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For graduates entering the workforce this fall, the job market is tough. The technology sector, an important source of employment in recent years, is suffering a slowdown. Other industries are holding back opportunities and wages.
Job seekers are advised to consider a wide range of careers and find work experience as early as possible to help them stand out.
These four trends are shaping this year’s graduate. recruitment.
technology
Unemployment in the US technology sector has been rising, driven by layoffs at larger companies. Staff turnover has decreased, potentially creating fewer opportunities, while new jobs increasingly require higher qualifications, particularly four-year degrees.
“It’s a softer hiring environment for new graduates,” says Tim Herbert, research director at the Computing Technology Industry Association. “Whenever there is this type of uncertainty, employers become risk-averse and employees are less likely to look for new jobs or retire.”
However, unemployment Technology remains below par across all sectors and there remains a core demand for software developers and engineers in cloud computing and cybersecurity, for example, says Nimmi Patel, director of skills, talent and diversity at TechUK , the British trade body. “That need is not going away.”
Work experience
More recruiters are looking for candidates with prior work experience, according to Matt Sigelman, president of the Burning Glass Institute, a research nonprofit that analyzed data from the U.S. Bureau of Labor Statistics.
Its review of job postings found that the number of openings for applicants with a bachelor’s degree but no work experience had steadily declined over the past three years. These vacancies in business and finance operations, computing and mathematics, and management roles have halved from 2022 and in life and physical sciences have fallen by a third. “It shows the importance of skills.”
Martin Birchall, CEO of High Fliers Research, a consultancy that surveys the top 100 Russell Group recruiters from leading UK universities, highlights the importance of internships and work experience. “Employers are now so overwhelmed with graduate applications that they don’t look at academic achievements.”
Drop in openings in the United Kingdom
Jonathan Black, director of Oxford University’s careers service, reports a drop in UK graduate places from 7,000 last year to 5,800 in 2024.
Birchall says competition for postgraduate jobs is at an all-time high. High Fliers research shows that investment banks and fund managers are paying salaries among the highest for the fewest competitive roles they offer, but may scale back in 2025. Lidl, the retailer, is also paying well by a smaller number of potential administrators in its graduate program.
However, High Fliers’ survey of recruiter sentiment suggests renewed growth in hiring next year from the two largest sectors hiring graduates: accounting and professional services firms; and public sector employers.
Finances exceed
Prospects appear healthier for MBA graduates from top business schools.
Data collected by the Financial Times for its annual report Master in Management Rankingwhich surveys alumni three years after graduating, shows a steady increase in average earnings, especially since the pandemic.
Last year, those who chose to enter the financial sector (including investment banking, private equity and insurance) performed better compared to other sectors, with average annual salaries above $88,000.
Consulting, technology and manufacturing employees reported a smaller increase in salaries. Earnings fell for those working in retail.
Chris Connors of Johnson Associates, a New York-based financial services compensation consultancy, says the differential rise in financial salaries in recent months reflects fierce competition for recruits, with increases linked to high inflation and a rise of bonuses after two stable years.
