Graduates face worst jobs market on record
Vacancies plunge 45pc as unprecedented numbers of teenagers head to university
TOM WALLACE
Graduates are facing the worst job market on record as vacancies evaporate under pressure from tax and technology.
Just 8,383 roles for university leavers were advertised in July, a 45% drop on a year ago and the lowest since the figures were first compiled in 2016.
The graduate jobs drought contrasts with the record flood of 262,820 18 year-olds preparing to begin their degree studies after earning a university place in their A-level results this month.
It represents a steep challenge to Andy Burnham as rising unemployment and benefits bills limit his options. Meanwhile anger over crippling student debts and the decline in the relative value of a degree is gripping graduates whose Labour votes he will need.
Employers are slashing entry-level hiring after Labour increased National Insurance contributions and the minimum wage, making inexperienced staff less attractive.
At the same time, large employers such as the Big Four accountants are seeking to use AI software to do paperwork that would have traditionally occupied their graduates.
The average graduate salary was advertised at £25,813 last month, roughly equivalent to a full-time job on the minimum wage of £12.71 per hour.
Job prospects for university leavers have sharply deteriorated in the past decade, according to findings by Adzuna, a recruitment website. From a peak of more than 55,000 graduate posts in 2017, vacancies are down 85%.
The crisis will test the new Chancellor John Healey at his maiden Budget in October. Mr Burnham has insisted he will stick to Labour’s manifesto, which pledges no rises in personal tax rates and made employers a target for Rachel Reeves as she sought to fund more public spending.
Her raids have sent youth unemployment soaring. More than 16% of 16 to 24-year-olds are seeking work. More than a million are “Neets”, classed as those not in employment, education or training and harming their long-term prospects. A review by Alan Milburn, a former Health Secretary under Sir Tony Blair, found that one in seven Neets had a university degree.
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