Graduate Market Outlook 2021
As students prepare to finish their exams, following an educational experience unlike any other due to global events of the last twelve months, what lies ahead in 2021 and beyond?
As much as we all try to focus on the positives, it is disingenuous to pretend that the graduate job market is thriving. The fact is, it’s in an extremely challenging environment out there. The class of 2020 are still reeling from one of the worst drops in graduate recruitment numbers since the financial crisis of 2008. Highfliers reported the number of graduates recruited by the Times Top 100 Graduate Employers was 15% lower in 2020 than in 2019. Thirteen out of the fifteen most popular sectors for students have reduced their intake, including accounting & professional services firms, engineering & industrial companies, and public sector employers. These figures don’t even cover the other thousands of smaller businesses that take on graduates every year but have significantly reduced their new hire intake through financial necessity.
Do not be downcast, though – there is light at the end of the tunnel, and for once it is not an oncoming train. The latest figures show that there is a predicted 2.5% increase in graduate vacancies for 2021. This may yet climb even higher, depending on the continued success of the vaccine rollout and market sentiment. What’s more, there is precedent for such recovery.
After the financial crisis, graduate vacancies bounced back with an increase of 12.6% in 2010. There is nothing to suggest that the post-coronavirus market will not post similar results, especially now that fears of a global economic depression have been quelled. As the year progresses, we can be confident of increasingly positive conditions for graduates to find jobs.
The consulting, consumer goods, retail and investment banking sectors are all planning significant increases in their hiring practices. The public sector will also offer more employment opportunities, set to become the biggest numerical employers of graduates in 2021. Chemicals, pharmaceuticals and law will all continue to hire graduates throughout 2021.
Again though, let’s be realistic – some sectors have taken a substantial hit and will require a little longer to make a full recovery. Oil and energy, aviation and banking & finance are planning to reduce graduate recruitment in 2021. This means that some tough decisions may need to be made about future career plans – especially with the sheer volume of competition set to vie for available roles.
Compared to 2020, graduate job applications in 2021 have increased by 41%. This is the largest-ever annual increase in applicants recorded by the country’s leading graduate employers. More students are graduating in 2021 than ever before – and they are also competing with the class of 2020 that missed out on their cycle.
Hiring numbers may be down, but they are not out. There are still thousands of graduate jobs available in most sectors and there should be new opportunities appearing all the time. The worse thing students can do is to put too much pressure on themselves and abandon hope and lose motivation. Our one key piece of advice is to persevere and think creatively. The best opportunities might not be in the place you expected them. Success doesn't come easy, it takes everything you've got and more. But in the end it's worth it all.
