Graduate job vacancies drop by almost 50% in a year

The number of graduate job vacancies in the UK has plummeted by almost 50% in the past year, according to new figures from job site Adzuna. The firm reported just 8,383 graduate vacancies listed in July, a stark decline from 15,397 positions at the same time last year. Adzuna's data reveals a growing competition for jobs across all levels, with an average of 2.14 job seekers competing for each vacancy, up from 1.93 a year prior.

Employers are increasingly favoring AI and grappling with rising costs, which have led to the reduction of entry-level roles. The hike in employers' national insurance and minimum wage has made hiring more expensive, particularly for junior staff. The lowest level of graduate vacancies was recorded since Adzuna began tracking such data in 2016, with a peak of over 55,800 roles in 2017.

Andrew Hunter, co-founder of Adzuna, stated that employers have yet to find a reason to increase hiring for recent graduates. Official figures reveal that the UK's youth unemployment rate, covering 16-to-24-year-olds, stands at 16.2% in the three months to March 2026. Additionally, over one million young people are not in education, employment, or training (Neet).

Young people have expressed frustration with the growing number of employers utilizing AI to screen applications, often leading to hundreds of applications received before receiving even a response. Former government minister Alan Milburn is leading a major review of the youth unemployment crisis, noting that entry-level and part-time jobs, traditionally held by teenagers and students, are also shrinking.

Sectors such as healthcare, nursing, hospitality, and logistics have seen an increase in vacancies, while travel, teaching, and construction have posted fewer openings. Prime Minister Andy Burnham recently altered the rules for public contracts, requiring companies bidding for them to demonstrate job creation and training opportunities.

A government spokesperson commented on the latest figures, highlighting a 253,000 increase in people in work compared to last year, with unemployment continuing to fall. The government is committed to providing £2.5 billion in youth employment packages to deliver nearly one million opportunities for those seeking work or learning.