Graduate Recruitment in 2025: Why the headlines don’t tell the whole story
In this post, Sharon Cant, Assistant Director (Opportunities), explains why the reality is calmer than the headlines suggest and how the Careers Centre can help.
There has been quite a bit of press coverage recently about the labour market, with some sources reporting a declining number of vacancies and more competition for graduate jobs. Just this week there have been headlines about the UK unemployment rate rising to 5%. We understand that this can feel unsettling. We want to help you make sense of these headlines, provide reassurance and remind you that the Careers Centre is here to support you.
Are there really fewer jobs out there?
That depends who you ask.
Adzuna, who aggregate job listings from over 1000 different sources, have said that graduate job adverts are down nearly 40% year-on-year in their September 2025 UK Job Market report. However, this could partly be a reflection of the fact that employers are being more cautious about placing adverts to try and offset a rise in application numbers – it doesn’t necessarily represent an equivalent drop in vacancies.
Reed, a major UK recruitment organisation has also publicly commented on a reduction in graduate jobs being advertised, and claimed that that AI and Automation are behind this. However, if we look at our own data, there was only a 0.5% decline in roles advertised on Career Connect this October compared to last October. When we also look at data released last month by the Institute of Student Employers (ISE), in their Student Recruitment Survey 2025, the picture seems a lot more balanced.
ISE Report shows market changing, not collapsing
ISE members, who tend to be the larger UK-based student and graduate recruiters, reported that their graduate hiring fell by 8% during the 2024-2025 recruitment cycle. This does make it the weakest year since 2021, but it’s important to note the decline isn’t universal. In fact:
- Over a third of employers increased their hiring volumes over the last year
- Graduate roles were filled at a 97% success rate, showing strong demand and effective recruitment.
- While forecasts suggest a further 7% decline next year, this is largely driven by a few large employers. Excluding them, the market is expected to grow by 1%.
The data from ISE is only part of the picture, and wider reports do indicate that the UK labour market as a whole is weaker than we’d like. Employers, hit by the national insurance and National Living Wage increases, against the background of a sluggish UK economy, are cautious about hiring. However, the evidence doesn’t seem to be there that this is a particular crisis for graduate hiring in particular. Graduate recruiters tend to be conscious of keeping a steady presence in the market – they have weathered downturns before and know that deep cuts can damage their reputation.
The AI effect
There has been a lot of narrative about AI replacing jobs – but the data from ISE doesn’t back that up.
We do expect that AI is going to change the early careers landscape but that is more likely to be a change in the kind of tasks that students and graduates get involved with, not necessarily a widescale replacement of jobs. What the ISE data does show is that AI is impacting recruitment processes, rather than the jobs themselves. ISE members report an average of 140 applications per graduate vacancy, up from 86 just a few years ago, and in part this is attributed to increased use of AI tools allowing applicants to scale applications.
Anecdotal evidence from a number of ISE members we’ve spoken with recently is that this is the theme of this year’s recruitment season, and it is making it increasingly challenging to identify genuine interest and alignment with their roles. Recruiters are telling us that they are seeing extremely similar answers from multiple applicants. The advice we’ve always given, that students should invest their time in fewer, targeted and tailored applications, has never been more valid.
What this means for you
The graduate job market is competitive, yes, but it’s still functioning, adapting, and offering real opportunities. We know that when you are in the midst of applications, it can feel overwhelming, but the Careers Centre has lots of support available. We currently have good availability of appointments, and these are currently bookable up to 7 days in advance, rather than from 6pm the night before which is our process during periods of higher demand. Talking to your peers can also help.
We asked Beccie White, Volunteer and Employability Intern at the Union to share her perspective:
“While the recent statistics can seem worrying, it’s important to remember that there is support available at the University to improve your employability skills. Due to the rapidly changing nature of the job market, employers are looking for transferable skills and soft skills, which can be picked up through a range of activities – not just formal internship schemes. Volunteering in a charity shop, leading or being part of a student society committee, performing in a play or being elected to a representation role are all fantastic ways to demonstrate all-important soft skills.”
We couldn’t agree more!