High employment rates are great for businesses, with them getting more qualified people for their roles, it makes it much harder for graduates to land a long-term career. It can lead to entry-level roles being reduced or automated, making it harder for new graduates to get into a career that best aligns with the course they’ve studied for the past few years.
In early 2026, UK graduate unemployment rose to 14%, which is the highest it’s been in 11 years (excluding the pandemic), despite relatively strong headline employment numbers. This proves that despite high employment rates being great for the economy, it has negatively impacted the career growth and potential of those who have just graduated from university.
This guide will tackle this interesting topic, as we dig deeper into why high employment rate is worse for graduates and what the solution to this could be. Continue reading to learn more.
Why High Employment Can Be Worse for Graduates
Less Entry-Level Roles
Junior-level tasks are now being eliminated in businesses, as they can be carried out by artificial intelligence and other technologies without the need to pay an employee. Many entry-level training roles were historically the first step for graduates, who may not have gained any relevant experience in the workforce. However, these opportunities are now being eliminated with AI taking up the last of the jobs that aren’t yet taken up from high employment rates. This has significantly reduced the need for new hires.
Higher Competition
Competition to get work for graduates is at a record high in 2026, despite a generally tight labour market for experienced workers. This creates a situation where employers are hiring, but the competition for specific graduate roles has intensified, which leads to fewer graduates being able to find full-time…
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Read Full Article by Darcy Fowler at thetotalentrepreneurs.com
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