The Gaduate Job Market Is Getting Tougher

1st December 2025

Recent full-time employment rates for new graduates have dropped. A 2025 survey found only ~56.4% of recent graduates were in full-time work 15 months after graduating — down from previous years.

There are fewer job vacancies aimed at graduates. According to a recent report, advertised graduate-level roles fell sharply — job postings for graduates are at their lowest level in several years.

Competition has surged: one survey found around 140 applicants per graduate vacancy (up from ~86 only a few years prior).

Many graduates end up in jobs that don't require a degree (so-called "overqualification"). Research from CIPD shows a rising share of graduates working in low- or medium-skilled roles — and many report lower job satisfaction, pay, and long-term prospects as a result.

Entry-level jobs — those many graduates rely on — are especially under pressure. Firms are hiring fewer graduates in part due to economic uncertainty and growing use of automation / Artificial Intelligence (AI) to handle tasks once done by junior staff.

There are several overlapping factors driving this increase:

Cost pressures on employers
Rising business costs — such as higher taxes (especially on employers), and increased interest rates — are making it more expensive for firms to keep or hire staff.

Economic slowdown and weakened demand
Inflation, higher interest rates, and squeezed consumer spending reduce demand for goods and services. That leads firms to cut back on recruitment or even reduce headcount.

Falling job vacancies and hiring freezes
Vacancy numbers have dropped for many sectors, especially retail and hospitality. This reduces opportunities for those looking for work.
Office for National Statistics

Structural shifts in the economy & productivity issues
Longer-term trends such as weak productivity growth, automation, and changes in business models make fewer "traditional" jobs available, especially in lower-skilled sectors.

The labour market is "loosening" and employers are hiring less, there are fewer vacancies, and pay growth is slowing.

For many especially young people and lower-skilled workers it may get harder to find jobs.

At a macro level, rising unemployment could weigh on economic growth and consumer spending, possibly affecting broader living-standards and fiscal policy.

"Full-time employment shortly after graduation" doesn't always mean graduate-level work and many full-time roles may not match the skills/expectations that come with a degree.

The data doesn’t fully capture underemployment, job satisfaction, or whether graduates are using their degree skills which are important aspects of “good” graduate outcomes.

Trends vary by field with graduates in sciences, medicine, dentistry tending to see better outcomes than others.

For many, the first 15 months after graduation may just be a start: longer-term career trajectories might differand some may move into better roles, others may stay overqualified.