UK graduate job market weakens as entry-level vacancies hit lowest level since 2020

Graduates entering the UK labour market this summer face one of the toughest hiring environments in recent years, with vacancies aimed at new or recent graduates falling to their lowest level since 2020, according to new data from job platform Indeed.

Graduate job openings are down around 7 percent compared with last year, while advertisements for temporary summer jobs in sectors such as tourism, events and children's camps have also dropped to a four-year low. Graduate vacancies remain close to their lowest recorded share of total job postings.

Indeed attributes the slowdown to employers reducing junior recruitment amid ongoing cost pressures and economic uncertainty. Retail and hospitality, sectors that traditionally employ large numbers of young people, have experienced some of the sharpest declines in payroll employment.

The findings come as youth unemployment in the UK remains elevated. Official figures show that around one million young people are not in education, employment or training (NEET), while unemployment among 18- to 24-year-olds stands at 14.8 percent.

The report also highlights the longer-term implications of fewer entry-level opportunities. Summer jobs and graduate roles often provide essential workplace experience, helping young people develop transferable skills and establish an employment record. A prolonged decline in hiring could delay career progression and reduce lifetime earnings for those entering the workforce during a weak labour market.

The UK government has pledged to improve youth employment through reforms to vocational education, expanded apprenticeship support and subsidised employment opportunities for young benefit claimants. However, Indeed's analysis shows overall UK job postings have fallen 11 percent since the start of 2026 and remain around 32 percent below pre-pandemic levels, suggesting employer caution continues across much of the economy.