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IT & Tech News · 20 October 2026

Graduate Tech Jobs in 2026: Hiring Steadies, but AI Is Changing How Employers Recruit

The latest graduate recruitment figures show hiring has stopped falling, but applications are at record levels and employers are rethinking how they hire. Here is what it means.

Software engineers at work, for engineering jobs in East Anglia

If you read UK tech career forums, you will know the mood among graduates has been grim. Hundreds of applications, few interviews, and a nagging worry that AI and offshoring are eating the entry-level roles. The newest figures are a little more mixed than that, but they also show why graduate tech jobs feel so hard to land right now.

Graduate Tech Jobs: Hiring Has Stopped Falling

The Institute of Student Employers released its latest Student Recruitment Report in October 2026. It found graduate hiring rose by 4% in the 2025 to 2026 cycle, after an 8% fall the year before (HR Grapevine).

The survey covered 155 employers, who received more than 1.7 million applications and made 31,577 hires. That works out at more than 50 applications for every hire. No wonder it feels crowded.

Employers Are Rethinking How They Hire

The ISE also reported that 77% of employers are rethinking how they recruit, because of record application numbers and the misuse of AI in applications. When everyone can produce a polished cover letter in seconds, written applications tell employers less, so expect more online tests, video interviews and assessment centres.

Software developer at work, one of the most popular graduate tech jobs

Advertised Graduate Vacancies Are Still Low

Job advert data paints a tougher picture. Adzuna’s graduate vacancy index hit a series low in July 2026, with 2.14 jobseekers for every vacancy, up from 1.93 a year earlier (Magica). A government brief based on LinkedIn data also found software engineer hiring down 27% in April 2026.

The two sets of figures measure different things. ISE asks large graduate employers about hires, while Adzuna counts online adverts. Put together, they suggest big graduate schemes are holding steady, while the wider market for junior roles is still thin.

Is AI to Blame for Fewer Entry-Level Tech Jobs?

It is the question everyone asks. The honest answer is that nobody has proved it yet. The data shows junior hiring falling at the same time as AI tools are spreading, but the sources do not measure how much AI is responsible. Higher employment costs and general caution are also playing a part.

What is clear is that employers want graduates who can do more than routine tasks. Problem solving, communication and a willingness to learn new tools count for a lot.

What Graduates Can Do Now

  • Apply early to graduate schemes, as many fill well before the deadline
  • Prepare properly for online tests and coding assessments
  • Build one or two solid projects you can talk about in depth, rather than lots of small ones
  • Look beyond pure tech firms. Banks, retailers, the public sector and manufacturers all hire tech graduates
  • Write your own applications. Employers are getting better at spotting copy-and-paste AI answers

We have practical guides on coding tests and tech CVs on our IT blog. You can also check your CV with our free CV checker and browse roles on our IT jobs hub.

FAQs

Graduate Tech Jobs: Frequently Asked Questions

Are graduate tech jobs increasing in 2026?

ISE found graduate hiring rose by 4% in the 2025 to 2026 cycle after an 8% fall the year before, but advertised graduate vacancies remain low.

How competitive are graduate jobs in the UK?

Very. ISE employers received more than 1.7 million applications for 31,577 hires, and Adzuna reported 2.14 jobseekers per graduate vacancy in July 2026.

Is AI replacing entry-level tech jobs?

Junior hiring has fallen while AI tools have spread, but the data does not yet show how much AI is responsible. Costs and caution also play a part.

How are employers changing graduate recruitment?

ISE says 77% of employers are rethinking how they hire, with more testing and assessment because written applications are less reliable.

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