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Graduate hiring rises 4% as AI misconduct concerns grow
By CVTailorly Research Desk · Published
This article was researched with AI assistance and fact-checked by our editor against the sources below.
Graduate recruitment in the UK has grown slightly after last year's fall, but competition for places remains at a record high. The Institute of Student Employers (ISE) published its Student Recruitment Report 2026 on 14 October 2026. It also found that the share of employers reporting candidate misconduct reached a new high, most commonly the unauthorised use of AI in interviews and online assessments. Employers say they are redesigning their hiring processes in response.
Key figures
The figures below come from the ISE release on the Student Recruitment Report 2026 (14 October 2026). The full report is available to ISE members, so this article uses only the figures ISE has published openly. According to ISE, the report analyses data from 155 employers, covering more than 1.7 million applications and 31,577 hires during the 2025/26 student recruitment cycle. ISE describes its survey as the largest survey of student employers in the UK. The ISE research page gives the same totals, describing the 31,577 as "hires and work experience placements".
Hiring. ISE found graduate recruitment was up 4%, following an 8% decline the previous year. It said growth was uneven and driven by a small number of employers: 45% increased their graduate intake, 15% maintained it and 40% made reductions. Employers forecast 7% growth in 2026/27, again driven by only a few employers.
Competition. ISE said competition for jobs "remains at a record high", with 141 applications per graduate role and 96 per apprenticeship. Competition was highest in London, at 172 applications per graduate vacancy, and in financial and professional services, at 158.
Graduates applying for school-leaver roles. 62% of employers reported an increase in graduates applying for roles aimed at school and college leavers this year, compared with 40% in 2025. Growth in apprentice hiring is slowing: after an 8% increase in 2025, hiring rose by 4% this year, and employers forecast 2% for 2026/27.
Misconduct. 92% of employers suspected or confirmed student misconduct in assessment and selection processes, compared with 85% in 2025 and 78% in 2024. Reports of occasional misconduct rose to 47% from 27% in 2024, and the share of employers with no concerns fell from 22% to 8%. The most common forms of misconduct were the unauthorised use of AI during interviews and online assessments.
Employer response. 77% of employers are reviewing or redesigning their processes. 82% provide guidance on acceptable and unacceptable use of AI, up from 55% in 2025. ISE said employers are using measures including more personal questions, time limits and randomised questions. To manage high volumes, some are using automated eligibility screening, shortening application windows or closing campaigns early, and limiting the number of roles or programmes candidates can apply for.
Employers' own use of AI. Only 16% of employers currently use AI in recruitment and 52% do not plan to adopt it. Even in the most advanced area, only 10% of game-based assessments are fully AI-driven. However, 29% of employers plan to introduce AI into recruitment within the next year.
What employers accept. The share of employers accepting AI use in the hiring process rose to 64% from 46% last year, particularly to help write CVs, cover letters and applications. ISE said candidates are usually not allowed to use AI during online assessments, interviews or assessment centres.
ISE joint chief executive Stephen Isherwood said: "There's no doubting that the graduate jobs market is tough, but it's not quite as bad as you perhaps think it is. The number of vacancies has stabilised, but AI has become problematic for everyone in the hiring process." He added: "Tools that enable candidates to apply for multiple jobs at once are driving up the competition and pressure on students. While it's understandable that candidates want to use AI, over-reliance can have the opposite effect. Employers are faced with applications that look the same and, in some cases, AI is being used to the point where it misrepresents a candidate's skills and abilities."
What it means for jobseekers
Check each employer's rules on AI. On ISE's figures, 64% of employers now accept AI use in the hiring process, particularly for CVs, cover letters and applications, while it is usually not allowed in online assessments, interviews or assessment centres. Read each employer's guidance (82% now provide it) and ask if you cannot find any.
Avoid sounding like everyone else. Stephen Isherwood said employers are faced with "applications that look the same". Sending large numbers of generic, AI-polished applications adds to the volume and makes it harder to stand out. With 141 applications per graduate role on ISE's figures, fewer applications, each tailored to the role and using your own examples, are likely to serve you better. Our guide to tailoring your CV to a job description and our student CV guide cover the basics.
Only include what you can back up. Anything on your CV can come up at interview, where AI help is usually not allowed. Claire Tyler, head of insights at ISE, who led the research, advised: "Employers don't expect candidates to be perfectly polished or to have every skill they are looking for, they want to understand what you can genuinely bring to the role."
Apply early. Some employers are shortening application windows, closing campaigns early or limiting how many roles candidates can apply for, so waiting until a published deadline is riskier.
Widen your options, but expect competition there too. More graduates are applying for roles aimed at school and college leavers, and growth in apprentice hiring is slowing, so these routes are not an easy fallback.
Prepare for personal and timed questions. Employers are adding more personal questions, time limits and randomised questions, which reward genuine preparation over scripted answers.
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