Graduates are increasingly missing out on job offers because they are not considered ready for the workplace, according to new research that suggests a widening gap between academic achievement and professional expectations.

A survey commissioned by Regent’s University London found that 80 per cent of recruiters believe graduates are losing out on roles due to a lack of professional maturity and work readiness. A further fifth described some candidates as “work shy” and lacking self-awareness.

Recruiters said a strong work ethic was the most commonly missing attribute among graduates, followed by communication skills, decision-making ability and accountability. These softer skills are now seen as more important than academic credentials, with 78 per cent of employers saying they prioritise candidates with strong interpersonal skills over those with top grades or technical expertise.

Practical experience is also viewed as critical. Nearly one in five recruiters said graduates fail to secure roles because they lack hands-on, on-the-job experience. As a result, 79 per cent said they favour applicants who have practical work exposure over those without it.

The findings reflect broader concerns about how well traditional university education prepares students for employment. More than 70 per cent of recruiters surveyed said higher education does not adequately equip graduates to thrive in professional environments, suggesting many are struggling not because of academic shortcomings but because of a disconnect between theory and real-world capability.

One in five recruiters said they had rejected candidates directly because of skills gaps they attributed to shortcomings in university preparation.

The pressures are compounded by rising competition for graduate roles and a softening labour market. Data from Jisc show graduate unemployment increased from 5.6 per cent to 6.2 per cent between 2021/22 and 2022/23, while the proportion in full-time employment fell from 59 per cent to 56.4 per cent.

Even when graduates do secure roles, employers report longer periods before they are deemed fully effective. Seventy-one per cent of recruiters said they have extended probation periods for graduate hires because of misaligned expectations around work ethic and softer skills.

Professor Geoff Smith, vice-chancellor and chief executive of Regent’s University London, said the findings highlighted the need for reform in higher education.

“It’s increasingly clear that traditional approaches to higher education are no longer preparing students for the realities of employment,” he said. “Universities must evolve to ensure students can communicate effectively and thrive in professional settings.”

He said Regent’s prioritises experiential learning, collaborative projects and practical engagement with businesses to bridge the gap between academic study and workplace expectations.

The research underscores growing employer concerns that academic success alone is no longer sufficient in a competitive labour market where adaptability, resilience and interpersonal capability are increasingly prized.

Jamie Young

Jamie is Senior Reporter at Business Matters, bringing over a decade of experience in UK SME business reporting.
Jamie holds a degree in Business Administration and regularly participates in industry conferences and workshops.

When not reporting on the latest business developments, Jamie is passionate about mentoring up-and-coming journalists and entrepreneurs to inspire the next generation of business leaders.

Advertisement

South Korean steel specialist SeAH Wind and offshore wind developer Ørsted have mutually agreed to discontinue monopile production on Teesside

Teesside windfarm manufacturer SeAH Wind has lost work on a significant UK windfarm with offshore developer Ørsted – the first contract it was awarded – after agreeing to cease production.

The South Korean steel expert, which launched construction on its £900m factory on the Teesworks site in 2022, and the Danish developer released a joint statement announcing a mutual agreement had been reached to suspend work on the production of monopiles for Ørsted’s Hornsea 3 offshore wind farm.

This decision follows “a shared assessment of factory readiness against the programme requirements of Hornsea 3”. The statement indicates that halting production on the Hornsea 3 deal allows SeAH Wind to concentrate on completing the backlog of orders it has pending, and to progress its future pipeline. Ørsted, on the other hand, stated that the Hornsea 3 project has not been impacted by the production stoppage at SeAH.

The Ørsted’ deal was the first contract that the SeAH Wind Teesside factory secured, but other work includes the construction of monopiles for RWE’s Norfolk Vanguard project this year. It remains unclear whether jobs will be lost due to the contract’s termination, reports Teesside Live.

The statement read: “SeAH Wind and Ørsted confirm that they have mutually agreed to discontinue monopile production for the Hornsea 3 offshore wind project. This decision reflects a shared assessment of factory readiness against the programme requirements of Hornsea 3.

