ipocalypse The UK technology industry has slashed graduate employment, with jobs falling by 46% in the past year and predicted to fall by a further 53%, according to figures from the Institute of Student Employers (ISE).
Who is the culprit? AI is already doing entry-level tasks that graduates used to do, such as routine coding, data analysis, and basic digital tasks. Companies still need technical talent, but instead of training new employees, they are hiring experienced employees.
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ISE’s overall statistics show graduate hiring is down 8 percent year-on-year, the first decline in graduate hiring since a 12 percent decline during the pandemic in 2020. Still, the technology and pharmaceutical business sectors have been hardest hit.
ISE co-chief executive Stephen Isherwood said AI was already on the verge of replacing young professionals, as some commentators had feared.
“It’s a tough market for students and young people in general. There’s not a lot of fluidity in the labor market and young people are suffering,” he told the Financial Times.
In terms of the roles organizations are looking for, the technology industry continues to make up the majority of new hires. IT, digital and AI roles are the most popular among recruiters, with 46% of organizations across the economy looking to hire for these skills.
The study also showed that AI is not yet deeply integrated into the recruitment process. Ah, the irony.
ISE research shows that while more than half of employers use automated systems to fully manage some aspects of testing, the use of AI is extremely rare. Employers are most likely to use AI for gamified assessments, but even there the adoption rate is only 15%. The adoption of AI is likely to increase, especially as students leverage technology in the application process.
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Employers are also more likely to be wary of job seekers using AI to commit fraud, with 79% saying they are redesigning or rethinking their hiring processes due to advances in AI. However, only 15% of employers said they had never suspected or identified a candidate for misconduct during an evaluation.
ISE’s numbers show that the tech industry is eating its own dog food. This year, companies like Salesforce and Workday revealed they were cutting thousands of jobs and subsequently implementing AI. Microsoft has announced plans to cut 10,000 jobs from its workforce and replace them with new technology.
Trends in the UK graduate sector are creating a vicious cycle. Graduates are not getting the first roles they need to gain experience, which means fewer mid-level professionals over five years.
If true, this study shows that AI is starting to close the door to tech careers sooner than anyone expected. Graduates appear to be caught in the middle as companies seek short-term efficiency gains at the expense of long-term talent pipelines. ®
