27 October 2026
Graduate jobs stabilise despite AI disruption
The Institute of Student Employers’ Student Recruitment Report 2026 shows a stabilising graduate jobs market, though AI is disrupting recruitment processes.
After an 8% decline in graduate jobs in 2024-25, recruitment increase by 4% in 2025-26 and is forecast to grow by 7% in 2026-27. 45% of employers increased their graduate intake, 15% stayed the same and 40% reduced numbers.
Competition for graduate jobs is still high, with a record 141 applications per graduate vacancy and 96 per apprenticeship. This pressure is leading to an increase in misuse of AI by applicants during the recruitment process, with 92% of employers seeing potential or actual ‘misconduct in assessment and selection processes’.
The most common types of misconduct were for use of AI during interviews and for online assessments. The report found that employers are increasingly having to provide guidance on the acceptable use of AI, withy 82% of employers providing guidance.
Supporting the findings of the Milburn interim report on NEETs, the ISE report found that 62% of employers reported graduates applying for school or college leaver positions, putting added pressure on non—graduates.
The report explores employer use of AI as well as providing tips to graduates on using AI in the recruitment process.
Read more about the ISE Student Recruitment Report 2026.
After an 8% decline in graduate jobs in 2024-25, recruitment increase by 4% in 2025-26 and is forecast to grow by 7% in 2026-27. 45% of employers increased their graduate intake, 15% stayed the same and 40% reduced numbers.
Competition for graduate jobs is still high, with a record 141 applications per graduate vacancy and 96 per apprenticeship. This pressure is leading to an increase in misuse of AI by applicants during the recruitment process, with 92% of employers seeing potential or actual ‘misconduct in assessment and selection processes’.
The most common types of misconduct were for use of AI during interviews and for online assessments. The report found that employers are increasingly having to provide guidance on the acceptable use of AI, withy 82% of employers providing guidance.
Supporting the findings of the Milburn interim report on NEETs, the ISE report found that 62% of employers reported graduates applying for school or college leaver positions, putting added pressure on non—graduates.
The report explores employer use of AI as well as providing tips to graduates on using AI in the recruitment process.
Read more about the ISE Student Recruitment Report 2026.
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