Competition for graduate-level jobs has reached a record high

Competition for graduate jobs has reached a record high, with the average employer receiving 140 applications per role, according to the Institute of Student Employers (ISE).
More than one million applications were submitted for just under 17,000 graduate vacancies in 2023-24 — a 59 per cent year-on-year increase, which makes for the highest demand-supply deficit since ISE began tracking this data in 1991.
Contributing factors include AI speeding up applications, economic challenges, and relaxed entry criteria for some roles.
The ISE surveyed 145 employers, that made over 40,000 new student hires, including 16,865 graduates and 6,014 school and college leavers.
According to the Office for National Statistics, only 60.4 per cent of graduates aged 21 to 30 in England were in “high-skilled” roles last year, while 26.4 per cent were in medium or low-skilled employment and 5.5 per cent were unemployed. The overall unemployment rate for all working age people was 4 per cent in June to August.
AI and automation are reshaping the graduate job market. While almost half, 43 per cent, of the surveyed employers said they had no issue with candidates using AI, a third, 32 per cent, recommended that candidates should not use it.
Stephen Isherwood, joint chief executive of ISE, said: “As AI makes it easier to apply for jobs, volumes are pushed up and quality down, creating more rejections.”
Visa rule changes have further strained the market for international students, with 18 per cent of employers rescinding job offers due to tightened regulations. HSBC, Deloitte and KPMG have all reportedly withdrawn offers to foreign graduates this year due to the changes.
Competition is fiercest in digital and IT, with 205 applicants per role and financial services with 188. Charity and public sector roles attracted fewer applicants, 74 and 85 per role, respectively.
UK vacancies overall decreased by 34,000 between July and September 2024 but remained above pre-pandemic levels, according to the ONS. Graduate vacancies, meanwhile, grew four per cent over the past year, but that is down from a six per cent increase in the previous year. Employers predict only a 1 per cent increase next year, citing economic pressures.