Graduate jobs likely to be cut due to Brexit uncertainty

Graduate recruitment is likely to reduced in light of Brexit due cost cutting and economic uncertainty.

Before the European Union (EU) referendum on 24 June it was warned that Brexit could reduce the number of graduate vacancies.

TUC general secretary Frances O’Grady said before the referendum: “If the UK votes to leave the European Union, the knock-on impact to the economy would mean even fewer decent jobs for graduates."

Chief executive of graduate website Prospects also said: “Cross border collaboration is essential for both higher education and business to thrive. Leaving the EU would be potentially disastrous for the graduate jobs market, both on a large multinational and more local small to medium enterprise level."

A study conducted by PathMotion before the vote found the banking and finance, retail, media, technology and law sectors believed they would lower graduate intake under Brexit. Along with audit and professional services they make up about 25% or 50,000 graduate jobs.

The survey found that 49% of top graduate employers were likely to lower their graduate intake while others would leave it unchanged. It also found that 25% of employers are likely to increase hiring of British graduates to compensate for fewer EU graduates.

The Times reported on Monday that recruitment experts have said they are considering cutting back graduate jobs as an easy way of saving money in the short term amid Brexit uncertainty.

Managing director of recruitment firm Manpower Group, James Hick told The Times: “It is very likely that we will see a significant reduction in the number of graduate hires across the professional services and investment banking sectors post-Brexit. These organisations rely on attracting the brightest talent from across Europe, and potentially this talent tap is now turned off from coming to the UK.

“Other sectors that are undoubtedly showing less confidence in hiring graduates post the Brexit vote are global manufacturing organisations and their associated supply chains. For those graduates hoping to enter these already very competitive sectors, job opportunities in the short uncertain term have become much harder.”

Recently top-tier banks such as Barclays and HSBC have said they do not plan on moving jobs out of the UK.

Two years after the 2008 recession, graduate recruitment fell by nearly 25% and economists have warned the UK could be heading towards a recession. After the EU referendum result the pound plummeted to 31-year lows.