Where are the jobs? Why graduates are struggling to get hired

Imagine studying for years to earn your degree only to hit a wall the moment you try to start your career. That’s the reality many graduates are facing as today’s job market becomes tougher and less welcoming to those fresh out of university. 

Across the UK, and around the world, graduates are finding it harder to land roles that match their qualifications. Many are forced into jobs that don’t reflect their skills or ambitions. In some cases, even supermarket roles are turning them away. So how can young people break through and secure the careers they’ve worked so hard for?

At Morson, we’re helping graduates rise to this challenge through our Engineering Graduate Scheme, Early Careers Development Programme, and the Morson STEM Foundation, providing practical experience, mentorship, and opportunities to help young people build the future they deserve.

The current economy is stacking the odds against fresh graduates

Recent years brought a lot of concern and challenges impacting the job market. From the COVID pandemic and economic uncertainty to the advancements in technology and automation. It is more difficult than ever for today’s graduates who are trying to break into the workforce.

If you’re struggling to land your first job, you are not alone. As per UK Parliament data, between February and April 2025, 625,000 young people aged 16 to 24 were unemployed, 42,000 more than a year earlier. Also, the youth employment rate climbed to 14.3%, up from 13.6%.

As the Independent reports, unemployment among recent graduates (aged 22-27), has hit its highest level in over a decade (not counting pandemic), with the gap between graduate and national unemployment now at its widest in more than 30 years.

These numbers are worrying not only for new degree holders, they’re a warning sign for the wider economy. 

So, what stops graduates from landing a job?

Chances are you know someone – maybe a friend, maybe it is yourself – who is struggling to find that first role. The barriers graduates face today go beyond just the economy. It’s a mix of financial pressures, changing employer expectations, and wider social challenges that make breaking into the job market tougher than ever. 

Fewer jobs and higher costs

One of the main barriers graduates face right now is the lack of entry-level opportunities. The number of roles advertised for recent graduates has fallen by 33% compared to last year, reaching its lowest point in seven years. And it’s not just graduate jobs. Overall job postings were down 5% by mid-June, as employers respond to rising costs driven by higher taxes, National Insurance, and recent minimum wage changes.

While these measures aim to support workers and the economy, the reality is that higher labour costs often force businesses to scale back hiring, especially for entry-level positions that are already under strain.

Skills gap

Does education automatically open the door to opportunity? 

For years, young people have been told the path to success is simple: work hard, get a degree, and the jobs will follow. But today’s reality is far more complicated. Many graduates are finding themselves overqualified for the roles available, yet still lacking the practical experience employers want. In fact, some are being turned down not just for graduate jobs, but even for positions in supermarkets or warehouses.

At the same time, there’s a skills shortage in key areas like engineering, nursing, teaching, and the trades. As a result of this, employers expect fresh grads to arrive with the “full package,” meaning qualifications, experience, and ready-made networks while the system keeps producing candidates with degrees, but not always the hands-on skills or experience that are in short supply. 

Artificial Intelligence

UK graduates are now facing the worst job market since 2018. And AI is a big reason why. As companies look to cut costs, AI is reshaping workplaces and shrinking entry-level opportunities. 

Tasks that once gave grads a way in are now handled by machines. At IBM, AI covers 94% of routine HR tasks, from performance reviews to development plans. Recruitment is evolving too. Tools like ChatGPT are now part of the hiring process, and entry-level jobs – including apprenticeships and junior positions – have fallen by nearly a third since ChatGPT’s launch three years ago, according to Adzuna. 

AI brings clear benefits, but it mustn’t replace young talent. Graduates are vital to shaping the future. As the Guardian warns, while there’s a push from the technology minister for people to “act now” and gain AI skills, business and government must ensure early career opportunities don’t disappear.

Extended application process

Graduate roles are taking longer to fill, on average, it now takes 6 months to find a job after finishing studies in the UK. Slower job growth rate, increased competition, and employers’ focus on retaining experienced staff mean there is less urgency to hire new talent. For graduates that often leads to frustration and self-doubt.

Young people also struggle with the “silent rejection” or “job ghosting,” which has become all too common in recent years. This is when employers simply cut off all communication without warning or feedback, hoping candidates will lose interest. With no constructive criticism, graduates are left questioning their abilities, unsure of their weaknesses or how to improve.

