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The graduate job market

Understand what defines the graduate labour market and how to research current trends.

We describe the current employment landscape, especially how it relates to you as a graduate, as the ‘graduate labour market’. Understanding the graduate labour market can help you to identify key sectors and relevant employers but also appreciate and predict how political, economic, social and technological factors can impact the job market and opportunities available to you as a graduate.

"Graduate labour market information refers to the current economic and employment landscape as it relates to graduates. Typically, it includes the latest information on factors such as graduate destinations, average graduate starting salaries and trends in graduate recruitment patterns - as well as anything that may have an impact on these factors (for example, the effect of Brexit on graduate recruitment practices, technological change, or changes in government policy)."
Smith, M-S and Greaves, L. (2023) 'Labour market information: a user guide'

The advice on this page refers specifically to the graduate labour market in the UK, but you can use the Working abroad section on Prospects to explore the job markets of other countries around the world. Current Cardiff University students can also access GoinGlobal for comprehensive guides for over 190 countries.

Understanding the graduate labour market

As a graduate, you are in high demand! Employers value the skills, knowledge and attributes that you have developed through furthering your education and getting involved in activities and experiences that will help you develop the key skills that they are looking for.

Whether you are a first year student considering your future options, or a graduate currently looking for a role, it’s important to understand what key elements, trends and patterns can influence the options and prospects you have.

Below are some of the key characteristics of the graduate labour market:

  • Flexible – your degree subject doesn’t define the options you have as many graduate jobs and schemes are open to students with any degree discipline. Whilst your subject knowledge will always be important, employers are increasingly interested in the skills, attributes and experiences you have gained and how your personality and attitude will fit into the ethos and culture of their organisation. Look at the job profiles on the Prospects website and specifically the ‘Qualifications’ section, which indicates if a specific degree is necessary for the role.
  • Wide-ranging – graduate roles typically exist in all sectors and industries and even for roles where having a degree isn’t essential, it may well help you to stand above the competition
  • Resilient – whilst the graduate job market is affected by external social, economic and political factors just like any other job market, it tends to be more resilient and less badly impacted due to the high value employers place on graduates. This was evidenced by the coronavirus pandemic, after which the graduate labour market recovered relatively quickly as employers continuing to prioritise the need to invest in graduate talent
  • Evolving and dynamic – much like the wider job market, the graduate job market changes in response to wider political, social and technological factors. A key recent change is that of technological advancement and the growth of artificial intelligence. This has changed the nature of entry-level roles in some industries, particularly where routine tasks can be automated, and influenced the nature of skills required to work alongside technological growth, placing more emphasis on emotional intelligence and technological skills. The World Economic Forum’s Future of Jobs Report 2023 highlights some of the key influences which will impact the labour market over the next few years, including the rise of AI and climate change
  • Competitive – the graduate labour market is a very competitive place. According to the Higher Education Statistics Agency, around 570,000 students entered the graduate labour market in 2023, with competition for graduate jobs increasing. The Institute of Student Employers (ISE) suggest that graduate applications per vacancy increased throughout 2023, up by 38%, with an average of 86 applications per vacancy

Entering a fluid and flexible job market means you need to develop skills that will help you navigate your future career, especially in times of change and uncertainty – we call these career management skills and you can read more about these in our advice on managing your career. Key to your development of career management skills and ability to withstand changes in the graduate labour market is the adoption of a ‘growth mindset‘. Having a growth mindset means being willing to develop new skills, learning from situations that don’t go to plan and taking on new challenges.

Our advice on commercial awareness can also help you keep up with industry and sector news.

How to research the graduate job market

There are lots of useful resources you can use to understand what is happening in the graduate job market:

Further resources

Use the below resources to explore this topic further: