The United Kingdom’s job market is showing clear signs of stress, with rising unemployment and fewer job openings making it harder for graduates, particularly international students, to secure post-study employment.
As the unemployment rate reaches 4.6% between February and April 2025, the highest level since the summer of 2021, the outlook for graduates seeking jobs has become much more difficult.
Job Market Woes: Fewer Opportunities for Graduates
Recent data from the Office for National Statistics (ONS) highlights the growing challenges in the UK job market. In May alone, over 109,000 payrolled positions disappeared—the steepest decline in five years. Employers, facing rising costs, are becoming more cautious.
Staff cuts are becoming more common, and recruitment efforts are slowing down, leading to a decrease in the number of job vacancies. For the 35th consecutive quarter, the number of job vacancies has dropped, falling by 63,000 to just 736,000 available roles across the country.
This tightening job market presents an additional layer of difficulty for international students, who already face challenges such as visa restrictions, sponsorship hurdles, and cultural adjustments. With fewer job openings available, competition for roles is intensifying, making it harder for graduates to transition from study visas to full-time employment.
The path to obtaining a Skilled Worker visa, which is typically the goal for international students, is becoming more difficult as companies hesitate to hire candidates requiring sponsorship.
Shrinking Opportunities and Higher Costs
In April 2025, there was a significant change in the UK’s tax system that put additional pressure on employers. Employer National Insurance contributions rose to 15% on salaries over £5,000, up from 13.8% on salaries over £9,100. At the same time, both the minimum wage and the national living wage increased, adding further costs for businesses.
For international students, this shift means that even companies with a history of hiring graduates on the Graduate Route are scaling back their recruitment efforts, especially in industries like finance, technology, and media, where international talent has traditionally been sought after.
Impact on High Aspirations and Entry-Level Pay
International students with ambitions to work in fields such as finance, tech, or media are feeling the strain of the UK’s tough job market. Even when positions are available, the slowing growth in pay—now at just 5.2%, the weakest in seven months—means that entry-level salaries may no longer be enough to cover living expenses, especially in expensive cities like London.
Many international graduates may also find themselves in the unfortunate situation of underemployment—accepting roles far below their qualifications just to remain in the country. For those who were counting on gaining UK work experience to further their careers, this could mean a detour, or even a roadblock, to their professional goals.
Looking for a Turnaround
Despite these challenges, there is some hope that things may improve. Inflation is expected to ease slightly, with figures showing it down to 3.4% in June 2025, and there is potential for relief through interest rate cuts from the Bank of England.
However, with global trade dynamics shifting and domestic economic uncertainty lingering, UK employers are still cautious about the future.
For international students already in the UK, diversifying their job search strategies will be important—focusing on sectors with more hiring resilience, investing in new skills, and reaching out to potential employers early in their job search process. Those still considering studying in the UK may want to carefully assess the job market before making their decision.
While the UK has long been considered an ideal destination for international students looking to kick-start their global careers, the job market in 2025 presents new challenges. With fewer job opportunities and rising costs, international students may need to rethink their strategies and find new ways to adapt to a more competitive and uncertain labour market.
In this evolving environment, securing a job in the UK may require more than just a degree—it will take resilience, flexibility, and adaptability to navigate the changing landscape.
