The Institute of Student Employers (ISE) has reported a sharp rise in competition for graduate jobs, with the average employer receiving 140 applications per vacancy.
This represents a 59 percent increase compared to the previous year, as highlighted in the ISE’s latest Student Recruitment Survey. The surge in applications has resulted in over 1.2 million submissions for approximately 17,000 available graduate positions, setting a new record for the ISE, which has been tracking this data since 1991.
The most competitive sectors for graduate roles include digital and IT, with 205 applications per vacancy, and financial and professional services, with 188 applications per role. In contrast, the charity and public sector, along with the built environment, experienced lower competition levels, receiving 74 and 85 applications per vacancy, respectively.
The report also noted that competition for apprenticeship and school leaver roles has intensified, with organisations receiving an average of 113 applications per vacancy – marking a 66 percent increase over the previous year.
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Key Factors Driving Competition
Several factors are contributing to the rise in competition for graduate roles. One key reason is the slowdown in the graduate jobs market, with vacancies growing by just 4 percent in the last year, compared to 6 percent in the previous year. Employers are forecasting a modest 1 percent growth in vacancies for the upcoming year, citing ongoing economic pressures as a primary challenge to increasing hiring numbers.
In addition, the widespread use of artificial intelligence (AI) has played a role in accelerating the volume of job applications. AI tools make it easier for candidates to submit applications quickly and efficiently, a factor which has contributed to the sharp rise in the number of submissions. Employers are increasingly aware of this trend, with more than two-thirds of companies reporting that they are either revising or considering revisions to their recruitment processes in response to AI advancements.
AI and the Hiring Process
The use of AI in recruitment has sparked some uncertainty among students regarding its appropriate usage during the application process. The survey revealed a divide in employer attitudes towards the use of AI by candidates. While a third of employers recommend that candidates refrain from using AI in their applications, nearly half indicated they are comfortable with AI-assisted applications, particularly for tasks such as writing cover letters, CVs, and completing online forms. Some employers even acknowledged that candidates had used AI tools during the application process.
However, Stephen Isherwood, joint CEO of ISE, warned that the increased use of AI could create a cycle of rising application volumes but declining quality. “As AI makes it easier to apply for jobs, volumes are pushed up and quality down, creating more rejections,” he said. He advised students to focus their applications and gain relevant work experience to improve their chances of success. He added that while AI can enhance applications, authenticity remains key to ensuring candidates secure the right roles.
Employers Adjusting Recruitment Practices
In an effort to increase diversity among their hires, graduate employers have reduced some of their traditional entry requirements, including less emphasis on minimum UCAS points and 2:1 degree classifications. This has opened up more opportunities for a broader range of applicants.
However, changes to visa regulations have created additional challenges for international students entering the UK job market. While most employers indicated they would continue to hire international students, 18 percent of respondents revealed they had rescinded job offers as a direct result of the new visa rules.
Isherwood commented on the broader implications of these changes for students, saying, “The current jobs market is tough for graduates, with a considerable jump in applications per vacancy. While this marks a positive move from employers encouraging applications from a broader pool of candidates, the downside is that this amounts to millions of rejection messages to students in the last year. We have to realise the impact this can have on students.”
He also stressed the importance of transparency from employers during the recruitment process, urging them to provide feedback where possible and to handle rejection with care to avoid dissuading students from engaging with the job market.
The Challenging Outlook of Graduate Market
Despite the increase in job competition, employers have remained committed to hiring graduates. Although applicant volumes have consistently outstripped the number of available vacancies, Isherwood emphasised that there are still opportunities for students, even in a challenging economic environment.
He cautioned against students stepping away from the job market entirely due to the perceived difficulty in securing roles, advising them to focus on gaining work experience and applying strategically. Many employers are increasingly hiring candidates who have completed internships or work placements within their organisations, which can significantly improve job prospects for students.
