Graduate job vacancies have dropped by almost 50% in the space of a year as employers cut entry-level roles in favour of AI and battle rising costs, a survey has found.
Figures from job website Adzuna show that there were just 8,383 graduate vacancies listed in July, down from 15,397 twelves months ago. This is a drop of 45%.
This is the lowest level of graduate vacancies since 2016 when Adzuna started recording this data.
At the same time, competition for graduate jobs had gone up, rising to an average of 2.14 job seekers per vacancy in July, up from 1.93 at the same point last year.
Andrew Hunter, a co-founder of Adzuna, said: “July’s numbers are a step backwards, not a blip. The annual vacancy decline got worse for the first time since January, and (the number of) jobseekers per vacancy are now higher than they were a year ago.
“The graduate job market also keeps setting new lows, which tells us employers still haven’t found a reason to open up hiring at that level.”
According to Adzuna, sectors such as healthcare, nursing, hospitality and logistics were posting fewer vacancies.
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However, Hunter said teaching, travel, and trade and construction are still adding roles, as is manufacturing.
He added: “But that’s a short list, and everyone outside of these sectors is having a harder time than they were three months ago.”
Reacting to the findings on X, journalist Lewis Goodall said the declining employment opportunities for graduates is “rapidly developing into a national crisis.”
Over recent months, businesses have complained about the rising cost of hiring, pointing to the rise in employer national insurance and minimum wage.
Many firms are turning to AI to help cut costs and perform tasks that may previously have been done by junior staff in entry-level roles.
Earlier this year, the Office for National Statistics revealed that over one million young people (16-24-year-olds) were not in education, employment or training, known as Neet.