UK Graduate Job Vacancies Drop Nearly 50% in a Year, Report Finds

The number of graduate job vacancies in the United Kingdom has fallen by nearly half over the past year, according to new data from the job search website Adzuna. The decline has been attributed by businesses to higher employment costs and the increasing use of artificial intelligence in recruitment.

Figures shared with the BBC show that Adzuna listed 8,383 graduate positions in July, down from 15,397 in the same month last year. This is the lowest number of graduate vacancies recorded on the site since 2016. The firm noted that graduate roles peaked in 2017, when more than 55,800 were listed — more than six times the current figure.

The data also reveals that competition for jobs is intensifying across all levels. The average number of job seekers per vacancy rose to 2.14 in July, compared with 1.93 a year earlier.

Businesses have told the BBC that increases in employer national insurance contributions and the minimum wage have made hiring more expensive, particularly for junior staff. Additionally, many companies are now using AI tools to screen applications, a practice that some young job seekers say adds to their frustration.

Andrew Hunter, co-founder of Adzuna, said the figures indicate that “employers still have not found a reason to open up hiring” for recent graduates. However, graduate jobs expert Charlie Ball offered a more nuanced view: he suggested that firms may be advertising fewer roles specifically as graduate positions, even if the jobs themselves still exist and are eventually filled by graduates.

Ball said the graduate market has “not collapsed” but “is weak.” “We know it’s not in great shape,” he added.

The latest official figures show that unemployment among people aged 16 to 24 stood at 16.2 per cent in the first quarter of this year. More than one million young people in the UK are now not in education, employment or training, according to the report.

Former government minister Alan Milburn is leading a major review of the youth unemployment crisis. He has previously highlighted that the number of entry-level jobs is shrinking, as is the number of part-time roles traditionally held by teenagers and students.

The Adzuna data also shows variation across sectors. Vacancies in travel, teaching and construction rose in recent weeks, while sectors such as healthcare, nursing, hospitality and logistics posted fewer openings.

In response, the UK government has changed the rules for public contracts, requiring companies bidding for them to demonstrate how they will create jobs and training opportunities. A government spokesperson said: “The latest figures show there are 253,000 more people in work than this time last year with unemployment continuing to fall.”

“We are determined to go further to restore opportunity for young people through our £2.5 billion youth employment package, which will deliver almost one million opportunities to earn or learn,” the official added.

The findings highlight a challenging environment for new graduates, who face both a shrinking number of dedicated entry-level roles and greater competition for the positions that do exist. The rise of AI in recruitment adds another layer of complexity, as candidates must navigate automated systems that may not fully capture their qualifications.

The decline in graduate vacancies underscores the challenges facing young people entering the workforce, as employers adjust to higher costs and new technologies. While the overall employment picture has improved, the experience of new graduates remains a concern for policymakers and experts alike.