The job market challenges faced by job seekers, including new college graduates, are not limited to the United States. In the United Kingdom, the number of internships relative to job openings has fallen sharply, reaching the lowest level in at least seven years. At the start of the year, there were around 4,000 internships advertised per million jobs, but this figure has now more than halved [6a1d4868]. The decline in internships is part of a wider slowdown in the jobs market, driven by high borrowing costs and wage pressures. Job adverts in the UK have fallen below their pre-pandemic level for the first time since the economy reopened in 2021. The hiring boom post-Covid has run out of steam, with available jobs concentrated in lower-paying sectors like retail, hospitality, and care [6a1d4868].
The impact of the jobs slowdown is particularly felt by graduates, as the cost of living crisis and rising rents have led more students and graduates to take jobs in bars, restaurants, and retail, where wages have risen significantly and hiring remains strong [6a1d4868]. The decline in internships is also observed in the United States, especially in white-collar sectors such as professional services, tech, and financial services. Many companies in the US have cut costs and reduced hiring for white-collar jobs, resulting in a cut-throat job market for US graduates as companies scrap internships. This has been attributed to companies recruiting too many new graduates in recent years, leading to a lack of available jobs for interns. Companies have also taken longer than usual to commit to attending college hiring fairs for summer internships and have relied more heavily on virtual interviews instead of in-person meetings with recruiters [ba41e76a]. Despite these challenges, economists believe that new graduates will eventually find jobs, especially in industries like healthcare, government, and leisure and hospitality that continue to add jobs each month [e4049001].