Graduate jobs plunge to lowest in a decade as AI and rising costs hit entry-level hiring

Vacancies for graduates have fallen to a decade-long low as businesses cut entry-level hiring due to rising costs and the increasing use of artificial intelligence. Jobs website Adzuna said the number of graduate openings on its platform fell to 7,826 last month, down 43 per cent year-on-year. This was the lowest amount of vacancies since it began collecting the data in 2016.It comes as more than half of hiring managers told recruitment agency Reed that AI was leading to fewer job opportunities.The head of the International Monetary Fund, Kristalina Georgieva, also said earlier this month that AI is ‘a slow-moving tsunami’ that will wipe out jobs around the world and destroy opportunities for the young.And the CBI has warned that the rising cost of hiring staff is holding back job opportunities for the young. These have been driven up by inflation-busting hikes to minimum wage rates and the £25billion national insurance tax raid on employers. Graduate job vacancies have plunged to the lowest in a decadeThe average advertised salary for graduate roles held steady at around £27,700 according to Adzuna, which said the lack of positions was pushing up the competition for the roles that did exist.Across the job market as a whole, openings on the website fell to 728,037 in September, down 11.9 per cent year-on-year.There are 2.33 jobseekers per vacancy which Adzuna said was the highest level of competition for roles in over two years.Logistics and IT jobs plummet Listings for jobs in the logistics and warehouse sector dropped 23 per cent year-on-year in September, Adzuna said. IT vacancies fell 11.1 per cent year-on-yea and those in trade and construction fell 5.8 per cent. Teaching vacancies also showed a sharp contraction, down around 4 per cent year-on-year.However, it said healthcare roles were making a recovery. Mental health practitioner roles, specialist nurses, and clinical nurse specialists all saw increases. Other specialist roles in the engineering and legal sectors were also in high demand, reflecting a wider skills shortage. Scotland saw the steepest year-on-year decline of any UK region in September, based on listings on Adzuna's website. These were down 27.2 per cent – more than double the national rate.Yorkshire & Humber and London also recorded significant contractions, and the South East was the only region to show year-on-year growth, up 0.9 per cent. London continues to command the highest average advertised salary at £51,686, with year-on-year wage growth of 6 per cent. Jobseekers-per-vacancy is highest in the North East, West Midlands, and Scotland, reflecting both fewer advertised roles and a larger pool of candidates. Firms forced to disclose salaries September was the first month on record in which the majority of job adverts disclosed pay information.The government launched a formal consultation in July 2026 proposing that all employers be required to disclose salary information in job adverts. Under the proposals, candidates for roles not formally advertised would also receive pay details in writing before the interview. Andrew Hunter, co-founder of Adzuna said: 'The balance of power in the hiring market has shifted further toward employers - which matters a lot to the millions of people out of work right now.'There are a couple of bright spots. Job opportunities in healthcare - nursing, mental health, social care - are still seeing real demand. 'And more than half of UK job ads now include a salary, for the first time. That lands at an interesting moment, with the government consultation on mandatory disclosure closing in days. 'Our data has long suggested that hiding salary puts quality candidates off applying.' Jobs with hottest competition Adzuna's Interest Quotient or IQ score measures the ratio of jobseeker engagement to vacancy volume. These jobs are all experiencing strong demand from candidates relative to the number of roles available. Warehouse Worker - IQ 122.7Lorry Driver - IQ 104.6 Delivery Driver - IQ 90.2Social Care Worker - IQ 90.2Cleaner - IQ 84.4Driver - IQ 72.6Healthcare Support Worker - IQ 64.9Manager - IQ 64.8Assistant - IQ 57.4Project Manager - IQ 57.4 This is Money podcast