The number of graduate jobs available in the UK has almost halved in just one year, as businesses cut back on entry level hiring amid rising costs and the growing use of artificial intelligence.
New figures from jobs website Adzuna show there were just 8,383 graduate vacancies advertised in July, a sharp fall from 15,397 during the same month last year.
The figures highlight just how difficult the jobs market has become for young people leaving university and trying to get their first step on the career ladder.
Competition is also getting tougher across the wider jobs market. Adzuna found there were an average of 2.14 job seekers competing for every vacancy in July, compared with 1.93 a year earlier.
Businesses have blamed higher employment costs for making it more difficult to take on new staff. Increases to employer National Insurance contributions and the minimum wage have added to the cost of hiring, with junior and entry level positions among those facing the greatest pressure.
At the same time, the rapid growth of AI is changing the type of work companies need people to do. Tasks that would previously have been handed to junior employees can increasingly be automated, raising concerns that some of the traditional routes into professional careers are disappearing.
Graduate vacancies have now fallen to their lowest level since Adzuna began recording the figures in 2016.
The scale of the decline becomes even clearer when compared with 2017, when more than 55,800 graduate jobs were listed on the website. That is more than six times the number advertised in July.
Andrew Hunter, co founder of Adzuna, said the latest figures show employers have still not found a reason to significantly increase hiring for people who have recently graduated.
The figures come amid growing concern over youth unemployment across the UK.
Official data shows the unemployment rate among 16 to 24 year olds stood at 16.2% in the three months to March 2026. More than one million young people are also now classed as not being in education, employment or training.
For many young people, simply getting a response from an employer has become a challenge. Some have previously told BBC News they have submitted hundreds of job applications before hearing anything back.
There is also growing frustration over the use of AI during the recruitment process itself, with companies increasingly using automated systems to screen applications before candidates ever reach a human recruiter.
For graduates, this comes on top of the financial pressure of leaving university with mounting levels of student debt while facing fewer opportunities to begin their careers.
Former government minister Alan Milburn is now leading a major review into the youth unemployment crisis. He has previously warned that the number of entry level jobs is shrinking, alongside a decline in the part time positions traditionally relied on by teenagers and students looking to gain their first experience of work.
However, the picture varies between industries.
Adzuna recorded an increase in vacancies across travel, teaching and construction in recent weeks. Healthcare, nursing, hospitality and logistics, however, all recorded falls in the number of jobs being advertised.
Prime Minister Andy Burnham has also recently changed the rules surrounding public contracts, requiring businesses bidding for government work to show how they intend to create jobs and provide training opportunities.
The latest figures will add to concerns that an entire generation of young people could find it increasingly difficult to get their foot in the door, as businesses face higher costs and technology reshapes the jobs that were once used to start a career.
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