Employers cut student work experience roles as demand rises

Student interest in internships and work placements rose steeply last year – but employers have cut back on hiring for these sorts of roles, according to the largest survey of its kind in the UK.

Applications for university-level internships soared 27 per cent in 2025-26, the latest edition of the Institute of Student Employers (ISE) annual Student Recruitment Survey showed.

The volume of those applying for undergraduate placements also increased, climbing 15 per cent.

But there was an 8 per cent reduction in internship and placement hiring among the employers surveyed by the ISE.

The scarcity of student work experience comes at a time when many universities are doubling down on their commitment to producing employable graduates.

In May, vice-chancellor Duncan Ivison announced plans to ensure that all undergraduates at the University of Manchester take part in some form of work placement over the course of their degrees.

Last month, meanwhile, Universities UK unveiled its “Future Jobs Roadmap”, which declared that “all undergraduates [should] have access to meaningful work-based learning by 2035, with a milestone of reaching 50 per cent by 2030”.

But the ISE evidence calls into question whether or not there will be enough roles available for employers to answer this demand.

The largest survey of its kind in the UK, the research analyses data from 155 student employers, covering more than 1.7 million applications and 31,577 hires and work experience placements during the 2025-26 recruitment cycle.

More positively, despite concerns about the dipping employment rate for graduates, the survey suggests hiring is “showing signs of stabilisation”.

This summer, the Higher Education Statistics Agency graduate outcomes data revealed a one percentage point increase in unemployment among university leavers.

But ISE’s analysis finds there could be hope on the horizon, with graduate hiring growing 4 per cent overall in 2025-26. This follows an 8 per cent decline in 2024-25.

In addition, employers appear happy with the calibre of new recruits emerging from universities.

Overall, 94 per cent of employers told the ISE survey that they were able to secure the quality of graduate hires they needed “often or almost always”, with hirers in the legal domain reporting the highest level of confidence, followed by digital and IT-related employers.

The findings represent a much-needed boost of confidence in the value of obtaining a degree, at a time when many are questioning the qualification’s continued relevance.

Polling released ahead of last year’s A-level results day found that two in five school-leavers believed they could have a good career without a degree, while politicians have voiced scepticism about the “economic return” of higher education.

Nonetheless, ISE’s report stresses that the latest increase in hiring is concentrated among a “small number of large employers”, masking what remains an “uneven” picture.

Competition for roles reached 141 applications per graduate position, with those in London specifically reaching 172 per vacancy.

Other trends covered by the survey include the role of artificial intelligence in hiring procedures such as interviews and assessments.

The overwhelming bulk (92 per cent) of employers suspected or confirmed student AI use in assessment and selection processes, compared with 85 per cent the year prior.

Stephen Isherwood, joint chief executive of the ISE, said the findings present an “early career labour market that shows some signs of recovery but remains challenging”.

“If work experience opportunities are to be expanded as the government wishes, employers, education providers and policymakers must work together to ensure that opportunities are accessible, meaningful and aligned with future workforce needs,” Isherwood writes in his foreword to the survey.

He adds: “Simplistic debates, often based on misleading information about university versus apprenticeships and humans versus AI fail to capture the reality facing employers and young people.”

georgia.luckhurst@timeshighereducation.com