The number of graduate jobs has almost halved in the last year, according to new figures, as employers cut entry-level roles in favor of AI and battle rising costs.
Jobs website Adzuna said it had only 8,383 graduate vacancies listed in July, down from 15,397 at the same time last year.
Adzuna also found that competition among job seekers at all levels is increasing, with an average of 2.14 job seekers per vacancy in July, up from 1.93 a year earlier.
However, some have said the data may not reflect the entire graduate job market and could instead suggest a change in the way jobs are advertised.
Businesses have said employers’ national insurance and minimum wage increases have made hiring more expensive, especially for junior staff.
The number of graduate vacancies listed hit its lowest level since Adzuna began recording such data in 2016. The firm noted a peak for graduate roles in 2017, when it had more than 55,800 listings on its website. This is more than six times the number of positions listed on the site in July.
Andrew Hunter, co-founder of Adzuna, said the figures show that “employers have not yet found a reason to open up hiring” for recent graduates.
But graduate jobs expert Charlie Ball said the figures may not be as bad for graduates as they first appear.
He said they could instead suggest that companies 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 the graduate jobs market “hasn’t collapsed”, but added: “We know the graduate jobs market is weak. We know it’s not in very good shape.”
Official figures show that the UK youth unemployment rate, which covers 16 to 24-year-olds, was 16.2% in the three months to March 2026. The number of young people not in education, work or training (Neet) now exceeds one million.
Young people told BBC News previously that they had applied for hundreds of jobs before even receiving a response.
They also expressed frustration at the growing number of employers using AI to filter applications.
Former government minister Alan Milburn is leading a major review of the youth unemployment crisis. He had previously said that the number of entry-level jobs is shrinking, as is the number of part-time jobs traditionally held by teenagers and students.
Adzuna data also showed that vacancies for jobs in travel, teaching and construction have increased in recent weeks.
But sectors such as healthcare, nursing, hospitality and logistics recorded fewer vacancies.
Prime Minister Andy Burnham recently changed the rules on public contracts so that companies bidding for them have to demonstrate how they will create jobs and training opportunities.
A government spokesman said on Monday: “The latest figures show there are 253,000 more people in work than at this time last year and unemployment continues to fall.
“We are determined to go further to restore opportunities for young people through our £2.5bn youth employment package, which will provide almost a million opportunities to earn or learn.”
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