The number of graduate jobs has fallen almost in half in the past year, according to new figures, as employers cut entry-level roles in favour of AI and battle rising costs.
Jobs website Adzuna said it had just 8,383 graduate vacancies listed in July, down from 15,397 at the same point last year.
Adzuna also found competition among job seekers across all levels is rising, with an average of 2.14 job seekers per vacancy in July, up from 1.93 a year earlier.
However, some have said the data might not be reflective of the whole graduate job market and may instead suggest a shift in the way the roles are advertised.
Businesses have said employer national insurance and minimum wage hikes have made hiring more expensive, particularly for junior staff.
The number of graduate vacancies listed hit its lowest level since Adzuna started recording such data in 2016. The firm pointed to a peak for graduate roles in 2017, when it had more than 55,800 listed on its website. That is more than six times the number of roles listed on the site in July.
Andrew Hunter, the co-founder of Adzuna, said the figures show "employers still haven't found a reason to open up hiring" for recent graduates.
But graduate jobs expert Charlie Ball said the numbers might not be as bad for graduates as they first appear.
He said they could instead suggest that firms are advertising fewer roles specifically for graduates, even if the roles themselves still exist and end up being filled by graduates.
From his experience in the sector, Ball said the graduate market has "not collapsed" but added: "We know the graduate jobs market is weak. We know it's not in great shape."
Official figures show the UK's youth unemployment rate - which covers 16-to-24-year-olds - was 16.2% in the three months to March 2026. The number of young people not in education, employment or training (Neet) is now over one million.
Young people have told BBC News previously they have applied for hundreds of jobs before even receiving a response.
They also expressed frustration at the growing number of employers using AI to screen applications.
Former government minister Alan Milburn is leading a major review of the youth unemployment crisis. He has previously said the number of entry-level jobs is shrinking, as is the number of part-time jobs traditionally filled by teenagers and students.
The Adzuna data also showed vacancies for jobs in travel, teaching and construction rose in recent weeks.
But sectors including healthcare, nursing, hospitality and logistics posted fewer vacancies.
Prime Minister Andy Burnham recently changed the rules for public contracts so that companies bidding for them have to show how they will create jobs and training opportunities.
A government spokesperson said on Monday: "The latest figures show there are 253,000 more people in work than this time last year with unemployment continuing to fall.
"We are determined to go further to restore opportunity for young people through our £2.5bn youth employment package which will deliver almost one million opportunities to earn or learn."
