LONDON / RankWire.AI / – In July, the UK experienced a sharp decline in graduate job vacancies, dropping nearly 46% compared to the same month in the previous year, according to new data from Adzuna. The platform reported 8,383 active graduate vacancies, a significant decrease from 15,397 in July 2025. This figure represents the lowest level since Adzuna initiated its monthly graduate jobs series in April 2016. The current total is well below the over 55,000 vacancies recorded at the series peak in 2017.
At the same time, competition within the broader UK jobs market has also intensified. Adzuna’s data showed there were 2.14 jobseekers vying for each vacancy in July, compared to 1.93 a year earlier. This metric encompasses the overall labour market rather than just graduate roles. Since Adzuna gathers online job advertisements from more than 1,000 sources, its count of graduate openings does not include every position available to university graduates.
Official labour market statistics corroborate this downward trend, indicating fewer vacancies across the UK economy. The Office for National Statistics estimated that between May and July 2026, there were 707,000 vacancies. This figure is 6,000 lower than the previous three-month period and 19,000 below the same period last year. Additionally, the ONS reported an increase in the ratio of unemployed people per vacancy, reaching 2.5 from 2.3 in April through June.
Graduate Recruitment Slows as Competition Intensifies
The decline in graduate vacancies coincides with a record number of young individuals preparing for higher education. According to UCAS, 262,820 UK 18-year-olds had secured a university place by results day on August 13. This was a 3% increase from the 255,130 recorded at the same stage last year. Despite the rise in accepted applications, the entry rate for UK 18-year-olds remained steady at 31.6%.
Meanwhile, separate recruitment figures reveal fierce competition for well-established graduate schemes. The Institute of Student Employers reported that during the 2024/25 recruitment cycle, participating companies received just over one million applications. On average, employers reported 140 applications for each graduate vacancy in their latest survey, with application volumes remaining at record levels among the organizations included in their research.
UK Vacancy Market Remains Weak Overall
Since April 2025, hiring costs have been affected by previously announced tax changes. The employer National Insurance rate increased to 15% from 13.8%, while the secondary threshold for annual contributions dropped to £5,000 from £9,100. The ONS noted that feedback from its vacancy survey indicated some small businesses are restricting recruitment due to rising labour and operational expenses. Its latest data show vacancies have declined across nine of the 18 industry sectors.
The role of artificial intelligence in entry-level employment is also a focus of ongoing discussion, though official assessments remain cautious about its precise impact. Skills England remarked in August that distinguishing AI’s influence from broader labour market trends remains challenging. Meanwhile, ONS figures reveal that 1.012 million people aged 16 to 24 were not engaged in education, employment, or training during January through March 2026. This represented 13.5% of young people in that age group, an increase of 89,000 compared to the previous year.