Securing an apprenticeship in the UK has become more competitive than gaining entry to Oxford or Cambridge, according to Skills Minister Baroness Smith of Malvern, as pressure mounts on the government over rising youth unemployment and a growing skills gap.
Baroness Smith, who now oversees skills policy at the Department for Education, said young people across the country are “queuing up” for apprenticeship opportunities, with employers able to be highly selective. Her comments come at a time when official figures show close to one million people aged 16 to 24 are not in education, employment or training.
The comparison highlights the scale of competition. Oxford and Cambridge universities admit only a fraction of applicants each year, with acceptance rates of around 14% and 16% respectively for 2025 admissions. By contrast, many high-demand apprenticeship programmes, particularly in engineering and digital sectors, receive well over 100 applications for each available position, making entry highly competitive.
Government data shows there were 353,500 apprenticeship starts in England during the 2024–25 academic year, with more than 761,000 people currently participating in schemes. Higher-level apprenticeships have grown by more than 15% year-on-year, with business, law and administration remaining the most popular fields.
To address demand, Baroness Smith announced £600 million in funding aimed at creating 60,000 additional apprenticeship places. The initiative focuses on sectors experiencing acute labour shortages, including construction, engineering and digital industries.
She said young people are increasingly interested in vocational routes, particularly in trades and technical roles. However, she acknowledged that access remains uneven, with demand significantly outstripping supply in many regions.
Despite government ambitions, concerns persist among employers, particularly small and medium-sized enterprises, which traditionally provide a large share of apprenticeship opportunities. Industry figures suggest only around one in five construction SMEs plans to recruit an apprentice this year.
Rising employment costs have added to the challenge. Changes to employer National Insurance contributions, combined with increases to minimum wage levels across age groups, have pushed up the cost of hiring younger workers. The apprentice minimum wage rose to £8 per hour in April, while wages for older young workers also increased, placing further pressure on recruitment budgets.
Business groups argue that these cost pressures are discouraging firms from expanding apprenticeship schemes. Some have warned that higher staffing costs are forcing employers to reconsider whether they can afford to take on trainees at all.
At the same time, youth unemployment remains elevated, with nearly 957,000 young people classed as not in education, employment or training in the latest official figures.
The government says its investment programme is designed to ease bottlenecks and encourage greater participation in training schemes. However, with demand continuing to outstrip supply, apprenticeships remain out of reach for many school-leavers navigating an increasingly competitive labour market.
