The competition for entry-level jobs is rising given that the number of jobs available for young graduates sees an imminent stagnation on the horizon.
Employers were planning to recruit only 2.7 percent more new school-leavers and graduates in 2020, according to the Institute of Student Employers’ (ISE) Pulse Survey for 2020. However, recruiters who are targeting students are missing their targets as a result of a stagnating jobs market across the UK, according to the research.
Out of the 3.4 Mn jobs created in the last decade, about 400,000 were skilled and semi-skilled. About 2.5 Mn who were considered professional or senior jobs were occupied by more experienced workers and 500,000 were classified as low-skilled. In the last decade, jobs in the UK have been deemed too senior for freshers to fulfill them or on the other hand, there are jobs that are classified as low-skilled and do not require university degrees.
According to the Institute of Student Employers, employers in the UK were planning to increase graduate recruitment by about three percent in 2020 compared to the 18 percent rise in “graduate vacancies predicted last year.”
Even though the situation is not as dire as the 25 percent drop in vacancies as of 2008/2009, employers are still reluctant to expand their investment in hiring new staff, and that is an indicator of the economy’s poor health.
The only silver lining of the graduate labor market cloud is that the non-profit and private sector predicts about 14 percent rise in vacancies. As the government plans to focus on spending more on policing and the National Health Service, the demand for recent graduates in this sector is also set to rise.
In light of Brexit woes and uncertain economic conditions, employers in the UK are becoming increasingly risk-averse and are looking to curtail its cost and sustain the business by leveraging existing staff. Thus, the slump in the growth of graduate vacancies is an indication of a larger economic health issue in the country.