Shifting Trends in Entry-Level Recruitment: As Graduate Vacancies Decline, Apprenticeships Increase
A new report from the Institute of Student Employers (ISE) reveals a significant transformation in the UK’s entry-level recruitment market. For the first time since the pandemic-induced downturn of 2020, graduate vacancies have dropped, this year by 8%, while apprenticeship opportunities have risen by an equal margin. This shift in entry-level recruitment underscores employers’ changing priorities as they seek to address skills shortages and diversify their talent pipelines.
Changing Balance Between Graduate and Apprentice Hires
The ISE’s comprehensive Student Recruitment Survey, analysing data from over 155 large employers and more than 1.8 million applications, highlights a rebalancing in recruitment strategies. Although graduates still secure more roles than apprentices, the gap is narrowing. Employers who offer both pathways hired 1.8 graduates for every apprentice this year, compared to a ratio of 2.3:1 last year. Projections suggest this ratio will drop further to 1.6:1 in the coming year.
While graduate roles remain central to early careers hiring, apprenticeships are steadily gaining ground, especially among large businesses with resources to invest in structured schemes. This trend stands in contrast to broader market data, which shows only marginal growth in apprenticeship starts among young adults aged 19-24.
Salary Trends and Market Complexity
Over the past decade, graduate salaries have stagnated or declined in real terms, undermining purchasing power despite a nominal increase. This year’s median starting salary for graduates is £33,000 (up 2%). Meanwhile, school and college leavers saw slightly stronger salary growth, with a median starting salary of £24,000 (up 3%).
The overall entry-level job market has contracted by 5%, reflecting fewer opportunities even as application volumes swell. In part, this is due to the increased costs of employing workers and the impact of AI and new technology, as we highlighted in a recent article.
Graduates continue to outnumber apprentices in recruitment figures, but apprenticeships now represent a more viable alternative for many candidates seeking skilled roles.
Intensifying Competition and Evolving Recruitment Practices
Competition for entry-level positions has reached historic highs. Employers now receive an average of 140 applications per graduate vacancy, more than triple the number two decades ago, with certain industries like retail and tourism seeing up to 290 applications per role. The school leaver market is somewhat less competitive but still challenging at an average of 89 applications per vacancy.
The surge in applications is partly attributed to technological advancements such as LinkedIn’s Easy Apply feature and reduced academic barriers for applicants. However, this ease of access has prompted new challenges: nearly four out of five employers are revising their recruitment processes due to increased use of AI tools by applicants, with many reporting incidents of cheating.
Outlook
In summary, while graduate hiring remains a cornerstone for employers, apprenticeship programmes are becoming increasingly important amid economic uncertainty and evolving business needs. Both students and employers must adapt to these changes, candidates by tailoring their applications strategically, and employers through innovative recruitment practices, to succeed in a fiercely competitive landscape.
Employers Anticipate Rise In Industrial Action
New research by the CIPD has found that employers are increasingly concerned about a potentially unsettled period ahead for industrial relations. Over half (54%) of employers anticipate a rise in industrial action within the next year, with 62% believing the country is entering a less stable era for workplace relations, up 9% since 2022 (53%). The majority of respondents recognise the continued influence of trade unions, with 69% believing that industrial action has the potential to destabilise the economy, while 56% see benefits in collaborating with unions to achieve organisational goals.
Despite generally positive current relations between managers and staff, 79% rate them as good or very good, employers express apprehension about reforms proposed in the Employment Rights Bill. Key concerns include shorter notice periods for strike action, lower voting thresholds for industrial action, and extended mandates for strikes. These changes are viewed warily, especially among non-unionised organisations.
