This year could become a graduate abyss for the UK job market if AI skill shortages are not tackled, writes Rod Flavell

Rising job uncertainty and a generation of graduates struggling to find work could turn 2026 into the year of the graduate abyss if no action is taken.

The UK unemployment rate has climbed to 5.1 per cent, its highest level since early 2021, according to the Office for National Statistics (ONS), with young people bearing the brunt. At FDM Group, we’ve seen firsthand how far graduates have previously gone to enter the job market, with some submitting hundreds of applications with no response.

The current graduate labour market is significantly different to previous years, as we’re seeing greater client demand for mid to senior resources in comparison to entry-level roles. This changing demand has had the biggest impact on recent grads who are feeling the pressure more than........

© City A.M.