Graduate job openings in the UK have fallen to their lowest level in at least eight years, with 8,383 vacancies advertised in July—a 45.6% decline from the same month last year. The figure, reported by job-matching platform Adzuna, represents the lowest point since the company began tracking graduate listings in April 2016.
The drop marks a sustained multi-year decline, collapsing from a peak of 55,000 vacancies in mid-2017. The latest data also shows a broader slowdown in the job market, with total UK vacancies falling 9.6% to 791,490 in July, while competition for each role intensifies.
Graduate Salaries Edge Upward Despite Market Contraction
Average graduate salaries rose marginally to £25,815 in July, up from £25,773 in May, according to Adzuna. However, this increase contrasts with the record 262,820 18-year-olds expected to begin university this academic year, raising concerns about the gap between supply and demand.
The decline in graduate roles coincides with broader economic challenges, including higher business costs and economic sluggishness, which employers cite as factors in reduced hiring. AI adoption is also reshaping entry-level positions, with routine tasks traditionally assigned to junior employees increasingly automated.
Broader Job Market Weakness Extends Beyond Graduates
While graduate vacancies saw the steepest decline, Adzuna’s broader entry-level category also fell 8.1% year-over-year, signaling widespread hiring challenges. Competing data from Indeed shows a 7% drop in postings with “graduate” in the title as of July 10, the lowest level for that period since 2020.
A PwC analysis published in June, based on over 1 billion global job ads, found that entry-level roles exposed to AI were seven times more likely to require traditionally senior-level skills compared to 2019. This shift reflects how automation is altering the structure of early-career employment.
Economic and Policy Responses to the Hiring Slowdown
The UK government has emphasized alternative career pathways, with Prime Minister Rishi Sunak stating that technical qualifications should be valued equally to university degrees. His remarks follow calls from Chancellor John Healey and Greater Manchester Mayor Andy Burnham to address rising unemployment amid the broader economic downturn.
Employers are adopting varied strategies to navigate the downturn. Some are reducing entry-level hiring, while others are investing in upskilling existing staff to adapt to AI-driven changes in job roles. The Adzuna co-founder Andrew Hunter noted that the sustained decline suggests employers have yet to find compelling reasons to increase graduate recruitment.
Long-Term Implications for the Workforce
Analysts warn that the prolonged weakness in graduate hiring could have lasting effects on career progression, particularly in sectors like accountancy and law, where routine tasks are most susceptible to AI disruption. The mismatch between the number of graduates entering the workforce and available roles may also exacerbate youth unemployment and underemployment in the coming years.