Risks and opportunities

Chris Rea from Prospects said that while many graduates are steering away from certain careers due to AI, others are looking to new industries because of the opportunities the technology presents.

Jeremy Swan, from the Association of Graduate Careers Advisory Services, said technological change is putting pressure on graduates to look for jobs where they cannot easily be replaced by AI. He added: “I think it’s about re-framing people’s thinking, so that they can see there are opportunities out there that look slightly different than what they’re used to.” Mr Swan said AI has left many students and graduates feeling “really uncertain about where they stand”.

Figures from job search platform Adzuna show entry-level vacancies have dropped by 32 percent since Chat GPT launched in November 2022. Mr Swan added: “There’s a lot of uncertainty that’s come off the back of AI, people worrying how it’s going to affect their chosen career paths, and we would just say this is where decent career support matters more than ever.”

Jobs least exposed to AI:
Logging equipment operators
Motorboat operators
Orderlies
Floor sanders and finishers
Pile driver operators
Rail-track laying and maintenance equipment
Foundry moulders and coremakers
Water treatment plant and system operators
Bridge and lock tenders
Dredge operators

Jobs most exposed to AI:
Interpreters and translators
Historians
Passenger attendants
Sales representatives of services
Writers and authors
Customer service representatives
CNC tool programmers
Telephone operators
Ticket agents and travel clerks
Broadcast announcers and radio DJs

Hiring has fallen

LinkedIn data shows hiring in the UK fell by 6.7 percent in June compared to May, after a 3.9 percent rise the previous month. Official figures also revealed unemployment rose to a four-year high of 4.7 percent in the three months to May.

Bank of England Governor Andrew Bailey recently said bigger interest rate cuts may be needed if the jobs market slows further. City traders expect rates could be cut from 4.25 percent to 4 percent at Thursday’s Monetary Policy Committee meeting.

University leavers now face an increasingly tough labour market as employers cut back on graduate recruitment. Adzuna data shows graduate job listings plunged by nearly 23 percent in the year to April as rising taxes prompt businesses to scale back entry-level hiring.

Economic pressure

Meanwhile, increases to the national living wage mean many graduate schemes now only offer salaries in line with minimum wage, which stands at £12.21 per hour or £25,500 a year for full-time workers.

Major employer KPMG has cut its recruitment scheme, hiring just 942 graduates and school leavers last year compared with 1,399 in 2023. The company expects to hire around 1,000 this year.

With competition for entry-level positions fiercer than ever, many graduates are turning to AI for help with job applications. The Prospects survey found that 43 percent had used AI to edit or draft a cover letter, while 26 percent had used it for answering questions on application forms. However, Mr Swan believes students may be under-reporting their use of AI.

He said students should make sure they use “these tools in an ethical way”, even if AI can help get them started on CVs or cover letters.