Cooling jobs market for university graduates

Employers appear to have cut recruitment of university graduates and apprentices over the past year, a new analysis shows.

University graduates might find it tougher to land their first job, based on recruitment trends by Indeed. Photo istock.

A cooling jobs market for graduates and apprentices is revealed in new recruitment data.

The employment website Indeed has detected a new-year slump in graduate hiring, with job postings down 16 per cent in the first three months of 2025, compared to the same time last year.

Graduate job postings last year were 24 per cent lower than in 2023.

“The graduate market has clearly cooled,’’ Indeed’s senior economist Callam Pickering said.

“While opportunities remain well above pre-pandemic levels, the market has clearly shifted, and recent graduates now face a more challenging recruitment environment than in prior years.

“Geopolitical and economic uncertainty may also weigh on graduate recruitment over the remainder of this year, impacting Australian employers’ confidence and ability to plan ahead.’’

Indeed’s analysis shows engineering is the most common field for graduate job advertisements.

It concedes that much graduate recruitment does not occur online, with in-person placements a common pathway for occupations such as healthcare.

However, Indeed’s data reflects a broader drop in online job advertisements this year.

Indeed senior economist Callam Pickering. Picture: Supplied

Jobs and Skills Australia data shows the number of online job ads fell 17.3 per cent over the year to March. The number of advertised jobs requiring a university degree fell 17.9 per cent, compared to a 14.8 per cent fall in the number of jobs needing a high school or Certificate 1 qualification.

Indeed’s analysis shows entry-level roles for apprentices and trainees have fallen to pre-pandemic levels, after rising sharply in 2022 and 2023. By the end of March, job postings mentioning apprenticeships or traineeships in the job title were tracking 23 per cent below the 2024 average.

“Australia’s red-hot job market for apprentices cooled considerably in 2024 and early signs suggest that trend will continue in 2025,’’ Mr Pickering said. “Unfortunately, Australia’s vocational education system is much smaller than it used to be. In the past four years, the number of student withdrawals or cancellations exceeded completions – a previously uncommon occurrence.’’

The federal government will pay construction apprentices a $10,000 bonus from July this year.

Apprentice and trainee commencements plunged 17.4 per cent in the 12 months to September 2024, based on the latest statistics from the National Centre for Vocational Education Research.

Completion rates rose 7.1 per cent, driven by newly minted tradies in the construction and automotive industries.