Graduate hiring fell 8% year-on-year, data from Institute of Student Employers shows, which is the first time graduate hiring has fallen since the 2020 pandemic, which saw it fall 12% year-on-year.

While tech recruitment itself saw a decrease, the sector still leads when it comes to open roles and skills-seeking.

Recruiters are looking to fill AI, IT, and digital positions, with 46% of organisations in the UK seeking employees with these skills.

While AI skills may be sought after, it is also being blamed as the main barrier for tech graduates to enter the workforce. Entry-level positions are more often being given to AI bots rather than recent graduates, with more tech firms seeking experience.

Junior roles are being replaced to partially filled by AI, as bots perform menial tech tasks and have basic digital skills like baseline coding and data analysis.

However, the research shows that AI is actually not playing a big role when it comes to recruitment.

ISE’s survey revealed that AI is used sparingly when it comes to employee assessments, though more than half of employers use automated systems to manage employee recruitment tests.

As far as AI adoption within recruitment, employers mostly turned to the emerging tech for gamification of tests (15%), though use is likely to increase as more prospective employees adopt the tech.

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About four in five (79%) of employers did say they were currently revamping their recruitment process in response to an uptick in applicants using AI, with only 15% of employers saying they have never identified or even suspected cheating from candidates.

Graduates appear to be caught in the middle of AI’s workforce transformation. As more and more companies cut roles and layoff workers in their AI adoption schemes, hiring junior talent is nearly freezing over as employers seek experience.

However, this change could cost employers in the future as mid-level talent shrinks across the board, and many graduates may be forced to turn away from tech, which will only decrease their skillset in an ever-evolving industry.