Graduate job market trends in 2024

The graduate job market that opened in September 2023 started well. Post-pandemic recovery appeared to be tentatively underway and graduate employers have set up stalls in the market and rolled out the vacancies. In Autumn 2023 the Institute of Student Employers (ISE) surveyed its members – typically the largest employers with graduate programmes – and revealed that graduate recruitment in 2023 surpassed pre-pandemic levels, and increased by more than 20% on 2022. The same survey expected a 6% increase in student hires for the coming year (2024).

But since then the UK has been hit by economic headwinds: spiralling inflation; forecasts of a recession; what the government has dubbed a cost-of-living crisis; supply chain issues; a seemingly ever-increasing number of workers’ strikes over pay and conditions; dwindling international relations; and energy shortages. Things had started to get better, but there are problems for individuals and businesses alike.

If you’re concerned about how such issues might impact you, why not check out our article on job hunting during a recession or what to do if you’re struggling to find a job after graduation .

So, what is going to happen to the graduate job market in 2024? We have looked through the latest statistics to identify key trends to inform your career thinking.

Will I be able to get a job in 2024? | How much will graduate jobs pay in 2024? | What sectors will be hiring the most graduates in 2024? | What do you need to get a graduate job in 2024?

The caveat is that this is predictive, not prescriptive. Look at the situation in relation to your personal circumstances and remember that if we’ve learned anything from the last couple of years, it’s that anything can change at any time in relation to the economy, employers and the government.

Will I be able to get a job in 2024?

Employers are still hiring. To give you an idea, there are 1,500 vacancies being advertised on targetjobs at the time of writing. This number is double what it was at the end of the last pandemic lockdown. Be aware, too, that some professions or specialisms tend to do better in uncertain economic times than in more stable ones. For example, accountancy and law may have countercyclical work in the sense that companies raise more disputes in a recession to try to reclaim funds and an increase in liquidations or administrations can see more work for accountants.

However, in uncertain times you usually face stiffer competition for roles: the ISE reported that in 2023, among its members, the average organisation received 62 applications for each vacancy – and this was 5% down on the previous year, reflecting what seemed to be the start of a return to normal following the turmoil of the pandemic.

What does this mean for my job-hunting chances?

Keep applying for jobs. While employers could withdraw an offer if faced with a crisis – some employers did so at the start of the coronavirus pandemic – many are reluctant to weather the reputational damage that brings and do so only as a last resort. It is much easier for them to freeze future hiring than to rescind current job offers and so ‘locking in’ an offer early will put you in good stead. If you need more information, check out our article on job offers, how to accept them and what happens when they’re withdrawn .

Make sure, too, to submit high-quality applications. You’ll need to beef up your applications by tailoring them to the employer. You can find out more about this later on in this article.

How much will graduate jobs pay in 2024?

A recent Office for National Statistics (ONS) flash estimate for October 2023 put the median monthly pay for the UK at around £2,131 (or £25,572 per year). This isn’t a useable estimate of how much you’re likely to earn in a graduate role because statistics such as this one will vary according to region, age and a host of other factors. However, it does serve as a useful benchmark when compared against expected and average salaries for different sectors that tend to hire graduates.

The ISE survey suggests the average salary for graduates sits at £30,921, with average salaries for accounting (£32,316) and law (£42,810) outstripping that. Engineering salaries for graduates fall somewhat short at an average of £28,667, but this may be due to the various disciplines of engineering and qualification status (chartered engineers will likely earn more for example) as well as competition with apprenticeships (extant in accounting, but still very much in their infancy for the legal sector). The variation may also be accounted for by location – while much of the high-flying, high-paying legal sector operates out of London with its equally high-flying living costs, engineering employers will be based around the UK and as such will pay less relative to the hiring area and cost of living.

It is worth noting that the ISE member firms are likely to be the biggest in their industries and will therefore pay more than smaller or mid-market firms. That said, there is a reality that major law and consulting employers still offer in the region of £40,000–£70,000. Add to that the fact that salary increases in law can see your salary rise by more than 100% over the first three years, and the cost-of-living crisis should be weatherable (unless you are Sir Peter Bottomley that is).

What does this mean for you in terms of graduate salary in 2024?

The Bank of England rate of inflation is likely to have an impact on the real-world value of graduate salaries, as it currently stands at 11.1%, significantly above the target rate of 2%. However, there is some evidence that employers are taking action to support their staff through the cost-of-living crisis, with a third of employers looking at wage increases, flexible working arrangements, financial guidance, and improved benefits and bonuses.

The graduate job market has been performing well, and the average starting salary for graduates is around £30,921, with salaries in accounting and law higher than that. However, salaries in engineering are lower, which could be due to a variety of factors such as qualification status and employer location. It is worth noting that these average salaries are from the biggest employers in each industry and smaller or mid-market firms may offer lower salaries.

Overall, the job market is still hiring, and employers are reluctant to rescind job offers. Keep applying for jobs and submit high-quality applications tailored to the employer.

