Work experience is a growing pressure point in the talent pipeline

As competition for graduate jobs reaches much earlier into the student journey, Dr Claire Tyler, ISE Head of Insights, examines what rising competition for internships and placements means for student transitions into employment

Demand for undergraduate work experience opportunities is growing much faster than supply. This year, the ISE Recruitment Survey 2026 revealed that internship applications increased by 27% and placement applications by 15%, while opportunities declined by 8%. As a result, competition intensified sharply, with applications per internship vacancy rising by 37% and applications per placement vacancy rising by 22%.

Overall, three quarters (73%) of employers offering internships and 64% offering placements experienced increased competition for places this year. For students, this means that gaining experience before graduation can involve the same high-volume, highly selective processes associated with graduate jobs.

Graduates are also increasingly applying for non-graduate roles to improve their chances of securing employment, adding to the pressure. This year 62% of employers reported an increase in graduates applying for roles targeted at school and college leavers, up from 40% last year.1

Work experience matters for work readiness

This pressure point matters because employers place significant value on work experience. The ISE Development Survey 2026 found that 94% of employers believe internships and placements contribute either a great deal or a fair amount to the development of students' skills and attitudes. This underlines the important role they play in building workplace readiness.

Work experience allows students to test career ideas, understand workplace expectations and develop evidence they can draw on in applications and interviews to demonstrate potential to employers. It can also help them build confidence, professional networks and a clearer sense of the environments in which they are most likely to thrive. 

This is particularly relevant because employers continue to identify gaps in workplace readiness. Around a third rated new joiners as ‘below expectations’ in adapting to workplace demands (35%), motivation and self-awareness (32%) and understanding the wider context (32%).2 In addition, 42% of employers expressed concern about the future quality of candidates. 

As roles evolve, these developmental benefits may become more important. More than half of employers (54%) identify the impact of AI and automation on new hires as a future concern. Students will need opportunities to develop judgement, adaptability and professional behaviours alongside technical capability. 

Recruitment processes are changing

This year’s Recruitment Survey also showed that record application volumes are prompting employers to rethink how they recruit and select talent and three-quarters (77%) of employers are redesigning or reviewing their recruitment process.3

Work experience forms a key part of this redesign. When asked how they are managing high application volumes for entry level roles, 39% of employers said they are targeting students earlier through work experience programmes (24% currently do this; 15% plan to soon) and 31% are converting a higher proportion of work experience students to hires (12% currently do this; 19% plan to soon).

Using AI to support screening or shortlisting is therefore only one of several measures employers are adopting to manage high demand for early career opportunities. In practice, other non-AI approaches remain more common, at least for now.

Employers are increasingly using automated screening questions, shortening application windows, limiting the number of programmes candidates can apply for, raising assessment thresholds and introducing self-screening tools that help applicants assess their suitability before applying.

These changes matter to students because they affect how applications need to be prepared.

How to use AI effectively in applications

It is understandable that candidates want to use AI when applying for work experience or graduate roles. However, over-reliance can damage employment prospects.

Employers are often faced with applications that look very similar and, in some cases, AI-generated content can misrepresent a candidate’s skills and abilities. We are advising students and graduates to:

1. Start with self-awareness: Understand your interests, skills, experiences, and career motivations before using AI.
2. Use AI to enhance, not create: Refine and strengthen applications, but only include skills and achievements you can genuinely evidence.
3. Demonstrate authentic motivation: Be prepared to explain why the role and organisation appeal to you personally.
4. Maintain your own voice: Use AI for structure and proofreading, ensuring the final application reflects your personality and experiences.
5. Authenticity is your advantage: Candidates stand out when they combine AI tools with honest self-reflection, personal insights, and real examples.

Looking ahead, internship hiring is forecast to increase by 3% in 2026/27, while undergraduate placement hiring is expected to decrease by 3%, leaving the overall number of opportunities broadly stable. Cost pressures, capacity constraints and wider economic uncertainty make it difficult for many employers to expand this provision.

With demand continuing to outpace supply, and policy ambitions seeking to increase the availability of work experience nationally, access to high-quality opportunities is likely to remain a significant challenge for the foreseeable future.

Notes

1. Graduate jobs stabilise, but AI use disrupts recruitment, ISE, 2026.
2. 5 top trends from ISE’s Development Survey 2026, ISE, 2026.
3. Graduate jobs stabilise, but AI use disrupts recruitment, ISE, 2026.

Written by

Claire Tyler

Head of insights

Institute of Student Employers