It’s no secret the UK currently has a serious issue with youth employment, with a large number of 18-24 year olds struggling to get into education, training and jobs. Statistics indicate that the youth unemployment rate rose to 16.4% (March to May 2026), reaching an 11-year high.
If this is not already a worrying enough statistic, it is found that UK businesses are likely to hire fewer graduates over the next year. Many businesses see a graduate hire as a long term investment, so when budgets tighten due to financial pressures, it’s often one of the first areas to see first hand impacts.
As HR professionals, this sparks concern for us and how we protect our future workforce. So how can that be done?
Tightened budgets and additional pressures does not mean we have to go from hiring to not hiring at all. Reduced intake may be necessary; maintaining a smaller, structured and consistent graduate intake would make a more sustainable approach for businesses. Of course this will look different for every business. As an SME, your graduate intake is likely to be much less than a large organisation – it needs to be relative and sustainable to the business.
So where should your focus be?
Employers need to focus on hiring smarter, rather than relying on a strategy of hiring less. By stopping recruitment altogether, this can create greater struggles down the line when trying to rebuild the process and the workforce. Therefore, restructuring and re-strategising the way you hire is a far more sustainable approach, which does not have a great detriment to our future talent.
Supporting young people into employment is not only about giving individuals their first opportunity. It is about building the workforce businesses will rely on in the years ahead.
The businesses that continue to invest in early-career talent, even on a smaller and more targeted scale, may be the ones best positioned when the employment market improves.
Fully funded support – available now:
We understand that recruitment can feel overwhelming for businesses. In SME’s especially the process is often managed internally, with limited time, resources or specialist recruitment expertise. This can sometimes expose businesses to unnecessary risk, particularly when they are unsure of what they need to get right throughout the process.
Having the right structure, guidance and approach in place can make recruitment more manageable, reduce risk and give businesses greater confidence in their hiring decisions.
In a tight labour market and with financial pressures continuing to rise, getting your recruitment right has never been more important. If you are a York or North Yorkshire business we have the tools for you and it won’t cost you anything!
Here is the upcoming support you can access. Spaces are limited and allocated on a first-come, first-served basis. Please see the details below to book:
HR TOOLBOX TALKS (ONLINE WEBINAR)
HR best practice on: Inclusive Recruitment, Onboarding and Retention
These sessions will provide your managers with practical tools and best-practice guidance to recruit, onboard, and retain employees effectively and inclusively.
17th September | 6th October | 13th October
9:00am – 10:00am
Online
Book your free place:
HR MASTERCLASS (IN-PERSON)
‘Top tips on hiring inclusively and on the right side of employment law’
Recruitment mistakes can be costly. This practical session will help you strengthen your recruitment processes, reduce risk and attract a greater talent pool of candidates. You will take away tangible advice and a personalised plan related to your own recruitment processes.
27th October
9:30am – 11:30am
In person, McMillan and Associates Offices
Book your free place: email zoe@mcmillanandassociateshr.com
Get in touch:
🌐https://mcmillanandassociateshr.com/
📞 07983494048