Graduate Job Vacancies Drop by Almost 50% in a Year Amid AI Push and Rising Costs

The number of graduate job openings in the UK has plummeted by almost half over the last year, hitting a record low since data collection began in 2016. Employers are increasingly cutting entry-level positions, favoring AI integration and grappling with increased operational costs.

Jobs website Adzuna reported just 8,383 graduate vacancies in July, a stark drop from 15,397 during the same period last year. This decline signifies a significant downturn from a peak of over 55,800 graduate roles listed in 2017. Andrew Hunter, co-founder of Adzuna, noted that employers "still haven't found a reason to open up hiring" for recent graduates.

Businesses attribute the hiring freeze to escalating expenses, including hikes in employer national insurance contributions and the minimum wage, which make employing junior staff more costly. This economic pressure, coupled with the perceived efficiency of AI, is leading to a reduction in traditional entry-level roles.

The figures paint a grim picture for young job seekers. The UK's youth unemployment rate, covering ages 16-24, stood at 16.2% in the three months to March 2026. Furthermore, the number of young people not in education, employment, or training (Neet) has surpassed one million. Many graduates report applying for hundreds of jobs without receiving responses and express frustration over AI-powered application screening processes. Meanwhile, sectors like travel, teaching, and construction have seen an increase in vacancies, though healthcare, hospitality, and logistics have posted fewer openings.

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employers still haven't found a reason to open up hiring