The State of the Job Market in 2025: A Guide for Graduates

The 2025 job market is proving to be the toughest for fresh graduates in years. Indeed claim that the rise of AI has created the worst environment for new job seekers since 2018, with graduate roles down 33% compared to the year before. The Guardian reports that, according to new research, AI could replace as many as 3 million low-skilled workers in a decade. 

However, this isn't just a simple AI problem. ChatGPT was first released in late November 2022, but data on monthly job vacancies from Statista suggests that the decline started in May 2022. The evidence therefore points to a broader economic problem rather than increasing automation. PwC points to “other market conditions” influencing the softening job market rather than the widespread adoption of AI models. They note that where AI is primarily having an impact is in the application process, making it much more crowded and confusing, and causing difficulties for recruiters to distinguish between real ability and AI-augmented applications.

For financial services, the data suggests that business and administrative degrees are still valued by employers, and their numbers closely follow the wider trends in the graduate job market. Figure 1, depicting a dashboard from Prospects, shows the breakdown of outcomes for recent graduates. It appears that despite much uncertainty over the potential of AI to be a graduate job-killer, careers such as accounting, tax, and investments are still widely in demand. Nevertheless, the fact remains that the job market is becoming more and more competitive.

Source: Prospects 

In such conditions, students are taking every opportunity to be more competitive. Many graduates are choosing to pursue further education in the form of a postgraduate degree to shift the odds in their favour. However, many employers favour transferrable skills and internship experience over further education. It is becoming increasingly clear that a degree by itself is simply not enough to find employment.

On the other hand, there are opportunities for growing industries for graduates who play their cards right. PwC found that demand for AI-related skills is rising (particularly in industries most exposed to automation), and vacancies in the health sector grew significantly more than others. This is further evidence that employers are increasingly favouring candidates who have built a wide variety of technical skills outside of what is typically taught within their degree.

Source: PwC 

For graduates navigating the 2025 job market, a proactive and flexible approach is essential. Nowadays, recruiters make use of AI-driven systems called Applicant Tracking Systems (ATS) to screen the huge number of CVs they receive. The system parses resumés and extracts key information, including the work experience and education of each candidate. By tailoring CVs to specific jobs, you can easily pass these automated checks. Focus on including relevant keywords from the job description in your CV, as well as maintain a simple structure and formatting to avoid confusing the ATS. The CV checker CareerSet, recommended by the University of Leeds careers service, provides ATS-friendly templates and can even review your CV and provide some helpful tips to refine it even further.

The evidence is clear: building real-world, transferable skills, whether through coursework, part-time jobs, volunteer work, or student projects, and demonstrating measurable impact wherever possible, is crucial to securing a graduate role. You should focus on cultivating both your technical and soft skills. You can enhance your visibility through a professional online presence, including LinkedIn profiles or portfolios, and target growth sectors such as healthcare, AI-related technology, and fintech. 

Many online courses or certifications relevant to your industry can be a good idea, as it shows real interest in your chosen sector, and is a good enough substitute for the lack of equally-competitive internships. Treat job applications as a learning process, refining your CV and interview approach with each rejection. Finally, networking still remains crucial: seek advice from alumni, attend career events, and connect with professionals in your field. By combining skill development, adaptability, visibility, and resilience, you can differentiate yourself and turn the challenges of 2025 into opportunities.