Graduate job vacancies in the UK have fallen to a record low, with a 45.6% drop in the year to July leaving just 8,383 positions advertised, according to recruitment firm Adzuna. The figure is below the previous record low recorded in May and highlights the continuing deterioration in opportunities for university leavers.
The decline has been dramatic over the longer term. In the middle of 2017, there were more than 55,000 graduate positions available, compared with fewer than 10,000 today.
Record low for graduate vacancies
The news comes as 262,820 18-year-olds prepare to start degree courses after securing university places following this month’s A-level results, raising questions about the employment prospects awaiting them when they graduate.
Some of Britain’s biggest employers have already reduced their graduate recruitment. The Big Four accountancy and consultancy firms have been among those cutting back, with KPMG reducing its graduate intake from 1,399 in 2023 to 942.
Experts weigh in on university's value
Lukas Kaminskis, CEO of Turing College, said: “The graduate jobs market is being squeezed from both sides. Businesses are cautious about adding headcount while costs including higher employer National Insurance contributions and energy bills affect profits.
“At the same time, AI can increasingly perform some of the routine work that traditionally gave graduates their first step onto the career ladder. This does not mean there will be no jobs for young people, but it does mean a degree alone is becoming less of a guarantee of employment.”
David Belle, founder and trader at Fink Money, questioned whether university was a legitimate route anymore. He added: "University hasn't been worth it for a long time. It has become an industry in itself where administrative staff have received higher wage increases than faculty for four years in a row."
Apprenticeships as an alternative
Kelly Smallcombe, fractional chief people officer at Meliorem HR Consultancy, said "a degree shouldn't be the automatic default". She added: "These figures aren't really about graduates, they're about risk. Employers have always had the option to let an underperforming graduate go; stronger employment rights make that harder, so many are simply not hiring them at all."
Paul Denley, CEO at London-based Oakham Wealth Management, said skills and experience were just as important as university now. He added: "The numbers are grim, but they don’t mean university is worthless. They mean the calculation has changed. A degree is no longer a golden ticket to a graduate job; it is one route among several, and often the slowest and most expensive."
Riz Malik, Independent Financial Adviser at Southend-on-Sea-based R3 Wealth, said many students were landed with high debt, too. He added: "Unless a degree is necessary for your dream job, seriously consider an apprenticeship if one is available."
