Why graduates struggle & how to succeed

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November 28, 2025

This blog is for informational purposes only and does not constitute professional or legal advice. For eligibility and claims regarding Universal Credit, please consult the UK government website or a qualified adviser.

Working Tips for Gen Z

Graduating from university is a major milestone in anyone’s life. It is simultaneously the end of youth and the real beginning of adulthood, exciting but daunting.

This is true for every generation, but it seems that for Gen Z this milestone carries a lot of variables that previous generations may not have had to contend with.

For example, the average salary has fallen far behind the average house cost. In 1974, the average joint salary was £3,567 and the average house price was about 2.8 times that at £10,027. As of 2024, the average joint salary is around £67,288 and the average house price is now around 3.9 times that at £265,012. In 2024, a couple would need eleven years and three months to save for a deposit (by setting 20% of their disposable income). In 1974, the method would take just three months.

Furthermore, degrees aren’t opening the doors they once did post university, and entry level positions are disappearing. According to Handshake, a Gen Z–focused career platform, entry-level job postings, particularly in corporate roles, have dropped 15% year over year. At the same time, the number of employers referencing “AI” in job descriptions has surged by 400% over the past two years. Tasks that would’ve previously been open for graduates to ease them into the working world and gain experience are now being delegated to ChatGPT. In a CNBC interview with OpenAI’s CFO Brad Lightcap, he said that as of February 2025 ChatGPT saw 400 million active weekly users. A later report confirmed that by April 2025 that figure had reached 800 million.

Though the increasing prevalence of AI is not considered the sole cause for any impact on the job market as Kirsten Barnes, head of digital platform at Bright Network states: “Any shifts in the graduate job market this year […] appear to be driven by a combination of factors, including wider economic conditions and the usual fluctuations in business demand, rather than a direct impact from AI alone.”, it is certainly a considerable factor, according to Auria Heanley, co-founder of Oriel Partners, which recruits for personal assistant roles, who has seen a 30% drop in entry-level roles this year: “[I have] no doubt that AI combined with wider economic uncertainty, is making it much tougher for graduates to find these roles”. Felix Mitchell, co-chief executive at Instant Impact, which recruits for mid-sized businesses, said jobs related to STEM [science, technology, engineering and mathematics] were the most disrupted. “I do think that the evidence suggests that AI will likely be a net job creator, but the losses are happening faster than the gains.”

So what is there to do? Here are some tips that can steer you in the right direction.

1. Universal Credit

Universal Credit is an essential service, and more people have used it than you might think. In July 2024 there were 6.9 million people claiming Universal Credit, and that has since raised to 8 million as of July 2025, which is an indicator of how essential a service it is during economic insecurity. Universal Credit can be a lifeline during the transitional period between university and starting your career, or even between careers. According to the Universal Credit website, you are eligible if you are:

Working (including self-employed or part time)
unable to work, for example because of a health condition

And to claim you must:

live in the UK
be aged 18 or over (there are some exceptions if you’re 16 to 17)
be under State Pension age
have £16,000 or less in money, savings and investments

In exchange, you have to be actively looking for work and attend meetings every couple of weeks with a work coach who is assigned to you, which can be very beneficial if you have a clear idea of your goals and aspirations. Your work coach is there to help you, and if you ask them they will suggest. They can help you find part time work to help keep you afloat as you develop your long term career, and there may even be courses or apprenticeships that you can pursue through Universal Credit schemes that subsidise any fees.

2. Develop Your Skills

Another issue that Gen Z are facing currently is entering the workforce. A common prerequisite for most jobs in the modern day is a requirement for experience, but as the pool for entry level positions shrinks there are fewer and fewer opportunities to gain the experience required for these positions. So what can be done?

Make your own experience. Building a portfolio of spec work that is relevant to the positions you’re looking for is a great first step in proving yourself.
Looking for voluntary roles and internships. When money isn’t a concern, employers are more open to taking chances on inexperienced talent. You’ll get the chance to gain the experience for your CV that will lead to paid work.

3. Networking

Networking applies to any field, corporate or creative. It can open up doors and opportunities that would otherwise not materialise through the traditional means of job applications. Attending networking events where you’re likely to meet employers shows initiative and drive, as well as giving you the chance to present your best self beyond your CV. According to the resulting data from a LinkedIn survey carried out in 2017, 80% of professionals consider networking important to career success.

