Labour Government Triggers Collapse of Graduate Jobs Leaving Thousands of Young People Struggling to Find Work Across the UK

The dream of stepping straight from university into a stable graduate job is fading fast.

Recent data has revealed that opportunities designed specifically for fresh graduates have collapsed to levels not seen in nearly a decade, sparking fears that an entire generation could face a lifetime of job insecurity.

According to job site Adzuna, the number of graduate roles advertised last month fell below 10,000 for the first time since the platform started tracking in 2016—a staggering 45% drop from just a year ago.

For students and recent graduates, this is more than just disappointing; it’s a warning that entering the workforce is becoming significantly tougher.

Labour Policies Under Fire for Youth Unemployment Surge

The decline comes amid a wider rise in youth unemployment.

Official statistics show that 16.1% of 16- to 24-year-olds are now out of work, the highest level in 11 years.

That translates to 739,000 young people eager to work but unable to find opportunities.

Critics blame the Labour government for making it more expensive for businesses to hire young staff.

Shadow Chancellor Sir Mel Stride argued that Labour’s policies—including higher national insurance contributions and sweeping new employment regulations—are “crushing opportunities at the very start of working life.”

These measures, combined with minimum wage increases for younger workers, have allegedly made it financially risky for employers to take on fresh talent.

Experts Warn of a ‘Lost Generation’

Alan Milburn, a former Cabinet minister leading a government review of NEETs (young people not in education, employment, or training), described the situation as a downward spiral.

“Huge numbers of youngsters are trapped in a world of benefits,” Milburn said.

“They face poor health, poor education, and diminishing prospects.”

This isn’t just about statistics. For many young people, the lack of early career opportunities could have long-term consequences, from delayed homeownership to reduced lifetime earnings.

Overall Job Market Tightens Amid Automation and Inflation Pressures

It’s not just graduate jobs that are shrinking.

Adzuna reported that overall job vacancies last month totaled 694,940—a 16% drop from the previous year and the first time numbers fell below 700,000 since the peak of the Covid-19 pandemic in January 2021.

Competition is fierce, with 2.4 jobseekers vying for every vacancy.

Recruitment experts argue that government policies have played a major role.

Shazia Ejaz, director of campaigns at the Recruitment & Employment Confederation, noted that rising costs for employers are discouraging hiring, particularly for young or inexperienced candidates.

Minimum Wage Hikes Price Young Workers Out

One of the most contentious issues has been minimum wage reforms.

The wage for 18- to 20-year-olds rose from £8.60 to £10 in April last year and is set to increase further.

Economists warn that while well-intentioned, these increases risk pricing entry-level workers out of the market.

Peter Dixon of the National Institute of Economic and Social Research said younger workers are “being priced out,” while Andy King, formerly of the Office for Budget Responsibility, described the crisis as “self-inflicted.”

What’s Next?

The outlook for young jobseekers remains uncertain.

Policymakers face tough choices: either adjust employment policies to encourage businesses to hire or risk seeing a generation locked into long-term unemployment.

Labour’s approach to balancing wages, taxation, and employment regulations will be under scrutiny, with businesses and advocacy groups calling for measures that make hiring graduates financially viable again.

Meanwhile, graduates may increasingly need to consider non-traditional paths, including apprenticeships, gig economy work, or overseas opportunities, to gain their first career foothold.

Summary

Graduate job opportunities in the UK have fallen to record lows, with fewer than 10,000 advertised last month, triggering warnings of a “graduate jobs apocalypse.”

Youth unemployment has risen to 16.1%, the highest in 11 years, as Labour policies—higher national insurance, minimum wage increases, and new employment rules—make hiring young workers riskier and more expensive.

Experts and politicians warn of a lost generation of young people trapped in benefits, facing fierce competition for a shrinking number of roles.

The overall job market is tight, with just under 700,000 vacancies, and economists highlight that many young workers are being priced out of the labor market.

Urgent policy adjustments may be needed to prevent long-term consequences for an entire generation.