Key facts
- UK graduate job vacancies reached a decade low in July.
- Vacancies dropped 45.6% year-on-year to 8,383.
- The decline is attributed to rising employment costs and AI adoption.
- KPMG significantly reduced its graduate intake.
- Non-graduate entry-level roles and overall job openings also decreased.
The UK's graduate job market has reached a decade low, with vacancies plummeting 45.6% to 8,383 in the year to July, according to recruitment firm Adzuna. This marks a significant decline from mid-2017 when over 55,000 graduate roles were available.
Adzuna co-founder Andrew Hunter stated that employers have not found a reason to increase hiring at the graduate level. Factors contributing to the slump include rising employment costs, such as Labour's increase to employer national insurance contributions, and the increasing use of AI for entry-level administrative tasks by firms in sectors like tech and consultancy.
KPMG, a major consultancy, reduced its 2023 graduate intake from 1,399 to 942. Non-graduate entry-level roles also saw a decline, falling 8% to 192,864. Overall job openings in the UK decreased by 9.6% to 791,490 in the year to July, with an average of 2.14 people now competing for each vacancy.
The average advertised salary has also cooled, falling 0.73% since May to £43,675 in July. Jobs are taking longer to fill, with employers waiting an average of 36.5 days. While sectors like teaching, travel, construction, and manufacturing are still adding roles, many other sectors are experiencing a more difficult hiring environment.