The number of graduate job vacancies in the UK has fallen by 45.6% over the past year. It reached a record low of 8,383 in July, according to recruitment firm Adzuna. This decline is a drop from 15,397 vacancies reported in July 2022. It marks the lowest level since Adzuna began tracking this data in 2016. The peak for graduate roles occurred in mid-2017, when more than 55,800 positions were available.
Key Details
Employers are increasingly using artificial intelligence for entry-level roles. They are facing rising employment costs, including higher employer national insurance contributions. Andrew Hunter, co-founder of Adzuna, said, "The graduate job market also keeps setting new lows, which tells us employers still haven’t found a reason to open up hiring at that level." The impact of these cost increases is clear. Firms in sectors like tech and consultancy are reducing their graduate intakes. For example, KPMG cut its 2023 graduate recruitment from 1,399 to 942 positions.
Background
The overall job market in the UK is also facing challenges. Total vacancies have declined by 9.6% to 791,490 in the year to July. Competition for jobs is increasing, with an average of 2.14 job seekers per vacancy. This is up from 1.93 a year earlier. Salary growth has slowed, with the average advertised salary falling by 0.73% since May to £43,675 in July. Jobs are also taking longer to fill, averaging 36.5 days compared to 35.4 days in the previous year.
Related coverage: UK Unemployment Steady at 4.9% as Job Vacancies Decline.
The decline in graduate job vacancies may lead to more competition in the job market. This trend could particularly affect sectors that rely on entry-level positions. It may also suppress wage growth and slow hiring in the UK economy. Watch for upcoming reports on youth unemployment and government responses to job market challenges.
Based on reporting by: bbc.co.uk, cityam.com