The graduate talent your business is missing out on – and what to do about it

According to recent headlines, the job market for UK graduates is collapsing. That simply isn’t true.

National Graduate Outcomes 23-24 survey data published on 4 June showed that 80% of UK graduates are in jobs after completing their degree, with only 7% unemployed. Despite concerns about AI, there’s no evidence of a collapse in graduate opportunities.

The UK job market is weak at the moment, admittedly, caused by rising costs, uncertainty and slowing demand. But the graduate job market is standing up well, as it usually does. Many jobs will be available to graduates leaving South West universities this summer, with many of our region’s businesses competing to recruit them.

AI has fundamentally changed recruitment and that’s creating issues. Graduates can find and apply for many more jobs, because AI makes things easier and quicker. But when you read stories about some graduates applying for hundreds of jobs without success, they may not have applied for any of them properly.

Because of AI, employers are now having to deal with a huge increase in applications, which leaves them struggling to shortlist candidates. Moreover, some employers are themselves using AI to screen applications, many written by graduates using AI. Neither of these things are helping. As an employer, you only want to shortlist 10 good applications. Even in the past, when you’d get 100 applications, shortlisting 10 took time, but it was achievable. Now, if you’re getting 500 applications – where do you even start?

From a business perspective, obviously, you must recruit for your business needs. An experienced hire brings lots of knowledge and experience, but for a higher wage. Hiring a fractional employee (ie an experienced professional who works part time) could be the right option for you.

A graduate hire will lack experience, but they can bring new ideas, the latest university knowledge and fresh enthusiasm, which can offer many benefits. And businesses need to bring new blood into the labour market, otherwise, where do the experienced hires of the future come from?

For some businesses, taking on an apprentice is more suitable, much depends on the role, of course. They will require much more training, but it can help to address another big problem – NEETs – younger people who are “Not in Education, Employment or Training”. Published on 28 May 2026, the interim report on the Milburn Review found one million young people aged 16–24 to be NEETs – that’s one in eight young people – which could rise to 1.25 million (one in six) within five years if no action is taken.

Did you know? Business West delivers the Local Skills Improvement Plans (LSIPs), bringing together employers, education and training providers to help ensure post-16 technical education and training better aligns with business needs. Our advisors can provide guidance on a variety of topics to help you attract, recruit, develop, and retain your workforce. This includes identifying the most relevant training providers, navigating apprenticeships, and finding the best training solutions for your business. Find out more here.

People of all ages can add value to your business, but your recruitment strategy must be based on knowing who you need to bring in and when, guided by the skills/talent you need and your finances. Blending team members and bringing in skills that complement others is crucial, too, of course.

UK skills gaps around STEM (ie science, technology, engineering, and mathematics) haven't gone away. Extremely good graduates leave UK universities every year, but there aren’t enough of them in some subject areas. We also have a replacement issue, caused by experienced workers retiring, which also adds to skills gap problems.

To recruit the best employees, whether graduates or otherwise, your employer brand must be attractive. You need a reputation for being a good employer – and that's much more than just salary, there's a big training element, too. Graduates are looking for employers who will invest in their training and development, so they can start to build their career. And many younger people now want to work flexibly, which isn’t always possible, of course, but it can help you to attract the talent your business needs.

Being an attractive employer is also about your work culture, which must be appealing. And there's no hiding that now. There are lots of review websites where employees can anonymously say bad things about you as an employer, whether fairly or not. You must be able to tell your story and explain why your business is a good place to work, while offering work that’s engaging, inspiring and fulfilling, otherwise – why would graduates want to work for you?

Interestingly, many employers don't realise that graduates aren't as mobile as some would have you believe. There’s a dominant, decades-old idea that all graduates disappear off to the bright lights of London. In truth, two-thirds of graduates remain in the region in which they grew up or studied. Whether you’re a graduate or not, we’re blessed here in the South West, because it's such a beautiful place to live, work and put down roots. And it’s so hideously expensive to live in London anyway.

As well as being a graduate recruitment expert with more than 20 years’ experience, Deborah Watson is an innovation and growth consultant at Business West. She is highly experienced at helping SMEs to accelerate their commercial growth by accessing funding and entering new markets. Find out how Business West Consulting could help your business grow.