Technology | What's really happening in graduate recruitment - and AI's role

Claire Tyler, Head of Insights at Institute of Student Employers, delves into the annual Student Recruitment survey to reveal a rebalancing of entry-level roles and an AI arms race is afoot.

While recent headlines warn of steep declines in graduate hiring, the reality is more nuanced: graduate hiring has dipped, but not collapsed, and employers are rethinking their recruitment strategies amid rapid advances in AI.

Graduate hiring: Cooling, not crashing

Our latest Institute of Student Employers (ISE) Student Recruitment Survey shows an 8% fall in graduate hiring this year, marking the weakest year of recruitment since the 12% decline during the pandemic in 2020. However, this downturn isn’t universal: 42% of employers reduced graduate hiring, 25% maintained levels, and 33% increased them.

The slowdown largely reflects broader economic conditions. According to REC, job adverts across the wider market also fell 13% year-on-year. Looking ahead, we expect the market to remain challenging as ISE members forecast a further 7% decline in graduate recruitment for 2025/26.