“It ensures that the project schedule for the world’s largest offshore wind farm remains protected and uncompromised. The agreement allows SeAH Wind to focus on the safe and reliable delivery of its secured order backlog through to 2027, whilst continuing to progress a strong pipeline of opportunities beyond that period. This underlines confidence in SeAH Wind’s technical capability, manufacturing scale, and long-term role in the UK and European offshore wind supply chain.”

The development represents a significant setback for the North East and Britain’s green energy sector, arriving more than three years after Ørsted signed the ‘industry first’ contracts. Under the original arrangement, SeAH Steel Holdings was to manufacture the enormous seabed-piercing structures, alongside Spanish partner Haizea Wind Group.

The Danish energy giant finalised the agreement with SeAH Wind in September 2022, shortly after construction commenced at SeAH’s XXL monopile facility at the Teesworks site. Workers at the vast Teesworks plant began the maiden project last July, commemorating the occasion with a ceremony featuring the cutting of the first steel plates.

When the agreement was finalised, business leaders praised Ørsted for becoming the first major client for the developing facility in the North East. The two companies stated the partnership would “contribute significantly to the UK’s ambitious goal of achieving 50GW of operational offshore wind capacity by 2030”, describing it as representing “represents not only a significant leap forward in the right direction for the development of offshore wind in the United Kingdom, but acts as a benchmark for the future scale of the industry at a global level”.

Tees Valley Combined Authority declined to comment on the suspension of the contract. Ben Houchen wrote in a Facebook post last Friday: “One year ago today, it was an honour to welcome His Majesty The King to Teesside and to visit the SeAH Wind factory. It was a huge moment for everyone involved, from the apprentices just starting out to the experienced engineers helping build the future of offshore wind. His Majesty’s visit shone a spotlight on the scale of what’s happening here.

“World-class manufacturing. Serious investment. And real, well-paid jobs for local families. Twelve months on, production is progressing, skills are being developed, and this site is playing a key role in powering Britain’s clean energy future.”

The announcement follows Ørsted’s receipt of six monopiles for Hornsea 3 – produced by Haizea Wind at their Bilbao facility in Spain – which arrived at the Teesworks location.

Speaking on ET Now, Sumit Pokharna from Kotak Securities described the partnership as “a step in the right direction” and “the need of the hour.” He explained, “The goal of this partnership is to help companies in complex and regulated industries use AI safely. Industries like telecommunications, banking, insurance, manufacturing, and software development cannot experiment freely with AI. They need governance, transparency, compliance, reliability, and security.”

On whether larger IT companies would have an advantage over midcaps in AI collaborations, Pokharna said, “Large companies will have an upper hand because of the bandwidth they have, but we cannot ignore midcap companies who have specialization in niche areas, like Coforge or Hexaware Technologies. They have unique skills, strong focus, and deep customer relationships. They will also benefit—it is not just that larger companies will take the entire cake.”

Regarding potential revenue impact and AI-driven growth, Pokharna noted, “So far what we have pencilled, we believe we have already pencilled a part of it, and we expect 2% to 3% lower growth over the next three years because of GenAI. AI risk is not being ignored. The worst impact is expected in 2027, which could be the year when investor pessimism about IT stocks will be at its highest.”

On the market’s reaction to AI and valuations, he added, “Markets are currently discounting too much disruption. AI improvements are meaningful but incremental. Current stock prices already reflect low long-term growth. Some quality challengers may benefit from AI rather than suffer from it. We believe the market is pricing long-term AI disruption more aggressively than the evidence justifies, and that overreaction may create investment opportunities for smart investors who can buy value or quality stocks at reasonable valuations.”

Live Events

On whether valuations could compress further, Pokharna warned, “The narrative that AI will disrupt and reduce working hours and billing rates has created pessimism. IT sector stocks have corrected significantly. It is a falling sword—we cannot rule it out. But this is an overreaction, as full evidence is not yet available. Whenever such negative expectations build up, it often gives opportunities to smart investors.”
With AI partnerships gaining momentum, industry watchers say investors should focus on fundamentals and sector specialization rather than short-term market noise. The Infosys-Anthropic collaboration may mark just the beginning of a wave of AI-driven alliances in the Indian IT sector.