Graduate Job Prospects Decline to Pre-Pandemic Levels Ending Covid Hiring Boom

Recent research indicates that graduate job prospects have fallen back to pre-pandemic levels, following a decline in hiring. The study, conducted by Prospects at Jisc and published on November 25, reveals the impact of a slowing economy on the labor market for recent graduates.

2023 Graduate Employment Rates Decline

The annual report, “What do graduates do?”, highlights a significant drop in employment outcomes for the class of 2023. This cohort entered the job market during a period of reduced demand and was surveyed in autumn 2024 when conditions continued to deteriorate.

• Only 56.4% of graduates secured full-time employment 15 months after graduation.
• This represents a decline of 2.6 percentage points from the previous year.
• It is the lowest employment rate since the cohort that graduated in 2020, just before the Covid recovery.

Rising Unemployment Rates

Graduate unemployment has also increased, from 5.6% to 6.2%. However, this figure is still significantly lower than the overall youth unemployment rate, which stands at 15.3%. Industry expert Charlie Ball from Jisc referred to this situation as a return to normal labor market conditions after the short-lived post-pandemic job boom.

Sector-Specific Trends

One of the most critical trends is the decline in graduates entering IT roles. Only 5.1% of graduates moved into technology positions, down from 6.7%. This shift indicates a reduction in IT job vacancies as the sector adjusts after a period of over-hiring.

• Administrative roles have also seen a notable decrease.
• Retail has again emerged as the largest sector for non-graduate employment, reflecting pre-Covid job patterns.

Self-Employment and In-Demand Sectors

Interestingly, self-employment has rebounded sharply to 11.4%, an increase from 8.8% last year, after a downturn during the pandemic. Despite the overall softening of the job market, there remains a strong demand for skilled personnel in several key sectors.

• Engineering
• Information Technology (IT)
• Health and Social Care

Top graduate positions are currently held by nurses, coders, doctors, teachers, and marketing professionals. Ball reassured graduates about their career potential, emphasizing that those with higher education generally secure good jobs, even in challenging times.

Tips for Graduates Navigating a Tough Job Market

Graduates are encouraged to seek support from careers services and remain vigilant regarding job opportunities. Ball advises against being swayed by the hype surrounding artificial intelligence, noting that while job loss due to AI is currently minimal, the need for skilled individuals remains strong. The competition may be tougher, but those with the right qualifications and support are likely to succeed in their job searches.