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ApprenticeshipsLatest NewsJob creation and lossesGraduatesRecruitment & retention

Competition for graduate jobs hits record high

by Jo Faragher 17 Oct 2024
by Jo Faragher 17 Oct 2024 A number of factors have led to a jump in graduate candidates per job, according to the ISE
Shutterstock
A number of factors have led to a jump in graduate candidates per job, according to the ISE
Shutterstock

The average employer now receives 140 applications per graduate job, according to new figures from the Institute of Student Employers.

Its annual recruitment survey found that members had received more than 1.2 million applications for 17,000 graduate vacancies in the last year – the highest number of applications per job in over three decades.

The most sought-after roles were in digital and IT, which received 205 applications per vacancy, while finance and professional service attracted 188.

Charity and public sector employers received the lowest number per vacancy, at 74. Employers in the built environment also only attracted 85 applications per graduate role.

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Alongside competition for graduate positions, applications for apprenticeships and other school leaver roles have soared. The average organisation receives 113 applications per this type of role, up 66% in a year.

ISE believes that a slowdown in the graduate jobs market, alongside the use of artificial intelligence to speed up applications are partly responsible for greater competition for roles.

Many employers have also widened their entry criteria in a bid to increase the diversity of their intake. Less reliance on a 2:1 degree or a certain number of UCAS points means a broader range of candidates are eligible to apply.

The organisation found that graduate vacancies grew 4% in the last year, compared to 6% the previous year. Employers predict 1% growth in hiring over the next year, citing economic pressures as a barrier to recruitment.

Candidates using AI in the application process are also on the rise, according to ISE.

While a third of employers recommend that candidates don’t use AI, almost half said they are happy for candidates to do so, mainly for writing cover letters or CVs and completing online applications. Half said candidates had done this.

However, more than two-thirds of employers are considering changing selection processes because of advances in AI.

A further challenge for employers is the changes to the visa regulations, which have made it more difficult to recruit international students.

While most respondents to the survey said that they will continue to recruit from overseas, 18% had rescinded existing job offers due to changes to visa rules.

Stephen Isherwood, joint CEO of ISE, said it was a tough market for graduates, despite efforts to increase diversity of hires.

“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,” he said.

“We have to realise the impact this can have on students. It’s important employers are transparent about the process, providing feedback where possible and managing the rejection process with care.”

Isherwood urged graduates not to be downhearted about the market, stressing that overall, employers maintain a commitment to hiring graduates.

“Applicant volumes have always outstripped vacancy levels and overall opportunities are still growing despite the challenging economic environment,” he added.

“ To help their chances, students should try to focus their applications and get work experience as employers are hiring more and more former interns each year. AI can be useful to enhance applications, but they must be authentic otherwise candidates may find themselves in the wrong job.”

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Jo Faragher

Jo Faragher has been an employment and business journalist for 20 years. She regularly contributes to Personnel Today and writes features for a number of national business and membership magazines. Jo is also the author of 'Good Work, Great Technology', published in 2022 by Clink Street Publishing, charting the relationship between effective workplace technology and productive and happy employees. She won the Willis Towers Watson HR journalist of the year award in 2015 and has been highly commended twice.

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