Graduate jobs market slumps to new low

The UK's graduate job market has hit a record low, with employment costs rising and companies relying on AI for entry-level positions. The number of graduate vacancies in Britain dropped 45.6% to 8,383 in the year to July, falling below the previous low set in May, according to recruitment firm Adzuna. This decline comes amid a long-term downward trend for the UK's graduate job market; in mid-2017, over 55,000 graduate roles were available.

Employers have criticized the impact of Labour's increased employer national insurance contributions and its plans to eliminate age-based wage bands. Large firms in industries like tech and consultancy have reduced entry-level roles, replacing them with administrative tasks for AI. KPMG, a major consultancy, cut its 2023 graduate intake from 1,399 to 942.

Adzuna co-founder Andrew Hunter noted that the graduate job market continues to set new lows, indicating employers' lack of motivation to increase hiring at that level. A Chartered Institute of Personnel and Development report revealed that the UK's jobs market has largely stopped moving. Salary growth has slowed, with the average advertised salary decreasing 0.73% since May to £43,675 in July.

Competition for jobs has intensified, with 2.14 applicants for every vacancy, up from 1.93 the previous year. Job vacancies have also decreased by 9.6% to 791,490 in the year to July. While some sectors like teaching, travel, and construction are still adding roles, manufacturing is following suit. However, overall, every sector except these is experiencing more difficulty finding jobs than three months ago.