Graduates were all sold the same dream: leave university, land a junior developer, analyst or cybersecurity job and begin building experience, but it doesn’t look like following through with that journey is as easy as it used to be.
Graduate hiring in the UK tech sector went down 46% over the past year as employers recruited fewer people into junior digital and coding jobs and this is according to The STEM Skills Outlook, produced by the Centre for Economics and Business Research and STEM workforce consultancy SThree.
The report calculates that a 2% drop in graduates from tech subjects would lower that contribution to £172 billion. That would leave a £14.5bn difference in economic output.
We recently spoke about a similar development in cybersecurity when the DSIT’s Cybersecurity Skills in the UK Labour Market 2025 report estimated that entry level candidates accounted for 17% of cybersecurity job postings in 2024 compared to 2022 when that share was 25%. The research also found that 63% of vacancies asked for candidates with between two and six years of experience.
What Is Happening To Entry Level Tech Work?
The Cebr and SThree report says graduates are finding it harder to enter the sector as ai automates or reshapes junior positions that traditionally helped people gain workplace experience.
That comes as employers recruit fewer newcomers… The Institute of Student Employers recently reported that graduate hiring in the UK tech sector went down 46% during the past year as employers reduced recruitment for junior digital and coding jobs.
Rakesh Patel, Managing Director UK and Rest of Europe at SThree, said, “If those entry-level routes narrow further, the UK risks deterring the next cohort of graduates needed to sustain tech growth over the next decade – and that comes at a huge cost to the economy.
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“The UK’s tech sector is already a major contributor to growth, which is why even a marginal weakening of the talent pipeline could cost the country billions.”
Patel also said, “Entry-level positions give graduates commercial experience that underpins long-term productivity and innovation. So as AI reshapes parts of that work, it’s increasingly important for employers and policymakers to strengthen the pathways from education into the workplace.”
Why Are Employers Asking For More Experience?
The cybersecurity labour market shows what many employers want from job applicants. According to the government commissioned research, there were an average of 2,698 cybersecurity job postings each month during 2024.
Most vacancies were for candidates who already had experience. Mid level workers accounted for 63% of postings, leaving fewer openings for people at the start of their careers.
That leaves graduates in a difficult situation where employers want workplace experience, but fewer jobs are available for people trying to gain it.
The STEM Skills Outlook says entry level jobs help graduates develop commercial knowledge and workplace skills that support productivity and innovation later in their careers.
What Could This Mean For The UK Economy?
Tech related industries currently contribute £122bn to the UK economy and support nearly 1.8 million tech related jobs, according to The STEM Skills Outlook.
Sam Miley, Head of Forecasting and Thought Leadership at Cebr, said, “Periods of technological transition often create temporary mismatches between labour market demand and workforce development. Computer Science remains one of the UK’s most popular degree subjects, but rising living costs, larger student debt burdens and growing scrutiny over graduate outcomes could weaken future demand for technology degrees over time.”
Miley added, “That matters because the UK’s wider growth ambitions are increasingly tied to high-productivity sectors such as AI, advanced tech and digital infrastructure, all of which depend on a steady supply of specialist talent. The STEM Skills Outlook shows how quickly long-term economic projections can shift when workforce trends begin to change.”
The report’s conclusion is that graduate recruitment is not only a question for universities and employers. It also relates to the future workforce that tech, AI and digital infrastructure projects will need in the years to come.
