LONDON / RankWire.AI / – In July, the number of graduate job openings across the UK plummeted by nearly 50% compared to the same month last year, indicating a more constrained entry-level employment landscape. Adzuna recorded 8,383 advertised graduate positions in July, down from 15,397 in July 2025. This represents roughly a 46% decline. The total also marks the lowest figure since the platform started tracking graduate vacancies in April 2016. Notably, graduate roles had peaked at over 55,000 in 2017.
The competition for jobs has also intensified within the broader UK labour market. In July, there were 2.14 jobseekers for each vacancy, an increase from 1.93 a year earlier. This ratio encompasses all sectors of the economy rather than just graduate positions. The data on graduate vacancies derive from online ads collected from more than 1,000 sources, measuring advertised graduate openings in that dataset, not every available job for university graduates.
Official statistics point toward a weakening demand in the wider employment sector. The Office for National Statistics estimated 707,000 vacancies between May and July 2026, a decrease of 6,000 from the previous three months. These vacancies were also 19,000 fewer compared to the same period last year. Additionally, the number of unemployed individuals per vacancy increased to 2.5 from 2.3 during April through June of this year, compared with the same period last year.
Growing Competition for Graduate Applicants
A record number of young individuals secured UK undergraduate placements this summer. According to UCAS, 262,820 UK 18-year-olds had secured a place by results day on August 13, which is 3% higher than the 255,130 recorded at the same stage in 2025. The entry rate for UK 18-year-olds reached 31.6%. These figures provide additional context to a labour market where many future graduates will eventually compete for professional and entry-level roles.
The level of competition is already intense among employers conducting formal graduate recruitment drives. The Institute of Student Employers reported just over one million graduate applications during the 2024/25 recruitment cycle. On average, employers received 140 applications per graduate vacancy, highlighting strong applicant demand within established graduate hiring channels. This demand coincides with the sharp drop in advertised graduate vacancies recorded in the latest monthly employment data.
UK Employment Market Continues to Face Challenges
Since the implementation of changes to employer National Insurance in April 2025, employment costs have also evolved. The contribution rate rose to 15% from 13.8%, and the secondary threshold decreased to £5,000 from £9,100. The latest vacancy survey from the national statistics office revealed some small firms have limited recruitment efforts due to higher labour and operational expenses. Data showed a decline in vacancy levels across nine of the 18 industry sectors surveyed.
The role of artificial intelligence in entry-level employment is increasingly discussed, although official analysis on its specific impact remains limited. Skills England noted in August that isolating AI’s effects from broader labour market trends remains challenging. Meanwhile, between January and March 2026, 1.012 million individuals aged 16 to 24 were outside education, employment, or training, representing 13.5% of that age group—an increase of 89,000 from the previous year.