According to the Institute of Student Employers, there has been a dramatic increase in competition for graduate positions. The average employer receives 140 applications for each vacancy.
The ISE’s most recent Student Recruitment Survey shows a 59 per cent increase compared with the previous year. Over 1.2 million applications were submitted for 17,000 graduate positions. This is a record-breaking number for the ISE who have been tracking these data since 1991.
Digital and IT with 205 applications for each vacancy and Financial and Professional Services with 188 applications are the most competitive sectors. The charity, public sector and built environment experienced lower levels of competition, with 74 and 85 applicants per vacancy respectively.
The report noted that the competition for school leaver and apprenticeship roles had intensified. Organisations received an average of 113 applicants per vacancy, marking a 66% increase from last year.
The key factors driving competition
The competition for graduate jobs is increasing due to a number of factors. The slowdown of the graduate job market is a major factor. Vacancies have only increased by 4 percent over the past year compared to the 6 percent growth in the year before. Employers expect a modest growth of 1 percent in the number of vacancies over the next year. They cite ongoing economic pressures for this.
The widespread use of artificial (AI) intelligence has also played a part in the rapid growth of the number of job applications. AI tools allow candidates to submit their applications more quickly and efficiently. This has led to a sharp increase in the number submitted. More and more employers are aware of this trend. In fact, over two-thirds have reported that they are revising their recruitment process or are considering it in response to AI advances.
AI in the Hiring Process
Students are unsure about the appropriate use of AI during the application process due to its widespread use in recruitment. The survey showed that employers have different attitudes to candidates using AI. Nearly half of employers said they were comfortable using AI applications for tasks like writing cover letters, CVs and filling out online forms. Some employers acknowledged that candidates used AI tools in the application process.
Stephen Isherwood warned, however, that increased AI use could lead to a downward spiral of application volume and quality. He said that as AI made it easier to apply, the volume of applications increased and the quality decreased, resulting in more rejections. He encouraged students to narrow their focus and acquire relevant experience in order to increase their chances of being successful. He said that although AI can improve applications, authenticity is still key to ensure candidates land the right roles.
Employers adjusting recruitment practices
To increase diversity in their hiring, some graduate employers have relaxed their entry requirements. This includes a reduction of the emphasis placed on UCAS points minimums and 2:1 degrees. This has led to more applicants being able to apply.
Changes to visa regulations, however, have added additional challenges for students from abroad who are looking for work in the UK. Although most employers said they would continue hiring international students, 18% of respondents stated that they had rescinded their job offers due to the new visa regulations.
Isherwood spoke about the implications of these changes on students. “The current job market is difficult for graduates with a significant jump in applications for each vacancy.” This is a good thing that employers are encouraging a wider pool of applicants, but the downside is the millions of rejections sent to students over the past year. We must be aware of the impact on students.”
He also emphasized the importance of employers being transparent during the hiring process. He encouraged them to give feedback when possible, and to treat rejections with care so as not to discourage students from entering the job market.
Graduate Market Outlook: A Challenging Outlook
Employers have continued to hire graduates despite the increased competition for jobs. Isherwood said that even though the number of applicants has consistently exceeded the number available vacancies, there are still plenty of opportunities for students in this challenging economic climate.
He warned students against giving up on the job market because they perceived it to be difficult to secure roles. Instead, he advised them to gain work experience and apply strategically. Many employers hire candidates who have done internships or worked in their organisation, improving the job prospects of students.