Competition

If you applied on Indeed or LinkedIn, you’ve probably seen the number of applicants going for the same role. According to the Institute of Student Employers last year’s data, employers are receiving on average 140 applications per graduate job – it makes you think how are you going to compete against all of them…

Gender barriers

As per the International Labour Organization, it is “much tougher” for women than it is for men to find a job. It is also known that women face barriers at almost every stage of their careers – from landing that first job to overcoming the “glass ceiling” and the “broken rung,” that blocks early promotion. But, before advancing, it is the first step that matters. Go Beyond is specifically designed to help female students explore and shape their career paths. 

How to find a job as a graduate – 6 quick steps

Today’s job market is tough for graduates, but there are ways to boost your chances of landing that first role.

1. Tailor your CV to the role

Sending the same CV everywhere is a common mistake as it signals you haven’t really engaged with the job description. Update your CV to highlight the skills and experience that match each position. Link to the portfolio if you have one, and consider creating different CV versions for different types of roles. A polished, professional look makes a difference. And don’t forget to include a cover letter, as it shows you’ve read the description and that you genuinely care about the role and the company. Need help? Find out how to optimise your CV to stand out.

Making a profile on LinkedIn can also help. It is not just an online CV. You can use it to network, connect with professionals, and explore companies that interest you. It’s a powerful tool for discovering career paths.

2. Prepare for an interview 

After a few unsuccessful interviews, it is easy to feel discouraged. But flip your perspective: you’ve now had valuable practice answering questions and you’re more prepared for the next one. To help you out, check out our guide on 5 things you should avoid in your next interview to boost your chances of success.

3. Consider mentorship

Mentorship can be a game-changer. Take Tumi, for example, her six-month mentorship journey with Go Beyond helped her build confidence and shift her perspective on STEM careers as they are often considered male-dominated fields. “I was always passionate about coding and gaming,” she said. “But what was holding me back was the idea that ‘this is what men do.’ I just didn’t have the confidence to do it.” But through mentorship she proved herself wrong and realised she can thrive in those fields.

4. Make a speculative application

If your dream company isn’t advertising vacancies, don’t wait. Send a speculative application – an email, a message on social media or LinkedIn, or application via their website – with your CV and a tailored cover letter. Show why you admire the company and why you’d be a great fit. You can send us your CV.

5. Explore graduate schemes

Graduate schemes can offer structured training, development and career progression. At Morson Group, we provide Early Careers Development Programmes for graduates in fields like in engineering and sales, with a focus on training and career progression. We are also committed to providing support towards chartership and professional memberships for graduates. This could be a great way to start your career journey as the schemes are designed to attract and grow top talent. 

6. Don’t give up!

The market is tough and rejection stings but persistence pays off. As Thomas Edison put it, “The most certain way to succeed is always to try just one more time.” That next try could change everything.

Why not try Morson Group? As the UK’s leading engineering staffing firm, we’re committed to helping young people build meaningful careers. Through different schemes and early careers programmes, we provide practical experience, mentorship, and development opportunities. We also partner with the University of Salford to support graduates in finding their paths. 

Interested? Explore graduate roles on the University’s site or browse our vacancies.

FAQs

Are graduates facing unemployment?
Currently, the job market is quite challenging, with rising unemployment rates. It is higher than the overall national average at the moment, pointing to the toughest job market in years. Between February and April 2025, 625,000 young people aged 16 to 24 were unemployed in the UK.

Why are graduates not getting jobs?
There are many barriers to employment for young people, from lack of the right skills that employers are seeking to economic downturns or the impact of new technology. Currently, the unemployment among recent graduates (aged 22-27), has hit its highest level in over a decade. Find all the challenges and also ways to cope with them in this article.

How do graduates find jobs?
Searching for a job might be quite challenging for new graduates but luckily, there are many recruitment agencies, online job boards, and the university career services. Morson Group has its own job board, and we are committed to supporting young people in navigating their careers.

Can graduates do apprenticeships?
Yes, graduates in the UK can definitely take on apprenticeships, including degree apprenticeships. While you usually can’t do one in the same subject as your degree, you can explore apprenticeships in a different field, for instance through Morson Training. At Morson, we are also supporting youth through early career programmes and other initiatives, such as apprenticeships and professional development.

Does graduating with honours make a difference?
Graduates with honours can generally improve their chances in finding a job, particularly for roles where a higher level of academic degree is in demand. And it’s a good idea to mention it in your CV.