The slump marks the lowest monthly total since Adzuna began tracking graduate vacancies in 2016, and adds to evidence that employers are scaling back hiring plans across multiple sectors. The July figure compares with more than 15,000 vacancies recorded in July 2025, and comes as the UK economy continues to grapple with weak growth, high borrowing costs, and political uncertainty following the general election.

Adzuna’s data covers postings that explicitly require a degree or are aimed at recent graduates. The sharp decline has been attributed to a combination of factors, including a broader freeze in recruitment, rising automation in white-collar roles, and a shift in employer demand toward more experienced candidates. Smaller firms, in particular, have reduced their intake of trainees and entry-level hires as they face rising national insurance contributions and other costs.

The news will heighten anxiety among the roughly 400,000 students expected to graduate this year in England alone. Many already face average student debts exceeding £50,000, and the reduced job market threatens a longer period of underemployment or outright unemployment. Graduate salaries have also stagnated in real terms, with the median starting salary for advertised roles barely rising above £26,000.

The government has acknowledged the issue, with the Department for Education stating it is “working to create more high-skilled opportunities for young people” through apprenticeship reforms and local skills improvement plans. However, critics argue that the decline in vacancies has outpaced any policy response, and that the government’s focus on levelling up has not yet translated into more graduate-level jobs outside London and the South East.

Some industries have been hit harder than others. The professional services sector, a traditional destination for graduates, has seen a particularly steep contraction, along with finance and IT. Meanwhile, healthcare and education have maintained relatively stable vacancy levels, though these sectors face their own recruitment and retention challenges. The data does not break down vacancies by region or sector in detail, but Adzuna’s broader job market reports suggest opportunities are concentrated in the capital and a handful of large cities.

Employers, for their part, have cited concerns about the broader economic outlook as a reason for caution. Many are adopting a “wait and see” approach before committing to new graduate cohorts. Some business groups have also pointed to the impact of the government’s recent tax and regulatory changes, which they claim have made it more expensive to take on young workers without proven experience.

The UK is not alone in facing a graduate jobs squeeze. Similar trends have been observed in the United States and continental Europe, where a combination of technological disruption and economic slowdown has reduced demand for entry-level talent. However, the speed and depth of the decline in the UK is striking, and has prompted some economists to warn of a “lost generation” of graduates who may struggle to build careers.