Uni leavers face unemployment crisis as graduate jobs in the UK fall by a third

Graduates across the UK are facing an unemployment epidemic, as declining vacancies and increasing competition for jobs have left four in 10 graduates out of full-time employment, two years after graduating.  

In June, employment website Indeed stated that UK graduates are facing the worst job market since 2018. In August, three Oxbridge graduates told The Times that they could not get a “good job”. And, at the start of September, PwC announced that it will hire 200 fewer university leavers than it usually does.  

These are only some examples of recent stories that have flooded the media about graduate employment or, rather, graduate unemployment – and while Warwick students have some reason to be hopeful, widespread issues mean graduates are not immune from problems.  

In recent years, discussions around the graduate job market have focused on the negatives: the lack of available positions, the long application processes, and the increasing number of unsatisfied graduate students.  

[Employment website] Indeed has said that the number of roles advertised for recent graduates has fallen 33% since last year

These stories are a result of a job market which seems to be consistently in decline. Indeed has said that the number of roles advertised for recent graduates has fallen 33% since last year and, as of mid-June, postings were already 5% lower than they were at the end of March.   

Research from the International Monetary Fund has also found that more than half of jobs in advanced economies are being increasingly exposed to AI and that many of these positions may be negatively affected. This suggests that AI is playing a role in the decline in available graduate positions, as companies are turning to new technology to complete tasks. As a result, the need for employees has fallen.  

It is not only AI which is threatening graduate jobs, however. The UK’s economic uncertainty is also causing businesses to reduce the number of entry-level positions that they offer. 

The consequence of this is an over-saturated job market with graduates who have just left university competing with previous cohorts who have still not found a job that satisfies them. Data from the Higher Education Statistics Agency’s (HESA) Graduate Outcomes survey shows that 6% of graduates from the class of 2023 are still unemployed two years on.  

1.2 million applications were sent in last year for 17,000 graduate vacancies

The Institute of Student Employment has also said that competition for graduate roles is at a “record high” and estimated that 1.2 million applications were sent in last year for 17,000 graduate vacancies.  

One graduate, Caitlin Morgan, recently told the BBC that she applied for 647 jobs after university before finally getting one.  

Experiences like Morgan’s are becoming increasingly common. Martin Birchall, Managing Director of High Fliers Research, which has been monitoring graduate recruitment since 1995, said that the UK is experiencing “one of the most difficult periods for young graduates in the last 30 years”.   

While the number of advertised roles for recent graduates is at the lowest level in seven years, there are some positives for Warwick students.

Figures from HESA, published last year, showed that most Warwick graduates earn more than their peers from other universities in nearly every subject. It is only the University’s classics, social work, and education graduates whose salaries fall below the national average for their subject. 

81% of 2023 Warwick graduates reported to HESA that their current activities align with their future plans, [and] 84% found their work meaningful

Warwick’s median graduate salary is £32,500 – £3,380 above the overall national average salary for 22-to-29-year-olds. This statistic puts Warwick in joint-sixth place in the table of best Russell Group university for graduate salary prospects. It sits alongside King’s College London, and above Durham, Exeter, and Edinburgh.

Recent research by High Fliers, published in their Graduate Market guide, also shows that Warwick is the fourth-most targeted university by the UK’s leading graduate employers, behind only Birmingham, Manchester, and Nottingham.   

Furthermore, 81% of 2023 Warwick graduates reported to HESA that their current activities align with their future plans, 84% found their work meaningful, and 67% are applying what they learned during their undergraduate salaries in their jobs.  

The University of Warwick’s careers team helps to support students throughout their studies. Their services also extend to those who graduated under two years ago and their web resources are available to all of Warwick’s alumni for life.  

Evidently, the current graduate job market is presenting undeniable challenges for young people. However, Warwick’s strong graduate prospects and career support services provide glimmers of hope for those planning their next steps post-University.