Graduate vacancies drop for the first time in four years after Brexit
Four years of growth has come to an end in the graduate jobs market as the number of vacancies has dropped this year following the UK’s decision to leave the EU, according to the Association of graduate recruiters (AGR).
The AGR annual survey showed the number of vacancies fell 8% to 19,732 this year compared to 21,427 last year when growth was 13% year-on-year.
Chief executive of the AGR, Stephen Isherwood, said: “The labour market for young people is shrinking for the first time since the financial crisis. The uncertainty of Brexit is the single biggest challenge facing recruiters in the year ahead.”
Vacanies in construction, retail and engineering are the hardest hit. However, for some employers the decline in graduate vacancies has been mitigated by an increased in apprenticeships. The number of apprenticeships has increased by 13% this year to a total of 10,095 opportunities.
In Spring 2017 the government plans to implement an apprenticeship levy which requires all employers with a pay bill over £3m a year to make an investment in apprenticeships. This has had an effect on employers with more than 1 in 10 repackaging some graduate roles as higher apprenticeships.
The rise in apprenticeships is not, however, enough to make up for the shortfall in graduate roles. The overall combined number of vacancies for both graduate jobs and apprenticeships has decreased 3% year-on-year.
“While there remain thousands of vacancies available for university graduates, school leavers will find many more different options open to them for high quality jobs,” said Isherwood.