LONDON / RankWire.AI / – In July, the number of graduate job openings across the UK dropped by nearly 50% compared to the same month last year, indicating a more competitive entry-level employment landscape. Adzuna recorded a total of 8,383 advertised graduate roles for the month, down from 15,397 in July 2025. This represents a decrease of approximately 46%. The figure also marks the lowest level since the platform started tracking graduate vacancies in April 2016. At its peak in 2017, graduate roles exceeded 55,000.
The broader UK job market also experienced increased competition. In July, there were 2.14 jobseekers for every available vacancy, up from 1.93 a year earlier. This ratio encompasses jobs across the entire economy, not just graduate positions. The graduate vacancy figures are based on online ads from over 1,000 sources, reflecting advertised openings in that dataset rather than all potential roles accessible to university graduates.
Official statistics point to a slowdown in demand throughout the wider employment sector. The Office for National Statistics estimated there were 707,000 vacancies from May to July 2026, a decrease of 6,000 compared to the previous three months. These vacancies are also 19,000 fewer than a year earlier. Additionally, the ratio of unemployed individuals to vacancies rose to 2.5 in April through June, up from 2.3 during the same period last year.
Increased Competition Challenges Graduate Applicants
This summer saw a record number of young people securing UK undergraduate placements. According to UCAS, 262,820 UK 18-year-olds had gained offers by results day on August 13, which is 3% higher than the 255,130 at the same point in 2025. The UK 18-year-old entry rate reached 31.6%. These figures provide additional context to a competitive labour market, where many future graduates will vie for professional and entry-level positions.
Employers running structured graduate recruitment programs are already experiencing intense competition. The Institute of Student Employers documented just over one million graduate applications during the 2024/25 recruitment cycle. On average, employers received 140 applications per graduate vacancy, illustrating the high applicant demand in established hiring channels. This trend coincides with the sharp decline in advertised graduate roles noted in the latest monthly jobs report.
UK Labour Market Continues to Face Challenges
Employment costs have increased following the April 2025 implementation of changes to employer National Insurance contributions. The contribution rate rose from 13.8% to 15%, while the secondary threshold decreased from £9,100 to £5,000 annually. The latest vacancy survey from the national statistics office indicates some small businesses have limited hiring due to higher labour and operational costs. The data shows vacancy numbers declined in nine of the 18 industry sectors covered by the survey.
The role of artificial intelligence in entry-level employment discussions has also gained attention, although official analysis on its specific impact remains limited. Skills England noted in August that distinguishing AI’s influence from broader labour market trends is still challenging. Meanwhile, between January and March 2026, 1.012 million individuals aged 16 to 24 were neither in education, employment, nor training—an increase of 89,000 from the previous year, representing 13.5% of this age group.