What does this mean for my future earnings?

The economic conditions in 2024 are uncertain, so it will be tough for everyone. It is important to research the average salary for the job you want and the cost of living in the region you want to work in. It may be worth factoring in a potential increase in living costs, at least for the first six months of the year, and having contingency plans in place.

If you are passionate about a particular sector, you may be willing to take the risk and find a way to make it work despite economic shifts. It is also worth considering opportunities for salary increases and career growth, such as additional qualifications, specialisations or promotions. Ultimately, it is important to be realistic about your future earnings, but also to remain ambitious and strive for career success.

What sectors will be hiring the most graduates in 2024?

There are currently approximately 1.25 million job vacancies in the UK, creating a chronic shortage of workers. Sectors hardest hit include social care, retail, hospitality, agriculture, and manufacturing. While many of the roles in these areas do not require a degree, graduates starting out in these roles may work their way up to management or be put on an employer's management training scheme.

In terms of graduate-level roles, engineering and science sectors have the most job vacancies, followed by accountancy, law, and consulting. Engineering is a sector that has had a shortage of workers for some time and this problem is expected to worsen, with the Institution of Engineering and Technology urging the government to tackle the engineering skills shortage.

There is also a growing demand for STEM workers related to the environment, as companies commit to reducing their carbon emissions. This means that anyone with STEM skills to reduce environmental impact is likely to be in demand. Overall, it is worth researching the industries that interest you and proactively seeking out opportunities.

Does that mean you need to retrain into science and engineering as a graduate in 2024?

Not necessarily. While certain specialized professions may require specific degrees, there are routes into IT and technical roles that are open to graduates of all disciplines. Data science, programming and IT skills are ubiquitous in modern businesses, and employers are looking for graduates with a broad range of skills to fill these roles.

If you are unsure about what to do next, you can check out resources such as the UK 300, which highlights the employers graduates find most appealing. Many of the top employers are tech companies like Amazon, Google, and Microsoft, along with engineering giants like Rolls-Royce, BAE Systems, and Jaguar Land Rover. Additionally, there is an increased demand for graduates with skills in the pharmaceutical industry as a result of the ongoing pandemic.

Ultimately, it is worth taking the time to research your options and find a career that interests you. While certain sectors may have more job vacancies than others, it is important to find a job that you are passionate about and that provides opportunities for career growth and development.

What if you don't want a job in tech/engineering as a graduate in 2024?

There are still many professions that have a shortage and are in need of new hires, including teaching, medicine, social care, social work, retail, logistics, and project management. However, it is worth noting that many of these professions have announced or are conducting strikes related to pay, benefits, and working conditions, so it is important to research these issues before making any career decisions.

The private sector also has its own set of problems, particularly with regards to upskilling and training for employees. Many employers have cut back on training for their staff during the pandemic, and the UK lags behind other advanced nations in terms of skill levels. This means that while you may get a job with good opportunities straight out of university, it may be harder to progress and become more employable and better-paid later on in your career.

Ultimately, it is important to find a career that you are passionate about and that provides opportunities for growth and development. Do your research, consider your options, and keep an open mind when job searching.

What does this mean for my career decision making as a graduate in 2024?

Ultimately, the decision of where to aim for a job should be based on your own skills, qualifications, passions, and living requirements. It is important to do your research, consider your options, and use resources such as our article on what to look for in a job to inform your decision making.

While high demand sectors do not necessarily guarantee a job, you can increase your chances by standing out from the competition. Many major employers still require a minimum of a 2.1 degree for vacancies, but there is a shift away from relying solely on grades towards cv-blind recruitment. Employers are increasingly looking at the other aspects of your CV, such as employability skills and how well you match their values and needs, so it is important to present yourself effectively.

While gamification, virtual reality, and other technological tools are not yet widely used in recruitment processes, there is an increasing use of AI in the process. However, this is likely to complement rather than replace the existing recruitment process.

To learn more about the most common recruitment methods, check out our article.

What does the increase in virtual recruitment mean for engaging with employers as a graduate in 2024?

While the pandemic has led to a significant increase in virtual recruitment, around half of employers still expect recruitment to be mainly virtual over the coming year. While virtual meetings may be seen as less personal and engaging, it also offers opportunities to apply for jobs further away or at bigger companies that may not have been accessible otherwise. Additionally, there may be more opportunities to attend virtual internships or insight days to gain experience for your CV.

It is important to approach virtual hiring with a positive mindset and make it work for you. Check out our articles on virtual careers fairs, interviews, assessment centres, and internships for tips on how to make the most of the virtual recruitment process. Additionally, while events like careers fairs and employer presentations may be available in person, virtual options are likely to remain an important part of the recruitment process in the short-term.

Good luck for 2024!

We hope this article has been helpful in providing an overview of recruitment trends for the coming year. If you need more help with career planning, Targetjobs has a dedicated section on career ideas that can provide you with further inspiration. Best of luck in your job search and future career endeavors!