Shock results, as graduate recruitment at the UK’s top employers falls

 

Brexit is being blamed for the first fall in graduate recruitment into Britain’s leading employers** for five years. What’s more, it’s revealed the biggest drop since 2009, with graduate recruitment being cut by 4.9% year-on-year (the results were all the more surprising as it had been expected to rise by 10% in 2017).

Those areas that were most affected were the accounting & professional services firms, banking & finance companies, and the City’s investment banks. Across the private sector as a whole, recruitment fell by an average of 10.3% in 2017.

The report is keen to point out that not all is doom and gloom, with employers having a more positive outlook for the year ahead, saying that it’s expected to recover by 3.6% in 2018.

Here are some other key findings from the report.

  • Graduate recruitment in 2017 was substantially lower than had been expected at the beginning of the 2016-2017 recruitment season, with graduate vacancy targets downgraded. twice during the year, amidst widespread uncertainty about the impact of Brexit.
  • Employers in eight out of thirteen key industries and employment areas hired fewer graduates in 2017 than the year before.
  • Private sector employers cut their graduate recruitment by an average of 10.3% in 2017, compared with their intake in 2016.
  • The biggest growth in vacancies is expected at public sector organisations, accounting & professional services firms and engineering & industrial companies, which together intend to recruit over 750 extra graduates in 2018.
  • Graduate starting salaries at the UK’s leading graduate employers are expected to remain unchanged for the fourth consecutive year in 2018, at a median starting salary of £30,000.
  • At least a sixth of places on the top graduate programmes now provide starting salaries of more than £40,000 and nine of the country’s best-known graduate employers are paying salaries in excess of £45,000 this year.
  • The most generous salaries in 2018 are those on offer from the investment banks (median of £47,000), law firms (median of £44,000), oil & energy companies (median of £35,000) and retailers (median of £35,000).
  • The highest published graduate starting salaries for 2018 include law firms White & Case (£46,000), Baker & McKenzie (£45,000), Herbert Smith Freehills (£44,000), consulting firm Newton (£45,000), and retailer Aldi (£44,000).
  • The number of work experience places available at the UK’s leading graduate employers is expected to increase by 0.8% in 2018, following a drop in work placements in 2017.
  • More than four-fifths of the country’s top graduate employers are offering paid work experience programmes for students and recent graduates during the 2017-2018 academic year, providing a total of 12,849 places.
  • Three-quarters of employers provide paid vacation internships for penultimate year students and three-fifths offer course placements for undergraduates (typically lasting 6-12 months as part of a university degree course).

Managing director of High Fliers Research, Martin Birchall had this to say, “It’s clear from our latest research that the uncertainty caused by Brexit has already hit the graduate job market. The country’s best-known employers hired almost 3,000 fewer graduates than expected in 2017 and recorded the biggest annual fall in graduate recruitment since the recession in 2008 and 2009. Although employers in a number of key industries and business sectors are hoping to increase their graduate recruitment again in 2018, the outlook of many recruiters remains cautious for the year ahead.”

*The Graduate Market 2018 is a study of graduate vacancies, starting salaries and undergraduate work experience programmes at the country’s one hundred leading employers.

** The employers included are the one hundred organisations that final year university students from the UK’s leading universities believe offer the best opportunities for new graduates.

Thursday, 18 January 2018

Share this article

Any questions? Any comments?

Your instant reactions to this article can be posted here. Use your own name or a nom de plume.

Be the first to make a comment...

Please log in to make a comment

Not registered? Click here.

Shock results, as graduate recruitment at the UK’s top employers falls