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Ambition amidst uncertainty

How Gen Z students are navigating a rapidly evolving job market influenced by rising living costs and changing work-life expectations

Introduction

Adapting to a changing job market

As the job market continues to evolve, students across Europe are encountering fresh challenges while preparing for their careers. We conducted a survey of 5,655 students from the UK, France, and Germany to gain insights into current job search trends. These findings focus on the UK.

Prioritising financial security and flexibility

UK students are stepping into a job market shaped by rising living expenses and shifting workplace expectations. Their top priority is financial security, with many aiming for jobs that offer both stability and opportunities for advancement. Additionally, flexibility in work location and hours has become an essential consideration in their job search efforts.

The competitive job market and application strategy

Students feel the current job market is saturated and are concerned about competition. To increase their chances of securing a role, many plan to apply for numerous positions, with the average student expecting to dedicate over 50 hours to job applications during the autumn. This reflects their understanding of the difficult path to landing a graduate role.

IRL challenges

Post pandemic, many students are growing more comfortable with returning to in-office work and attending in-person employer events. However, some student groups, particularly those with social anxiety or disabilities, still have concerns. These lingering reservations emphasise the need for employers to offer supportive measures and flexible options to accommodate diverse student preferences and needs.

Money Matters

Money matters

Students are anxious about starting their careers, with only 4% free of concerns. The cost of living crisis is a key factor, as 40% worry about covering basic expenses and 27% about repaying student loans. UK students, in particular, are more financially anxious than their French and German peers.

Amid financial pressures and burnout fears, students seek jobs that provide financial security, career growth, and a supportive work environment for their wellbeing.


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47% would accept a new offer if the salary was up to £10k higher

Financial pressures are a major influence on students' job decisions, with salary being the most important factor. Two-thirds would consider switching to a higher-paying job, and 47% would accept an offer if it provided up to £10,000 more. On average, UK students require an additional £8,717 to change offers, significantly higher than their peers in France (€2,004) and Germany (€3,241), likely due to the UK's cost of living crisis.

While salary is the top priority for all genders, female students place greater importance on progression, location, and team dynamics, while being less swayed by benefits or company reputation. This highlights the need for employers to take a more nuanced approach when attracting talent, considering gender-specific preferences alongside salary.


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Cost of living is top of mind when thinking about relocating

The cost of living crisis is also impacting how students approach relocation for career opportunities. Salary and benefits are the primary factors influencing their decision to relocate, followed by the cost of living, quality of life in the new location, and the availability of affordable housing.


The majority of students are open to relocating for the right graduate job, though the distance they are willing to travel varies. Sixty-nine percent prefer to remain within the UK, with 21% wanting to stay within their current region and 48% open to relocating elsewhere within the country.In particular, 54% indicate they would only consider relocating to within two hours' journey time from where they currently live.


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Flexibility and Location

Flexibility and location

For today’s students, flexible work hours are a crucial factor in job decisions, with 65% considering it one of the most valuable benefits. While open to in-office work, progression opportunities, staying close to family, and minimizing commute times are also important, with 54% preferring to stay within a two-hour commute of their current location.

Students are open to working in the office, but they want flexibility

While 75% of students are open to working in-office five days a week for the structure, networking, and productivity it offers, many still value flexibility. Concerns over rigid schedules, commute times, and costs are particularly high among UK students, reflecting their sensitivity to the cost of living.

Flexibility ranks as a top priority for 65% of students, often influencing their job decisions. With 47% worried about burnout, flexible hours and mental health support are essential benefits, signaling to students that employers care about work-life balance and wellbeing.


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Career progression is top of mind when thinking about location

Location is crucial in students' career decisions, with nearly half prioritizing areas with strong career prospects. Proximity to family ranks second (33%), while only 20% prioritize staying near friends, and 23% value being close to their university.

UK students, more than their peers in France and Germany, focus on the cost of living and affordable housing when considering relocation. As graduation approaches, practical factors like good transport links (39%) and a low cost of living (31%) become more important, reflecting a shift toward concerns about commuting and affordability.



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Career Confidence

Career confidence


As students enter the workforce, they balance optimism and concern. While 57% are confident about landing their desired roles, confidence varies by demographic. Those from higher socio-economic backgrounds and with prior experience feel more prepared, while students lacking experience or clarity on employer expectations face more uncertainty.


More than two thirds of students are certain of their preferred graduate job

Despite feeling anxious about starting their careers, 68% of students are confident in their preferred graduate role, with 48% already knowing which company they want to work for.

However, confidence levels vary across different student groups.

Confidence is notably higher among male students and those from higher socio-economic backgrounds.


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University support, a well-prepared CV and a strong academic record are the main confidence boosters

Students confident in securing their preferred graduate job credit strong university support, a well-prepared CV, and a solid academic record. In contrast, those lacking confidence cite limited work experience, feeling unprepared, and uncertainty about employer expectations. Students from lower socio-economic backgrounds are more likely to feel unprepared (47%) and report less work experience (57%).

Employers can attract talent by offering roles that match students' preferences and addressing concerns through targeted support. Highlighting the value of part-time work and broader experiences can boost confidence, especially for those balancing time and financial pressures



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IRL challenges

IRL challenges

As the impact of the pandemic's recedes, students are more open to attending in-person employer events, often preferring face-to-face interactions. However, social anxiety remains an issue, especially for female students and those with disabilities. Virtual events still appeal to these groups by reducing anxiety and fears of public speaking. Employers offering a hybrid of virtual and in-person events are likely to engage a wider range of students.


In-person is back, but there is nervousness

Post-pandemic, students are now more likely to attend in-person employer events than virtual ones. While most are comfortable with both formats, some students face barriers like social anxiety and fear of public speaking, making them less likely to join in-person events.

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Challenges for female and disabled students

Female and disabled students are less likely to attend in-person events and prefer virtual ones. They face more barriers like social anxiety, fear of public speaking, worry about negative impressions, and feeling overwhelmed. Social anxiety and fear of public speaking are particularly prevalent among female students (61% vs. 37%).

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Conclusion

Conclusion

As they transition into the workforce, students are confronting a job market that presents both significant challenges and exciting opportunities. Financial pressures, the cost of living, and the desire for flexibility are shaping their job preferences, but their resilience, ambition, and adaptability are positioning them to succeed. Employers who meet students' evolving needs have a unique opportunity to attract and nurture the talent of this next generation.



Methodology

Methodology

This research, conducted by Savanta from July 24 to August 22, 2024, surveyed 5,644 students aged 18-24 from universities in the UK, France, and Germany, including 2,020 from the UK. The study used quantitative online surveys (CAWI) with age and gender quotas to ensure a representative sample, and results were weighted by country, gender, and age. Participants self-reported demographic data, including socio-economic background, defined as ABC1 (higher/intermediate) and C2DE (lower). The margin of error is +/- 2.2 percentage points at a 95% confidence level.



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