In June, the Australian Association of Graduate Employers (AAGE) and the New Zealand Association of Graduate Employers (NZAGE) co-hosted a joint webinar titled “Keeping Your Programme Strong in Challenging Times.” This session explored current trends in graduate and intern recruitment across both countries, bringing together data from employer and candidate surveys, as well as panel perspectives from programme managers working directly in the field.

The panel included Ashley Jones (Beca), Naomi Houston (Watercare), Thomasin Schmidt (Quantium), and Ann Brinkamp (Monadelphous).

Attendees heard from graduate employers on current trends, recruitment challenges, and practical strategies for maintaining programme quality during uncertain conditions.

Australia: Steady Graduate Hiring Despite Tight Budgets

AAGE CEO, Shanan Green, began by presenting the latest Australian data, drawn from the AAGE’s suite of surveys, including its recently completed Market Snapshot.

Despite economic uncertainty, 92 percent of Australian employers plan to recruit graduates for 2026 start dates. Hiring volumes are expected to remain stable compared to the 2025 cohort. However, graduate teams are operating under increased pressure, with application volumes rising significantly while resourcing levels remain largely unchanged.

• In 2024, employers reported a 23 percent year-on-year increase in application numbers.
• Around 65 percent of employers have already seen further increases in 2025.
• Despite higher volumes, many early talent teams are facing budget constraints and limited staffing, at the same time as they are wanting to maintain quality candidate care.

Shanan noted that employer focus on graduate programme alignment with workforce strategy remains critical. Competition for quality talent remains high, even as the overall volume of applications grows.

Key Challenges Identified by Australian Employers:

• Ongoing competition for top graduates.
• Falling university enrolments over time.
• Reduced marketing budgets, affecting attraction strategies.
• Continued pressure to meet diversity and inclusion targets, particularly for First Nations candidates.
• Managing application volumes without additional resources.

Encouragingly, some long-standing issues have eased. Fewer employers report high rates of candidate withdrawals or reneges compared to previous years. Nevertheless, employer efforts to keep candidates engaged between offer and start date remain important.

The Role of AI in Early Careers Recruitment:

While students increasingly believe that AI plays a major role in recruitment, AAGE data indicates limited employer use of AI in selection. Most organisations continue to rely on human-led processes for assessment, using AI only for minor administrative or drafting tasks.

However, the broader implications of AI are becoming more prominent. Employers are beginning to question how AI may change the nature of graduate work and the kinds of skills future cohorts will need. There is growing discussion around how to ensure robust development opportunities in programmes where entry-level tasks may be automated.

On the candidate side, 27 percent of respondents in AAGE’s candidate survey reported using generative AI during recruitment processes, typically for CVs, cover letters, and interview preparation. Employers generally accept the use of AI as part of modern job-seeking behaviour but are placing greater emphasis on authenticity and communication skills during assessment.

Graduate Feedback: What Matters Most

Results from AAGE’s 2025 Graduate Survey show that development, flexibility, and meaningful support remain key to graduate satisfaction and retention. Flexibility, in particular, goes beyond remote working options and includes non-salary benefits, time allowances for external commitments, and personal development.

Graduates are drawn to programmes offering:

• Structured and unstructured learning opportunities.
• Personalised mentoring and coaching.
• Clear alignment between programme design and long-term career development.

New Zealand: Budget Pressures and Candidate Confidence

Naomi Houston, Emerging Talent Programme Manager at Watercare and NZAGE Board Member, shared insights from NZAGE’s 2024 survey data, developed in partnership with Talent Solutions.

The New Zealand market presents a different picture. Youth unemployment has risen sharply, and overall unemployment sits at 5.1 percent. While most graduate programmes remain in place, reduced cohort sizes and tighter budgets are having a clear impact.

Headline Findings from the NZAGE 2024 Survey:

• Survey responses included 299 interns, 885 graduates, and 43 employers.
• 53 percent of graduates applied for four or more roles.
• The average recruitment process lengthened from one to two months.
• One in five graduates didn’t apply for any graduate roles at all, progressing straight from internship to grad programme.
• Roughly 50 percent of candidates received more than one offer.

Employer reputation, salary, and culture remain the top factors influencing graduate decision-making. With pre-graduate recruitment pipelines playing a crucial role, many organisations are increasing intern-to-grad conversions. Some, including Watercare, have opted to fill all graduate roles from the intern pool, bypassing open recruitment.

Diversity and Targeted Promotion:

In 2024, NZAGE surveyed employers on their promotion to diverse groups:

• Active promotion to Māori and Pacific Peoples increased to 68 and 62 percent respectively.
• 28 percent of employers are now actively promoting to neurodiverse candidates.
• Word-of-mouth is the most trusted source of information for Māori and Pacific candidates, highlighting the importance of reputation and cultural authenticity.
• Common inclusive practices include allowing support people at interviews, support for interview preparation, and incorporating pōwhiri or mihi whakatau into onboarding processes.

Employers are also investing in cultural competency training for hiring managers and teams, reflecting a broader commitment to inclusive recruitment and retention.

Neurodiversity and Generation Z:

As awareness of neurodiversity grows, the survey highlighted that 53 percent of Generation Z identify as neurodiverse, compared to 38 percent of the global workforce. This suggests an urgent need for employers to embed inclusive practices into attraction, selection, and day-to-day work environments.

Use of AI by Candidates:

As in Australia, New Zealand candidates reported using AI tools primarily for writing and preparation tasks. A five percent increase was recorded in 2025 compared to the previous year. However, there remains a belief among employers that actual usage is higher than reported.

Confidence Gap Among Graduates:

A notable shift in candidate sentiment has emerged. In 2023, only 3 percent of graduates reported lacking confidence in the job market. In 2025, that figure has jumped to 15 percent. This drop in confidence, coupled with a slow employment market and rising cost of living, is likely to shape graduate expectations and engagement for the foreseeable future.

Conclusion: Building Strong Programmes in an Uncertain Climate

Both AAGE and NZAGE data confirm that early careers programmes remain a priority for employers, but external challenges are shaping how these programmes are delivered. Key strategies for maintaining programme strength include:

• Sustaining investment in structured development and flexibility.
• Prioritising authenticity and engagement throughout the candidate journey.
• Developing inclusive recruitment practices that go beyond policy statements.
• Using data to inform decisions on attraction, conversion, and candidate support.

While economic headwinds and resource constraints persist, the early talent sector continues to evolve. Maintaining strong programmes during uncertain times requires adaptability, consistent candidate care, and an ongoing focus on long-term workforce planning.

Remember to join our next NZAGE Forum Event on July 16th with Talent Solutions & FMCG, winners of the 2024 Best Innovation Award – the calendar link has been sent to NZAGE members – if you missed it email info@nzage.co.nz