Hiring trends
January 23, 2026
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.
Graduate hiring has always been cyclical, but several factors are converging at once:
As a result, many organisations are hiring fewer graduates – but expecting more from those they do bring in.
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:
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.
In areas like compliance, risk and governance, graduate hiring has become more targeted rather than eliminated.
Many firms are:
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.
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:
Clear expectations, realistic role design and strong onboarding matter more than ever for junior hires, particularly in regulated environments.
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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