This doesn’t just apply to employers, but also peers. There is likely a community for any skill, vocation or hobby. Other people with similar interests and aspirations may have tips and advice for next steps, want to collaborate in some fashion, or even share opportunities. It’s estimated that 70% of all jobs are not published on publicly available job search sites, and research has long shown that anywhere from half to upwards of 80% of jobs are filled through networking.

Networking can be as simple as messaging someone in the same field on LinkedIn and asking them for advice, or to express your interest in any opportunities they may be offering. LinkedIn is also a great place to find out about industry networking events, as well sites like eventbrite.

What Can Employers Do?

Gen Z tends to have a less than favourable reputation in today’s culture, especially when it comes to work, but it’s not definitive that this perception has any factual basis, or if Gen Z just have different expectations, priorities, and goals than previous generations. A 2024 Deloitte survey found that about 89% of Gen Z and 92% of Millennials surveyed think “purpose is important to job satisfaction and well-being” and “want to find meaning in their careers.” A reasonable conclusion from this data is that businesses should consider how their objectives and methods can appeal to the Millennial and Gen Z workforce.

Moreover, a common consensus is that Gen Z wants to start and build a career but are struggling to get there. According to a report by kickresume in June 2025, 58% of fresh graduates they surveyed are still looking for their first job after graduation, while only 25% of earlier graduates had been in the same position.

With stagnant wages, uncertainty, and AI becoming a more and more prevalent in the workplace, it could be argued Gen Z don’t feel any real motivation in their jobs because for them the rewards do not justify the labour required, as suggested by some Gen Z employees interviewed, “Rowan, for one, reckons that if buying a house, living in a nicer property, having kids or going on more holidays felt tangible, she would work harder and make more of an effort. But until then, she says: “What’s the point?””

The number of entry-level roles being advertised has fallen by a third since the launch of ChatGPT in November 2022. This is reportedly causing many graduates to feel their degrees have reduced in relevance. According to a Harris Poll carried out by Indeed, 51% of Gen Z respondents considered their degrees a waste of money, as opposed to 10% of Baby Boomer respondents. In spite of this, it can be argued, such as by Fawad Bajwa, global AI, data, and analytics practice leader at executive search and leadership advisory firm Russell Reynolds Associates, that “AI isn’t necessarily causing jobs to disappear overnight but rather are being fundamentally transformed and restructured to involve more oversight and less manual work.”

Reintroducing more entry level positions along with training and support for AI would be a first step in rectifying the situation a lot of the workforce are finding themselves in, and will only benefit both employers and employees in the long run, according to Linsey Fagan, Indeed Senior Talent Strategy Advisor, as every job will likely eventually be impacted by generative AI.

“For any organization to succeed with AI, every single employee needs to have a basic understanding of AI and how their company uses it,” Fagan said in an email to CIO Dive. “Leaders play a crucial role in this shift by assessing their teams, listening to individual needs, and supporting their development.”

“To truly unlock the potential of AI, organizations must invest in their people, offering training, hands-on experiences, and opportunities to explore new tools in a supportive environment,” Fagan continued. “Organizations need employees to be motivated to try these tools and want to apply them in their day-to-day.”

Sources:

1974 vs 2024: How much harder is it for first-time buyers today?

https://mojomortgages.com/mortgage-news/homeownership-50-year-analysis-house-prices-salaries

CNBC Interview with OpenAI CEO Brad Lightcap

https://www.cnbc.com/2025/02/20/openai-tops-400-million-users-despite-deepseeks-emergence.html

Trends in AI Report

https://www.bondcap.com/report/tai/#view/1

‘Workforce crisis’: key takeaways for graduates battling AI in the jobs market | Artificial intelligence (AI) | The Guardian

https://www.theguardian.com/technology/2025/jul/13/workforce-crisis-key-takeaways-graduates-ai-jobs-market

6 Obstacles 2024 Gen Z Graduates Face In The Job Market https://www.forbes.com/sites/bryanrobinson/2024/06/06/6-obstacles-2024-gen-z-graduates-face-in-the-job-market

Universal Credit: Eligibility

https://www.gov.uk/universal-credit/eligibility