It has been a tortuous summer for thousands of recent graduates seeking their first ever professional role. If that’s you or someone you know, you’re not going crazy. There really are fewer jobs out there.
Tricky economic times have slimmed employer budgets, and the high number of applicants is exacerbated by a bulging backlog of last year's graduates.
But it’s not just that. AI also seems to be reshaping the landscape of employment opportunities, as companies across the world start to use AI for tasks previously completed by junior employees. Cost saving for companies, it spells bad news for graduates.
An intern at my PR company this summer, who was a skilled marketing graduate from a respected university, told me all about the tenacity of her job hunt. She’d sent out fully 140 applications in just a few months, and these yielded only the occasional interview. And no, I don’t think she was incompetent.
Such stories reflect market research showing that graduate roles are tough to secure. Accountancy firm PwC recently announced it will hire 200 fewer university grads this year, due to the influence of AI and the general economic picture. Others are also stalling on hiring. Trade outfit PR Week has reported that a significant minority of agencies have paused their recruiting indefinitely. Overall, the number of graduate openings have fallen for four years in a row according to reporting by The Sunday Times.
In the last couple of months, I have personally been sent more CVs by recruiters than in the past two years combined. The irony is that - despite graduates ostensibly fighting the coming wave of AI - many of these CVs are written with the help of AI. Any grad (or, indeed, non grad) you speak to will tell you so. My former intern told me that AI was helping her write her applications and providing invaluable insights for meetings with prospective employers.
So what’s a new graduate to do? The major challenge is figuring out how to stand out in this brave new working world. What skills do young employees actually need?
Pressure from students will likely push universities to provide the right kind of core AI skills, which they are currently not being taught
As the world gets to grips with AI, the honest answer is that it’s not fully clear yet. That said, three stand out. And they all include understanding AI. First is the ability to write effective prompts, which - before you scoff - is considerably more difficult than a Google search. Second is an understanding that not all AI models are equal; some excel at reasoning, while others are better for in-depth research. Get to know which ones are needed when, and how to use them. Third, graduates need to anticipate how AI skills can be deployed to meet changing employer needs, which requires flexibility and a forward-thinking mindset.
The brutal truth is that many who have just finished their undergraduate studies lack these skills. In part, this is because universities are still grappling with how to embrace AI. The potential for misuse and the need for transparency are significant concerns for many educators. Others are closely examining how both study tasks and performance assessments need to change. Perhaps what is lacking are core courses that equip undergraduates with the AI knowledge and skills they will need at the end of their studies, regardless of their subject.
Pressure from students will likely push universities to provide the right kind of core AI skills. This demand builds on the widespread use of tools for grammar and spelling, practical aids that are broadly embraced to help improve the quality of work. However, universities need to recognise the wide range of transversal skills that will be necessary for undergraduates seeking their first career roles.
Employers, like students, are also grappling with the challenges of AI. In the communications industry, early adoption has been strong. Many junior employees use AI regularly for research tasks, although there is considerable pressure to ensure additional fact checking. Many also use models to generate first drafts of social media posts, typically derived from pre-published materials. But there is also a reluctance to be fully transparent about when these tools are used. Such trends are pushing many agencies to create clear guardrails for AI usage that cover ethical use and detailed policies on when to use various models.
In many ways, students, universities and employers are all dealing with rapid change. Model upgrades appear with increasing frequency. Prompting has quickly become an entry-level skill. Understanding and working with AI agents and agentic tools is emerging as the next required area of expertise. On the horizon, perhaps only a couple of years away, is a likely shift from generative to general AI. Today’s AI may quickly become obsolete.
My organisation is one of many that has recently spent time rewriting its core job descriptions
But there is an emergent trend that may help new undergraduates find their feet. Employers are thinking long and hard about what roles are likely to be replaced, but they are also considering what new roles they will be creating. My organisation is one of many that has recently spent time rewriting its core job descriptions. At the heart of our thinking is a desire to discuss with interviewees how they will manage the tasks now being undertaken by AI. We need recruits who understand how to shape a research project, check and refine a report and add the human insight that an AI model might overlook.
For students, there is one final tip: ask any potential employer for a job description that reflects the changing nature of their AI-integrated roles. This will show you are ahead of the curve and ready for the future of work.
Kevin Read is CEO at Pembroke and Rye
