ISE Joint-CEO, Stephen Isherwood reflects on 2024, 12 months in which the UK’s student recruitment market has faced a year of political, economic, and technological pressures.

A new government ushers in a new policy focus

The year began with a general election that promised changes in education and employment policy. ISE’s published manifesto urged the new government to focus on policies that would improve the development of early career talent, their skills, opportunities and career outcomes.

Three of our asks in particular have featured in plans for skills and education reform:

• Increase flexibility in the new Growth and Skills Levy to enable employers to recruit more school and college leavers onto apprenticeships and enhance skills training through shorter-form interventions.
• Improve funding for employability support for students, particularly disadvantaged students, ensuring they gain more access to work experience opportunities.
• Invest in structured, well-resourced careers services in schools and colleges.

While the government has set out positive policy intentions, such as hiring 1,000 new careers advisors and increasing access to work experience, ISE members tell us they remain cautious. Their key concerns include:

• The potential defunding of level-seven apprenticeships to prioritise level-two and level-three apprenticeships that employers may not need.
• A shift in accountability of Skills England compared to IFATE’s role, potentially increasing government control at the expense of employer influence.
• Continued uncertainty surrounding university funding, as tuition fee increases will be offset by rising national insurance costs.

The impact of AI in recruitment

Two-years ago AI started to disrupt and reshape the student recruitment landscape. While the majority of employers are not yet using AI extensively in their selection processes, students are leveraging AI tools to craft their job applications and complete assessment exercises. This, combined with a tight employment market, has led to record application volumes.

Students have always made multiple job applications and had to deal with rejection, but the challenge of managing these volumes has significantly increased this past year.

We estimate employers collectively send out over three million rejection messages annually – both the strain on resources and the negative impact on candidates is increasing.

Students target employers in campus protests

Student activism surged in 2024, addressing a diverse range of issues from global conflicts to climate change. Industries traditionally outside the protest spotlight, such as insurance, professional services, and technology, have become targets.

These protests can focus on a companies’ clients or business relationships as well as their core operations, which makes it harder for careers teams and employers to anticipate and mitigate risks.

Universities are places where students are encouraged to think and question issues so are balancing the need to protect free speech with the responsibility to ensure that events proceed safely.

For employers attending campus events, preparation is essential. Ensuring teams are briefed and ready to engage constructively can help navigate these complex scenarios.

Read more about what protests mean for employers on-campus.

International students face tougher visa challenges

Changes to UK immigration rules put in place by the previous government at the start of the year have significantly impacted international students. Although many employers remain committed to recruiting international talent, 18% have rescinded job offers due to visa regulation changes.

While the graduate visa provides a short-term solution, most ISE members transfer students to the skilled worker visa for long-term employment.

With the current administration showing no signs of reversing these policies, some employers now place restrictions on roles and locations that won’t meet the new salary requirements.

Read how visa changes impact how international students can work in the UK

A complex but still promising job market

Feedback from employer, service provider, and careers and employment team members suggested that resources are being closely managed.

Team budgets are under scrutiny and headcount freezes, or even reductions, are in place within many organisations. But while the student job market is undeniably tough, we are not in recession.

Economic pressures led to cautious growth in 2024 and employer commitment to hiring students stayed strong, with opportunities still available for those who are persistent and adaptable in their job search.

The economic outlook isn’t set to change for a while, and until there is growth in the economy, students are going to have to apply their job-hunting skills to greater effect in the jobs market.

We believe the future student jobs and career landscape is a positive one. As the pace of change in work quickens, the long-term impact of demographic changes and higher skills requirements mean that the UK will need to increase its collective investment in the development of students.

As 2024 concludes, ISE members will no doubt remain agile and forward-thinking.