This summer, around 800,000 students graduated from university, many of whom are now entering the job market for the first time. Unfortunately, the graduate jobs market is a mixed bag.
Recent graduates, those who graduated post-2020, are facing unemployment rates of 12% and graduate jobs are in decline year-on-year. But are UK graduates alone in this experience?
We look at the global landscape of the graduate jobs market, uncovering some of the winners, and some of the losers.
United Kingdom: Where we are
Graduate vacancies, August 2023: 24,835
Average grad salary: £25,000
The United Kingdom has witnessed a noticeable slowdown in the job market. According to a recent Adzuna UK Job Market Report, advertised vacancies in the UK decreased by -8% in August 2023 compared to the previous year.
Graduates are bearing the brunt of these hiring slowdowns, with a sharp -30.9% decrease in graduate jobs in the last twelve months.
It’s impossible to ignore the impacts that inflation, Brexit, and the conflict in Ukraine have had on the jobs market, especially for those with less work experience. However, the year-on-year decline in overall hiring is slowly shrinking, so there may be signs things are getting better.
Search for graduate openings in the UK here.
Europe: A similarly struggling market
France, Graduate vacancies, August 2023: 27,548
France, Average grad salary: €32,619
The situation is mirrored across Europe, with countries like Germany, France, and Poland experiencing similar declines in graduate vacancies, with drops ranging from -24% to -26%. For these countries, many of the same key factors such as inflation are at play.
Germany, Graduate vacancies, August 2023: 23,467
Germany, Average grad salary: €27,402
Germany, a usually resilient European economy, has been stagnant since earlier this year and in August four of six key German states saw inflation rising.
United States: A more resilient market
Graduate vacancies, August 2023: 491,354
Average grad salary: $39,833
Compared to the UK and Europe, the US graduate jobs market has experienced a +29.1% year-on-year growth. Despite the ongoing challenges, inflation in the US has remained more under control than in the UK and Europe.
Graduates are benefiting from a shortage of skilled workers, a situation exacerbated by the retirement of baby boomers and shifting worker demands. Although there are some signs that the market is cooling after the “Great Resignation”, there are still plenty of graduate opportunities.
Of the over 4 million students graduating college each year in the USA, there are graduate roles for 12% of them. Substantially higher figures than all other graduate markets except for Singapore.
Singapore: A thriving market
Graduate vacancies, August 2023: 25,806
Graduate opportunities in Singapore have more than doubled in the last twelve months. It’s a country that continues to thrive, especially in tech, law, and finance. The country has recently benefited from the relocation of major multinational corporations’ Asia-Pacific headquarters to Singapore due to many companies pulling out of Hong Kong. This influx of global businesses, such as FedEx, HSBC, Dyson, and VF Corporation, has created more opportunities for graduates in the region.
Singapore has a relatively small student population with just six universities. Each year, just 10,000 students graduate from a Singaporean University with a similar portion of residents choosing to study overseas in the US, UK, and Australia.
With over 25,000 graduate roles available, there are more roles currently than the annual student graduation numbers, meaning not only is Singapore a fantastic graduate market to be a part of but it is also a country that relies heavily on graduates from elsewhere.
India and South Africa: Emerging graduate markets
India, Graduate vacancies, August 2023: 38,044
India, Average grad salary: ₹291,667
India saw an +85.5% increase in graduate roles over the last 12 months. With more access to higher education and a focus on in-demand STEM skills in technology and AI, the skills Indian graduates offer are highly sought after by global companies.
India is also a hub for AI, ranking behind only the US and France in terms of the number of AI job opportunities advertised earlier this summer.
However, it is estimated that between 6 and 10 million people in India graduate each year, many of whom are entering the job market. Even with substantial job growth, less than 1% of students are entering graduate roles.
South Africa, Graduate vacancies, August 2023: 14,936
South Africa, Average grad salary: R224,333
South Africa saw a +41.5% increase in graduate jobs, over 10% more than the growth in the US. However, based on annual graduation figures only 4.5% of graduates are finding graduate jobs.
Canada and Australia: Some year-on-year stability
Australia, Graduate vacancies, August 2023: 8,589
Canada and Australia have experienced slight declines in graduate jobs, -14.4% and -1.7% respectively. With neither market particularly large, these declines account for a very small decrease in numbers.
Like the UK and Europe, Australia has experienced numerous interest rate rises. However, the jobs market has remained resilient with near half-century lows in unemployment and the jobs market has remained buoyant.
The very slight decline in graduate roles could partly be down to an ongoing mismatch. Students are encouraged to take STEM subjects, but on graduation there simply isn’t as much demand as the Australian government was anticipating. A relatively vocationally-minded recruitment market means these graduates are hard to place.
Currently, advertised graduate roles account for just 2% of the graduating class, although of course, the Australian academic year ends in December rather than June or July.
Canada, Graduate vacancies, August 2023: 17,453
Canada, Average grad salary: $42,240
Canada’s job market is less resilient than its neighbours in America. The job market is slowing ever so slightly, with a lot of Canadians choosing to stay in their current positions. Interest rate hikes are also a contributing factor, leading to an overall decline in new jobs that is impacting graduates.
So what can UK students expect to earn on graduation?
The average advertised UK graduate job salary is £25,000. This is comparable to most other Western countries, Germany and Canada in particular. Graduates in Germany will earn just less than £24,000 based on current conversion rates, while graduates in Canada will earn around £25,500. French and American graduates will earn more, £28,000 and £32,500 respectively, while graduates in Poland, South Africa, and India will earn substantially less.
| Country | Advertised grad vacancies, August 2022 | Advertised grad vacancies, August 2023 | YoY change, August 2023 |
|---|---|---|---|
| Singapore | 12,162 | 25,806 | +112.2% |
| India | 20,513 | 38,044 | +85.5% |
| South Africa | 10,558 | 14,936 | +41.5% |
| US | 380,712 | 491,354 | +29.1% |
| Australia | 8,739 | 8,589 | -1.7% |
| Canada | 20,393 | 17,453 | -14.4% |
| Germany | 30,897 | 23,467 | -24.0% |
| France | 36,388 | 27,548 | -24.3% |
| Poland | 4,525 | 3,337 | -26.3% |
| UK | 35,929 | 24,835 | -30.9% |
Taking a step back to look at the broader global picture when it comes to graduate job opportunities and remuneration shows that the UK is certainly not alone when it comes to falling graduate opportunities. However, it is the UK that has seen the most significant decrease suggesting there could be even higher unemployment rates for graduates on the horizon.
For students who are facing a competitive job market, alternatives such as entry-level jobs and paid internships could be the best way into employment.
Read more: Top well-paid jobs with least competition