The market is tightening at the bottom and demanding more at the top. Across the UK, entry-level job postings have dropped 30% since ChatGPT launched, and graduates are facing the toughest job market since 2018, according to Adzuna data reported by techUK. That squeeze is not confined to tech. A government snapshot found entry-level hiring in Engineering has fallen to -19% while senior hiring sits at -10%, a nine-percentage-point gap, per GOV.UK's entry-level hiring snapshot.
The wider graduate picture is sharper still. The UK tech sector cut graduate jobs by 46% in the past year, with a further 53% drop projected, according to figures from the Institute of Student Employers reported by The Register. When the traditional graduate route narrows, firms need another way to bring new people in. That is where apprenticeships come in.
Demand in financial services is skewing towards experience and higher qualifications. In the Financial Services sector, recruitment was generally for Regulatory Qualification Framework (RQF) 6+ roles rather than RQF 3 to 5, according to GOV.UK's Temporary Shortage List Stage 2 report. In plain terms, firms are chasing degree-level and above, which crowds out the junior positions that once gave people their first step.
That pattern creates a gap. If the open roles sit at RQF 6+ but fewer people are coming through entry-level and graduate doors, the pipeline into those senior roles thins out over time. Apprenticeships close that gap by letting firms train people up through the exact qualifications the sector asks for, rather than waiting for ready-made hires who are already in short supply.
Apprenticeships are growing fast where hiring is hardest. In AI roles, apprenticeships have risen from 3% of hires in 2020 to 19% in 2025, according to GOV.UK and DSIT's AI Labour Market Survey 2025. That shift shows employers using apprenticeships to build scarce, technical skills in-house rather than competing for a small pool of experienced candidates. Finance faces the same dynamic, and the same lane is open.
The advantage is control. You decide the skills, the qualifications and the culture someone grows into. You build loyalty early, you widen the pool to people who never took a traditional degree route, and you develop talent that maps directly to the RQF levels your roles demand. In a market where senior candidates are scarce and graduate routes are shrinking, growing your own is the practical answer.
Start with the end role in mind. Map the RQF level and the competencies a position needs, then work backwards to what an apprentice should learn in year one, year two and beyond. Write the job around potential and attitude, not a long list of must-haves, so you reach people who can grow rather than only those who already fit.
Done well, an apprenticeship pays back twice: you fill today's gap and build tomorrow's senior hire. The firms that act now, while the lane is open, will have the skills ready when demand for RQF 6+ talent only climbs.
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