Competition for university graduate jobs has hit an all-time high, according to a report by the Institute of Student Employers (ISE). The organisation attributed the heightened competition to a slowdown in the graduate job market, the increasing use of Artificial Intelligence (AI) to streamline application processes, and broader entry criteria. The ISE noted this is the highest level of applications per job vacancy since it began tracking the data in 1991. Employers surveyed received over 1.2 million applications for nearly 17,000 graduate positions during the 2023/2024 period. Competition for apprenticeships and other roles for school and college leavers has also intensified, with the average employer receiving 113 applications per vacancy, a 66% increase compared to last year.

AI in recruitment

In addition, the survey found that more than 43% of employers have no issue with candidates using AI at certain stages of the recruitment process. Many employers surveyed reported permitting candidates to use AI tools to draft cover letters, CVs, and to answer online application questions. Whereas 32% of employers advised candidates against using AI in the recruitment process but did not enforce any measures if candidates chose to use it.

International hires

Although most survey respondents have maintained their recruitment of international students, 30% have decreased the number of international hires, and 18% have withdrawn existing job offers. According to the joint chief executive of ISE, Stephen Isherwood, the present jobs market is hard for grads, with a significant rise in applications per job vacancy. “While this marks a positive move from employers encouraging applications from a broader pool of candidates, the downside is that this amounts to millions of rejection messages to students in the last year. We have to realise the impact this can have on students.” He added: “Students should be aware of the vicious circle being created. As AI makes it easier to apply for jobs, volumes are pushed up and quality down, creating more rejections.”

Increasing the chance of landing the job

To improve their chances, students should concentrate on tailoring their applications and gaining work experience, according to the ISE, as employers are increasingly hiring former interns each year. While AI can be beneficial in enhancing applications, they must remain authentic; otherwise, candidates risk ending up in unsuitable positions, Isherwood added.