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An 8 percent drop in graduate hiring in the UK has coincided with a rise in apprenticeship recruitment, signalling a structural shift in early-career talent strategies driven by economic uncertainties and sector-specific skills shortages, according to an Institute of Student Employers survey.
Graduate hiring in the United Kingdom has experienced an 8 percent decline since 2024, marking the first year-on-year fall since 2020, while apprenticeship recruitment has risen by an equivalent 8 percent, according to a recent survey by the Institute of Student Employers (ISE). The survey, conducted across 155 of the UK’s largest employers who collectively recruited over 31,000 individuals into structured graduate and apprenticeship programmes during the 2024-25 hiring cycle, highlights a significant shift in early-career recruitment strategies amid ongoing economic uncertainty and sector-specific challenges.
Stephen Isherwood, joint chief executive of the ISE, explained that this adjustment reflects employers’ efforts to diversify talent pipelines to address acute skills shortages. Larger organisations, spanning sectors including law, finance, engineering, pharmaceuticals, retail, technology, and the public sector, are increasingly favouring apprenticeship routes, especially for school and college leavers, in part due to recent policy changes limiting the use of the apprenticeship levy on higher-level training for current employees. While 92 percent of graduate hiring continues as usual, the labour market conditions remain tough, though not to the severity witnessed during the 2008 financial crisis or the COVID-19 pandemic.
The decline in graduate recruitment is notably steep in the pharmaceuticals and information technology sectors, where employers have scaled back graduate roles in favour of hiring school-leaver apprentices. The ISE’s data project a continued rebalancing in recruitment ratios—from 2.3 graduates per apprentice in 2024 to an anticipated 1.6 to 1 in the coming year—signalling a structural shift in entry-level talent acquisition. This trend is reinforced by 88 percent of organisations using the apprenticeship levy predominantly to fund programmes for school and college leavers rather than for upskilling existing workers.
Despite fewer graduate positions being available, competition remains intense. Employers reported receiving an average of 140 applications for every graduate vacancy in 2024-25, unchanged from the previous year but significantly higher than the 86 applications recorded in 2022-23. School-leaver apprenticeship roles attracted 89 applications per vacancy. The heightened competition is partly due to graduates applying for more roles amid labour market pressures, aided by easier online application processes and a shift among about a quarter of employers to broaden entry criteria by removing minimum academic requirements.
Salary prospects for graduates have shown modest growth, with the median starting salary rising to £33,000, a 2 percent increase year-on-year. For school and college leavers entering apprenticeships, the median starting salary has increased by 3 percent to £24,000. Government spokespeople have emphasised that while higher education remains a strong investment for most graduates, it is not the only route to career success. Consequently, ministers are expanding pathways through high-quality apprenticeships and further education alongside university routes.
Within industries, sectors such as Built Environment, Retail, Fast-Moving Consumer Goods (FMCG), and Tourism display relatively higher employer support for increasing apprenticeship-aligned roles, reflecting broader efforts to respond to evolving skills demands. However, around one-third of surveyed employers are awaiting further clarity on impending UK apprenticeship reforms, which continue to shape recruitment strategies.
In summary, the latest ISE survey underscores a pivotal moment in UK graduate and apprenticeship recruitment dynamics. As economic uncertainties persist and skills shortages intensify across key sectors, employers are recalibrating their approach to talent development by elevating apprenticeship opportunities while managing a tighter graduate job market marked by heightened competition and shifting entry standards.
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Source: Noah Wire Services
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The narrative presents recent data from the Institute of Student Employers (ISE) survey, dated October 15, 2025. Similar findings have been reported by other reputable outlets, such as ITV News and the Express & Star, indicating that the information is current and not recycled. ([itv.com](https://www.itv.com/news/2025-10-14/graduate-hiring-has-fallen-8-since-last-year-study-finds?utm_source=openai))
Quotes check
Score:
7
Notes:
Direct quotes from Stephen Isherwood, joint chief executive of the ISE, are consistent across multiple sources, suggesting potential reuse. However, no significant variations in wording were found, indicating a high degree of consistency. ([itv.com](https://www.itv.com/news/2025-10-14/graduate-hiring-has-fallen-8-since-last-year-study-finds?utm_source=openai))
Source reliability
Score:
6
Notes:
The narrative originates from China Daily, a state-owned media outlet. While it provides accurate data from the ISE survey, the source’s reliability is moderate due to potential biases associated with state-controlled media.
Plausability check
Score:
9
Notes:
The claims align with recent trends in the UK job market, where employers are increasingly favouring apprenticeships over graduate roles. The data is corroborated by multiple reputable sources, enhancing its credibility. ([itv.com](https://www.itv.com/news/2025-10-14/graduate-hiring-has-fallen-8-since-last-year-study-finds?utm_source=openai))
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): HIGH
Summary:
The narrative presents current and consistent data from the ISE survey, corroborated by multiple reputable sources. While originating from a state-controlled media outlet, the information is accurate and aligns with recent trends in the UK job market.
