"The culprit? AI is already doing the entry-level work graduates used to perform like routine coding, data analysis, and basic digital tasks. Companies still need tech talent, but they're hiring experienced workers instead of training newcomers. According to overall figures from ISE, graduate hiring has fallen by 8 percent year-on-year - the first time graduate jobs have fallen since the 12 percent decline during the pandemic in 2020. Yet it is the tech and pharma business sectors that are hardest hit."
"Stephen Isherwood, ISE joint chief executive, said AI was already displacing young professionals as some commentators had feared. "It is a tough market for students and young people in general. There is not much churn in the labor market and young people are suffering," he told the Financial Times. Tech still dominates graduate recruitment in terms of the roles organizations are looking to fill. IT, digital, and AI positions were the most sought-after among recruiters,"
AI is replacing entry-level tech tasks such as routine coding, data analysis, and basic digital work, driving steep cuts to graduate roles in the UK tech sector. ISE figures show graduate hiring in tech dropped 46 percent in the past year with a projected further 53 percent decline, and overall graduate hiring fell 8 percent year-on-year—the first fall since 2020. Employers still seek IT, digital, and AI skills, with 46 percent of organizations looking for those roles, but they prefer experienced hires over training graduates. Over half of employers use automated testing systems, AI usage in recruitment remains limited, AI appears in gamified assessments at 15 percent adoption, and 79 percent of employers are redesigning processes to guard against applicants using AI.
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