The number of graduate jobs in the United Kingdom (UK) has fallen nearly 50 per cent in the past one year, as employers cut entry-level roles in favour of AI and due to rising costs, according to a report by the British Broadcasting Corporation (BBC), citing new figures.
As per the report, Jobs website Adzuna said it had just 8,383 graduate vacancies listed in July, down from 15,397 at the same point last year. The data also found that competition among job seekers across all levels is rising, with an average of 2.14 job seekers per vacancy in July, up from 1.93 a year earlier.
The report highlighted that the number of graduate vacancies listed hit its lowest level since 2016. The firm pointed to a peak for graduate roles in 2017, when it had more than 55,800 listed on its website. That is more than six times the number of roles listed on the site in July this year.
Speaking with BBC, businesses have said that employer national insurance and minimum wage hikes have made hiring more expensive, particularly for junior staff.
Andrew Hunter, the co-founder of Adzuna, said that the figures show "employers still have not found a reason to open up hiring" for recent graduates. On the contrary, graduate jobs expert Charlie Ball suggested that firms are advertising fewer roles specifically for graduates, even if the roles themselves still exist and end up being filled by graduates.
From his experience in the sector, Ball said that the graduate market has "not collapsed" but "is weak." "We know it's not in great shape," he added.
United Kingdom's official figures have shown that the UK's youth unemployment rate (from 16 to 24 years old) was 16.2 per cent in the first three months of 2026. The number of young people not in education, employment or training is now over one million, the report highlighted.
Young people have expressed their frustration, while speaking to BBC, at the growing number of employers using AI to screen applications.
According to the report, former government minister Alan Milburn is leading a major review of the youth unemployment crisis. He has previously said that the number of entry-level jobs is shrinking, as is the number of part-time jobs traditionally filled by teenagers and students, the report said.
The Adzuna data also showed vacancies for jobs in travel, teaching, and construction rose in recent weeks. But sectors including healthcare, nursing, hospitality and logistics posted fewer vacancies, as per the report.
UK Prime Minister Andy Burnham recently changed the rules for public contracts so that companies bidding for them have to show how they will create jobs and training opportunities.
A government spokesperson said on Monday: "The latest figures show there are 253,000 more people in work than this time last year with unemployment continuing to fall."
"We are determined to go further to restore opportunity for young people through our £2.5 billion youth employment package which will deliver almost one million opportunities to earn or learn," the official added.
