TL;DR
- Graduate vacancies fell by 34.9% in the year to March 2026, according to jobs platform Adzuna
- The total number of grad roles is now near a record low of around 10,000
- AI and economic uncertainty are accelerating a decline that’s actually been going on since 2017
- The “get a degree, get a job, get sorted” promise was always shaky and now it’s visibly broken
- Student loan repayments don’t kick in until you earn over the repayment threshold – £28,470 for Plan 2 (pre-2023 starters) or £25,000 for Plan 5 (2023 onwards)
- How to protect your finances while you wait it out
We all heard the same message at school. Revise for your exams, go to university, graduate, get a good job, and everything falls into place. It seemed simple, but for a lot of people right now, it simply isn’t happening.
New data from jobs platform Adzuna shows graduate vacancies have fallen by nearly 35% in a single year. There are now roughly 10,000 graduate roles advertised in the UK, down from a peak of 55,000 back in 2017. It’s being accelerated by two things: a sluggish UK economy that’s been cooling for two years, and the rapid adoption of AI tools in the private sector, which seems to be hollowing out the entry-level roles that graduates have traditionally walked into.
The truth is that the degree-to-job pipeline has been leaking for years. Are we now done brushing it under the carpet?
Why are there fewer graduate jobs right now?
Graduate employment is expected to be one of the biggest short-term casualties of AI in the workplace because entry-level roles are exactly the kind of work that AI tools can replicate fastest. Think: research tasks, first-draft writing, data processing, basic coding. Companies like Tesco, BAE Systems and Halfords have already scaled back graduate training schemes.
The wider jobs market isn’t collapsing, overall vacancies rose month-on-month in March, and advertised wages are up 4.9% over the past year, which is ahead of inflation. But those gains aren’t flowing to new graduates. The Adzuna co-founder described the market as “stabilising, not recovering.” Which is another way of saying ‘don’t hold your breath’.
Whilst this isn’t a reason to go into panic mode, it is a reason to get control of your money.
What this means if you’re a recent graduate
If you’re struggling to find employment straight after graduating, you might be in a gap between student finance ending and your first proper pay cheque, or you might be doing unpaid work experience or a poorly paid internship, youou might be back at home, or paying rent on a junior salary that doesn’t stretch far enough.
Here’s what to focus on:
Know your numbers.
Before anything else, work out your actual monthly income and outgoings. If you’re living at home, your costs are probably lower than they feel. If you’re renting, be honest about what’s coming in versus going out.
Build even a small emergency fund
Even £500 to £1,000 set aside gives you breathing room if a job offer falls through or your car needs fixing. Having a small buffer does a lot for your peace of mind.
Don’t stress about your student loan (yet)
Your student loan repayments don’t kick in until you’re earning over the repayment threshold, and right now that’s £28,470 a year if you’re on Plan 2 (which applies if you started university before 2023). Below that, you pay nothing, regardless of what you owe. If you’re on Plan 5 (started from August 2023 onwards), your threshold is slightly lower at £25,000, but the same rule applies. The repayment system is connected to your income, unlike normal credit.
Be intentional about the gap
If you’re not in the role you wanted yet, use this time to build skills that make you harder to overlook. AI doesn’t have to be just the problem here, it’s also a tool you can use to get ahead.
Don’t put your whole financial life on hold
It’s tempting to wait until you have the “real job” before you start budgeting, saving, or thinking about money properly. The habits you build now are the ones that stick, so now is your time to take control of your money.
The graduate job market is genuinely harder than it was. You’re not imagining it, and you’re not failing. Sort your financial foundations now and you’ll hit the ground running when the right role lands.
What do you think about the future of the job market, especially for graduates?
We’d love to hear how you’re navigating this or whether you’ve any tips for others. Let us know at thevault@financielle.com.
This content is for general information only and does not constitute financial advice. If you need advice tailored to your personal circumstances, please speak to an authorised financial adviser.