BLOG SERIES: Graduate Labour Market Trends

ARU have a dedicated Employability Service who not only add value to the student experience by providing guidance on all aspects of careers, employability and job searching, we also offer expert advice to the business community.

In a series of blogs we will deliver essential assistance to anyone attempting to navigate the student or graduate recruitment landscape, build a talent pipeline, raise brand awareness, close skills gaps or upskill your workforce.

The fourth instalment in the series will focus on:

GRADUATE LABOUR MARKET TRENDS

Pay rates

As a result of rising prices, so too has the living wage increased putting even greater pressure on employer finances – in March 2023 the government announced ‘Largest ever cash increase in the National Living Wage to boost pay for millions’ at up to 10.9% on previous rates.  In October 2023 Real Living Wage increased to £12.00ph from the previous £10.90ph – a rise of 9%.  In April 2024 it is expected that the National Living Wage will increase to £11.44ph from the current £10.42ph – also a rise of 9%.

Small businesses especially are finding it increasingly difficult to manage rising staff costs among their other ever-growing overheads and we have witnessed the struggle to maintain current workforce levels let alone consider growth in this area.

Average salaries 

In 2023 the average paid industrial placement role was £20,558* and this number can be a lot higher in demand areas such as STEM. 

The average graduate salary in 2023 was £25,856** per annum: 

Average graduate salary by sector, 2023** 

Market and candidate trends 

Since the disruption of Covid, there has been a noticeable change in candidate behaviour and vacancy trends.  We saw a surplus of candidates flooding the market due to Covid related redundancies with not enough jobs to offer them.  This has since developed into an overwhelming demand from employers for digital marketing skills which remains to present day as businesses continue to prioritise their online profile.  Most recently we have seen intense competition for candidates where they have a selection of job offers to choose from and therefore, are disappointing multiple potential employers which has made it difficult to fill vacancies.

The cost-of-living crisis has also had an effect on candidate availability as people are forced to work more in order to pay for the rising price of goods and services.  The hospitality industry in particular was incredibly difficult to source candidates for as we returned to the new norm after the global pandemic.  Candidate demand for these vacancies has since recovered and even surpassed previous numbers.

Remote working is still particularly popular with students as it enables them to undertake work flexibly to fit around their studies.  With regards to ARU students in particular, if a vacancy is fully remote or city central based (Chelmsford, Cambridge or Peterborough – close to our main campuses) it will receive a much higher volume of applications than one which is based in a location which requires travel by car or public transport.  Hybrid working could be seen as the middle ground here but even if being the office is only a requirement for one day a week, it’s always important to understand where your candidates are travelling to the office from and how they will commute.  Many people will have the best of intentions to make a gruelling commute but this often doesn’t result in worker longevity – a healthy work-life balance is an important balance to strike and you as the employer need to be aware of this on behalf of potential recruits to save you from expensive hiring mistakes.  Temp to perm recruitment is a good option in this instance as it gives employers the opportunity to have a ‘long interview’ with far less commitment than recruiting someone straight to a permanent contract.

If you’d like to learn more about the temp to perm recruitment services we offer, please get it touch with us at [email protected].

Look out for our next instalment in this blog series which will focus on building strong talent pipelines.

Sources:

*RateMyPlacement.com

**GraduateJobs.com