The Reality Gap: How Academic Awards Can Empower Students Amid a Challenging Graduate Job Market

As the class of 2025 prepares to graduate, new research from the US, UK and Europe reveals a growing disconnect between what students expect from the job market and the realities they’re likely to face. For educators and university lecturers, these insights present both a challenge and an opportunity: to support students not only in academic achievement but also in building the visibility, adaptability and confidence they’ll need after graduation.

The US Landscape: High Hopes, Harsh Realities

A recent ZipRecruiter study highlights a stark mismatch between what graduating students in the United States anticipate and what recent graduates have actually experienced:

• 82% of students expect to find a job within three months of graduating, but only 77% of last year’s graduates did, with 5% still unemployed

• Students expect average starting salaries of $101,500, yet the real figure is closer to $68,400

• While 90% of students prioritise flexible working, only 29% of recent graduates report having highly flexible roles

• Only 9.7% of graduates found full-time work through internships, despite nearly 40% of current students expecting them to lead to employment
  

"Navigating the transition from campus to career can be a challenge for new grads, especially given the unpredictable market this class is stepping into. The grads who come out ahead are those who start their search early, stay open to different paths, and keep at it, even if things don’t go exactly as planned. Remember, your first job isn’t your final destination—it’s just the beginning of your journey." - Ian Siegel, ZipRecruiter Co-Founder and CEO

UK Trends: Record Competition and Stagnant Pay

In the UK, graduates face similarly difficult conditions. According to the Institute of Student Employers and Times Higher Education:

In the UK, graduates face a highly competitive job market. According to the ISE, the average graduate starting salary has increased by 3% in the last year to £32,000. However, when adjusted for inflation, this represents a decline in real terms.

The ISE also reports that employers received over 1.2 million applications for graduate roles, with an average of 140 applications per vacancy—a 59% increase from the previous year. This surge is partly attributed to the widespread use of AI tools in job applications, leading to a volume-quality trade-off.

Meanwhile, Bright Network reports that:

• 89% of students feel anxious about their future job prospects

• Over 50% are using AI tools in job applications, raising concerns around authenticity and effectiveness

Europe: Underemployment and Skill Mismatch

Across Europe, recent graduates are often underemployed. A study published in the Journal for Labour Market Research found that many graduates occupy roles that do not require a degree. This mismatch leads to lower wages and a lack of opportunity to apply and develop academic skills.

The Role of Academic Awards in a Competitive Market

Given these global trends, initiatives like The Global Undergraduate Awards (GUA) are more valuable than ever. By recognising and celebrating outstanding undergraduate research across a range of disciplines, GUA helps students bridge the gap between academic success and employability.

Awards like GUA:

• Increase visibility – Students gain international recognition that can set them apart in a crowded job market

• Build confidence – Being Highly Commended or named a Global Winner validates students' work and ambition

• Demonstrate excellence – A GUA distinction provides trusted, independent recognition that employers respect

• Foster networks – Through its global community of participants, judges and alumni, GUA helps students connect with like-minded peers and potential mentors

Helping Students Stand Out

As AI tools standardise CVs and application processes become more automated, verifiable academic achievements like those offered through GUA can make a genuine difference. For students from all backgrounds, such recognition offers a way to stand out based on merit, originality and academic rigour without the need for considerable amounts of further work.

Looking Ahead

Despite short-term challenges, the long-term outlook remains optimistic. Universities UK projects that over 11 million additional graduates will be needed in the UK alone by 2035, particularly in STEM, healthcare and education sectors.

Equipping students with the tools, experiences and accolades to navigate this evolving market is essential.

Awards aren’t just about celebrating great work—they are about helping students take their first steps into the world with confidence and clarity.