Hiring trends

The graduate job slowdown: what it means for early-career talent in financial services

January 23, 2026

What it means for early-career talent in financial services

Recent reporting has highlighted a growing challenge for graduates entering the job market. Despite strong academic results and increasing numbers of applicants, fewer entry-level roles are available and competition for them is intensifying.

 

This trend is particularly visible in professional services, including financial services, where firms are hiring more cautiously and being far more selective about early-career roles.

 

While this may feel discouraging for graduates, it also signals a shift in how firms think about junior talent – and what actually matters when building a career in financial services today.

Why graduate hiring has slowed

Graduate hiring has always been cyclical, but several factors are converging at once:

  • Ongoing economic uncertainty
  • Tighter headcount planning across FS firms
  • Automation reducing some traditional entry-level tasks
  • Greater focus on experienced hires in critical roles

As a result, many organisations are hiring fewer graduates – but expecting more from those they do bring in.

What this means for early-career candidates

For graduates and junior professionals, the challenge isn’t just volume – it’s differentiation.

Strong academic credentials still matter, but they’re no longer enough on their own. Hiring managers are increasingly looking for evidence of:

  • Real-world exposure (internships, placements, project work)
  • Commercial awareness
  • Communication skills and confidence
  • Clarity around why financial services

We’re seeing early-career candidates progress fastest when they can articulate how their skills apply to regulated, real-world environments, rather than relying solely on qualifications.

The compliance and risk lens

In areas like compliance, risk and governance, graduate hiring has become more targeted rather than eliminated.

Many firms are:

  • Hiring fewer juniors
  • But investing more in training and long-term development
  • Prioritising candidates with curiosity, judgement and adaptability

This reflects the reality of modern compliance work, where context, decision-making and regulatory understanding matter just as much as process.

For graduates interested in these areas, demonstrating an understanding of the function, and not just the title, is increasingly important.

What hiring teams should consider

For employers, a slower graduate market presents an opportunity as well as a challenge.

Organisations that continue to invest in early-career talent, even at smaller volumes, often benefit from:

  • Stronger loyalty and retention
  • Home-grown capability aligned to the business
  • Future-proofed succession planning

Clear expectations, realistic role design and strong onboarding matter more than ever for junior hires, particularly in regulated environments.

Looking ahead

The graduate job slowdown doesn’t mean opportunity has disappeared, but it does mean the path in is less linear.

For early-career professionals, focus has shifted from volume applications to intentional moves, skill-building and understanding where they can add value. For firms, the challenge is balancing short-term caution with long-term talent needs.

In a market like financial services, where expertise takes time to develop, thoughtful early-career hiring remains a strategic advantage.

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