According to new data, employers are increasingly worried that students are misrepresenting themselves in job applications if they rely on AI.
It is possible that many graduates and school-leavers are not meeting the workplace expectations, despite having submitted strong applications.
According to the annual report of the Institute of Student Employers, around half of employers think that students overstate their abilities by utilizing AI tools during the recruitment process. Employers were worried about a number of things, including graduates and school-leavers.
While AI has led to an increase in job applications employers still find a disconnect in candidate performance when selecting candidates and their abilities once they are in the role. These candidates have studied during lockdown, and had less opportunity to gain work experience. This has a lasting impact on their readiness for employment.
In addition, the report identifies an increase in concern about interpersonal and communication skills. Employers claim that these are the key areas in which student hires fall short, especially when it comes to self-awareness and verbal communication.
Skills gaps between graduates and school leavers
Employers say that graduates who enter the workforce in 2025 show a decline in key employability characteristics. Employers now report that graduates are lacking in self-awareness, up from 43 percent in 2020 and 35 percent in 2013. Employers’ concerns about the resilience of graduates also increased, with 46 percent in 2020 compared to 37 per cent in 2017 and 30 per cent in 2023.
Communication skills verbal and in writing have been scrutinized more. Employers in 2025 said that 22 percent of graduates did not meet their expectations for verbal communication. This number has increased from 7 percent in the year 2023 and 17 percent in 2020.
The scrutiny of school and college graduates is also increasing. 48 percent of employers in 2025 expressed concern about their resilience. This is up from 25 percent in the year 2023 and 35 percent in 2020. Employers raised self-awareness issues by 43 percent, up from 31 percent in the previous year.
42 percent of employers cited verbal communication problems that were not appropriate for the workplace. This is up from 22 percent and 29 percent in both 2024 and 2023. In 2025, 46 percent of employers found that written communication standards were lacking. This is a substantial increase from the 28 percent who did so in 2024 and in 2023.
Despite this concern, students continue performing better in areas such as technical and analytic skills, problem solving, etc. Most employers felt that student performance in this area was in line with their expectations.
Work experience is still a key factor
This survey shows employers’ value of work experience. Most respondents (77%) said that graduates with internships and placements had better skills and attitudes at work than those who did not.
Stephen Isherwood is the joint CEO of the Institute of Student Employers. He said that the gap between the recruitment performance and workplace capabilities poses problems to both employers and candidates.
“When employers hire new employees whose skills do not match their performance in recruitment, it creates a situation where no one wins. He said that at best the training process will be disrupted and, at worst the candidate may find themselves in the wrong position.
Isherwood stressed the importance of transparency from applicants regarding their capabilities, and called for more focus on helping students gain confidence through practical experiences.
“It is important that students be honest about their abilities, but we must do more to increase their confidence.” It is undeniably true that hiring people with work experience leads to better results. 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.”
