Employment hits those without a degree harder amid labour market slowdown

In recent years, many university graduates are finding it harder to find employment. This was outlined by research by the Institute of Student Employment, which found that employers reduced hiring by 8% in the last academic year and forecast it to fall by a further 7% this year.

Stephen Isherwood, the joint Chief Executive of the Institute of Student Employment, argued that it is simply down to an overall slowdown in hiring, and not an increase in AI as most fear.

The Office of National Statistics showed that job openings fell by 5.8% between May and June across all industries. Potential reasons for this include broader struggles within the economy such as an increase in costs for businesses, with UK inflation up to 3.8% in this year up to August, as well as the increase in employers' national insurance from 13.8% to 15%.

In addition, global uncertainty around trade may also be responsible for companies being reluctant to hire with the introduction of US tariffs of 10% on most UK goods imported into the US.

So, if the fall in graduate employment is likely due to an overall slowdown in hiring, how do graduates compare to non-graduates?

Young workers across Europe without a degree have seen an 2.4% uptick in joblessness compared to a 1.4% uptick for recent graduates. This indicates that although joblessness for recent graduates is on the rise, it is on the rise less steeply in comparison to young non-graduates. Therefore, when looking at whether or not the university pathway is still the best option for young people it is important to keep in mind the general state of the country's economy.