Employers are concerned about the use of artificial intelligence (AI), which is causing young people to be less prepared for work. They may also oversell themselves when applying for jobs.
According to the annual survey of student development conducted by the Institute of Student Employers, around half of employers worry that AI-based selection processes used by graduates (48%) or school and college dropouts (52%), misrepresent their abilities.
While AI-driven job applications have led to a record number of applications, those who will be starting their careers by 2025 are likely to have been in lockdown and experienced fewer opportunities for work experience.
The ISE survey revealed that employers worry that new student hires may be less prepared than their previous intakes.
Concerns about essential communication and interpersonal abilities have increased significantly.
Covid has had a significant impact on the cohort of students graduating this summer. The government has canceled the 2020 GCSE exams and imposed restrictions on A-level study.
In 2025, employers will report that 54% did not believe that graduates met expectations for self-awareness. This is up from 35% and 43% in the previous years. In the meantime, 46% of employers expressed concerns about resilience. This is up from 37% in 2020 and 30% in 2030.
Employers were also concerned about verbal communication that was appropriate for the workplace. This is up from 17% of employers in 2024, and 7% of employers in 2023.
Employers have reported that they are not meeting expectations for school and college graduates in certain areas. In 2025, employers will be more concerned about resilience than ever before (up from 25% in 2023 and 35% in 2020), and 43% of them will mention self-awareness.
In addition, the number of people who are concerned about verbal communication at work (up from 29 % in 2024 to 22 %) and written communication (up to 46 %) has increased.
Most employers are satisfied with the technical and analytical skills of school-leavers and graduates, including problem-solving.
Stephen Isherwood said, “When employers hire new employees whose skills do not match their performance at recruitment, it creates a situation where no one wins. The training process can be disrupted at best. At worst, the candidate may find themselves in the wrong position.
“It is important that students be honest about their abilities, but we must do more to increase their confidence.” Work experience is a must for hiring. This is the most important step that a student can do to increase their employability. The internship will develop the skills that employers are looking for. Employers also like to hire previous interns. Students may even find themselves with a new job afterward.”
Lack of experience in the workplace can negatively impact on the performance of students as they begin their careers. Most employers (77%) said that graduates with internships or work experience had better skills and attitudes.
In its current form, the ISE Student Development Survey has been conducted every year for 10 years. The most recent survey was conducted between January and March of 2025, and received 148 replies from employers in a variety of sectors and organisations.
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