What’s happening in the graduate jobs market and how to stand out

The number of graduates hired by the big four consulting firms Deloitte, KPMG, EY and PwC slumped to a five-year low of around 2,500 in the past year. This represents a 45 per cent drop from a peak of almost 4,700 graduate hires in 2022. The 2022 peak followed a surge in graduate employment following the pandemic.

Traditionally, these firms have been seen as a bellwether for the graduate jobs market, with their hiring patterns often reflecting broader trends across professional services and corporate Australia. Recent data from Indeed suggests the slowdown is more widespread.  Graduate job postings fell by 23 per cent last year and are tracking a further 15 per cent decline this year.

So what’s driving this shift — and, in a more competitive market, how can graduates improve their chances of securing their first professional role?

What’s behind the trend?

According to the firms themselves, the decline in graduate hiring is largely the result of over-hiring in 2022 and 2023. This is combined with a slowdown in demand for advisory services. The Federal Government’s decision to reduce its reliance on external consultants in recent years has also been well reported. This has contributed to softer conditions across the sector.

Is AI the culprit?

Contrary to popular opinion, major consulting firms say the slowdown is not driven by the rise of artificial intelligence. Labour market experts broadly agree. They note that while some entry-level roles in the United States have been affected by AI adoption, there is little evidence of this occurring in Australia so far.

Jeff Borland is an economist at the University of Melbourne and one of the country’s leading labour market experts. He says employment trends in Australia typically lag those in the US.

“At the moment, it would be difficult to argue we are seeing any major effects of AI on the availability of entry-level jobs for graduates,” he told the Financial Review.

“But in the US they are seeing this type of effect, and because we’re likely behind the US in workplace adoption of AI, we can’t rule out that we may also see an impact in the future.”

Is it all bad news?

Despite the recent decline, it’s not all bad news for graduates. While the number of graduate positions has fallen over the past couple of years, it remains above pre-pandemic levels. Graduates also continue to fare better in the employment market than those without a university qualification.

Tips to succeed as a graduate

In a tighter graduate jobs market, employers are placing greater emphasis on human-based skills. These include teamwork, problem-solving, negotiation and compromise, as well as self-awareness, resilience and the ability to adapt to change. According to experts, the use of AI in the workplace has only increased the value of strong interpersonal and communication skills.
Graduates themselves also point to networking as a key factor in securing sought-after roles.

In this environment, how candidates present their skills and experience has never mattered more. Strong academic results and technical knowledge still count. However, employers are increasingly focused on how applicants demonstrate judgement, communication and real-world capability in their resumes and applications. Clearly articulating relevant examples and strengths is critical to aligning with what employers are actually assessing.

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