Tech industry grad hiring crashes 46% as bots do junior work

Steven

Tech industry grad hiring crashes 46% as bots do junior work

Summary

The UK tech sector has slashed graduate hiring by 46% in the last year, with a further 53% drop projected, according to Institute of Student Employers (ISE) figures. AI is already taking over many entry-level tasks — routine coding, data analysis and basic digital work — so employers are favouring experienced hires over training new graduates. Overall graduate hiring across sectors is down 8% year-on-year, the first fall since the pandemic, with tech and pharma hardest hit.

Key Points

  • ISE reports a 46% fall in tech graduate hiring in the past year and predicts a 53% further drop.
  • Overall graduate vacancies are down 8% year-on-year — the first decline since 2020.
  • AI is displacing many entry-level tasks (routine coding, data prep, basic digital chores), reducing demand for junior hires.
  • Employers are hiring experienced staff instead of investing in graduate training, shrinking future talent pipelines.
  • AI use in recruitment is still limited: only around 15% use it in gamified assessments, though many employers (79%) are redesigning processes because of AI.
  • Major vendors (Salesforce, Workday, Microsoft and others) have cut roles and cited AI-driven changes, accelerating the trend.
  • The shift risks producing a shortage of mid-level professionals in the coming years as graduates miss out on first-job experience.

Content Summary

The article draws on ISE survey data and industry headlines to show a sharp fall in graduate hiring within UK tech. While tech roles remain the most in-demand category overall, organisations are filling positions with seasoned professionals rather than graduates because AI tools can now handle many routine junior tasks. The use of AI in recruitment itself is still modest, but employers are wary of candidates using AI to cheat and are reshaping assessment processes accordingly.

Wider company moves to cut roles and deploy AI — from vendors like Salesforce and Microsoft — are feeding into the same dynamic: short-term efficiency gains at the expense of building tomorrow’s workforce. The piece warns this creates a vicious cycle where lack of entry-level roles leads to fewer mid-level hires later on.

Context and Relevance

This story sits at the intersection of two big trends: rapid AI adoption and a tightening labour market. For organisations, it signals a trade-off between immediate productivity gains and long-term talent development. For graduates, universities and policymakers, it flags a growing barrier to career entry in tech that could reshape training, apprenticeships and recruitment strategies.

In industry terms, the story is important because it highlights how automation is already affecting workforce composition, not just job descriptions — and because it points to potential future skills shortages if the talent pipeline is not replenished.

Why should I read this?

Short version: if you hire, study, advise or are one of the many grads trying to get a first break in tech — this matters. It’s not doom porn, it’s a clear sign the entry-level market is shifting under your feet. Read it to know whether to rethink hiring, invest in retraining, or change how you position new talent for the next few years. We’ve read it so you don’t have to — but you should definitely care.

Source

Source: https://go.theregister.com/feed/www.theregister.com/2025/10/16/uk_tech_grad_jobs/