common. While understandable in the short term, this approach risks long-term capability gaps in a sector that depends heavily on technical expertise, machine knowledge, and hands-on production skills.
Opening doors while others close them
The challenge is clear: fewer entry points today will mean greater skills shortages tomorrow. The industry still requires young talent across production, engineering, prepress, colour management, automation, digital print, sustainability, data and packaging development. Yet if recruitment slows further, the pipeline of future expertise will narrow just as demand for it increases.
There is also a perception challenge. Many young people do not naturally associate print and packaging with advanced technology or future-facing careers. In reality, the sector sits at the intersection of automation, AI, robotics, materials science, circular economy thinking, compliance, brand experience and data-driven manufacturing. The industry needs to better communicate this reality and move beyond outdated perceptions.
That means scaling up apprenticeships, strengthening partnerships with schools and colleges, expanding paid work experience, and creating clearer progression routes into technical and leadership roles. BPIF Training reported more than 550 active print apprentices in 2025, demonstrating that pathways exist – but they are not yet at the scale required.
Support is also available. Government funding exists for employers hiring apprentices aged 16–18, foundation apprentices aged 16–21, and 18–24 year olds who have been on Universal Credit for more than six months. SMEs can also benefit from additional apprenticeship support, alongside National Insurance exemptions for younger employees and apprentices.
At Young People in Print & Packaging, we see first-hand that young people are ready and willing to work. Far from being disengaged, they are ambitious and eager to enter industries that offer meaningful, future-facing careers. The challenge lies not in demand for opportunity, but in the availability of entry points.
The wrong response to these reports is to pause and wait. The right response is leadership: identifying skills gaps, planning for retirements, investing in structured training, strengthening education links, and improving the way the industry presents itself to future talent.
In any crisis, organisations are told to secure their own position before helping others. In this case, addressing the youth employment challenge does both. For print and packaging, opening doors to the next generation is not just a social responsibility – it is a strategic necessity for the industry’s own future resilience.
Young People in Print & Packaging (YPIPP) is a non-profit initiative focused on building pathways for the next generation of talent to start their careers in the industry. To learn more, visit www.ypip.co.uk.