A new survey from jobs website Adzuna reveals a significant contraction in entry-level positions for university graduates. The platform recorded 8,383 graduate vacancies in July, representing a decline of nearly half compared to the same period in the previous year when 15,397 positions were advertised. This marks the lowest vacancy count since Adzuna began tracking such data in 2016, when the market previously peaked at over 55,800 roles.
Employers have attributed the reduction in hiring to multiple factors, including rising national insurance contributions and minimum wage increases that raise labor costs, particularly for junior staff. Additionally, some businesses have turned toward artificial intelligence to fulfill roles previously designated for entry-level workers. The shift has intensified competition among job seekers across all employment levels, with an average of 2.14 applicants competing for each vacancy in July, compared to 1.93 the previous year.
However, some observers have cautioned against interpreting the figures as a complete reflection of the graduate employment market. Charlie Ball, an expert in graduate recruitment, suggested that employers may be advertising fewer positions specifically designated for graduates, even though graduate-level workers continue to fill roles that exist in the market. Ball acknowledged that while the graduate sector faces weakness, it has not fully collapsed.
Official government statistics indicate the UK youth unemployment rate stood at 16.2% in the three months to March 2026, with over one million young people classified as not in education, employment or training. Vacancies in travel, teaching, and construction sectors showed recent increases, while healthcare, nursing, hospitality, and logistics experienced declining opportunities. The government has implemented new public contract rules requiring bidding companies to demonstrate job and training creation, and announced a £2.5bn youth employment initiative.
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