Belgian Graduates Struggle to Land Permanent Jobs

New data from HR services group Acerta reveals that highly educated graduates in Belgium are finding permanent employment significantly less quickly than in previous years. A fifth fewer young people under 25 started a permanent job within their first year after graduation compared to 2025, according to VRT NWS.

The Data Behind the Decline

Acerta’s analysis, based on a database of 450,000 employees at 30,000 companies, shows that only 0.49% of all permanent employment contracts in Q1 2026 were new contracts with workers aged 25 or younger — the lowest level in five years. Compared to Q1 2025, the share of new permanent contracts for workers under 25 declined by 18.84%, and compared to 2022, the number has decreased by 22%, as reported by #ZigZagHR.

The decline is strongest among workers aged 25 or younger compared to all other age groups, indicating that entry-level workers are bearing the brunt of the tightening labor market.

Growing Competition for Fewer Positions

Interest in vacant positions is growing significantly. For some government positions, four times more applicants are applying, and Belfius reports that 13% of all candidates are now under 25, up from just 5% in 2024. VDAB data confirms the trend, showing rapid growth in job seekers under 25: compared to 2022, this group has increased by 32.6%, while the 25-60 age group saw a 24% increase and those over 60 actually declined by 12.8%, according to Statistiek Vlaanderen.

A Western-Wide Phenomenon

This is not just a Belgian problem. According to Oxford Economics, there is now more unemployment among 22-27 year-olds with university degrees than in the overall labor market across the Western world. In Europe, there is no longer a difference between the unemployment rate of university graduates and their age peers — a significant shift from previous decades when higher education guaranteed better employment prospects.

Economic Stagnation and the AI Factor

Two major forces are driving the decline. First, Belgium currently has the lowest economic growth in the eurozone. This weak economic performance, combined with supply and demand dynamics, means there are more applicants for fewer jobs. Companies can therefore set stricter requirements, including demanding workplace experience that recent graduates — especially those from general university programs — do not have.

Second, artificial intelligence is increasingly impacting the labor market, particularly for entry-level positions. In sectors where AI will have a major impact, such as the financial sector, vacancies are declining by 31% year-on-year. Randstad research shows that globally, starter vacancies have dropped significantly due to AI automation of traditional junior tasks — in the Netherlands alone, the number of starter vacancies has fallen 29% since January 2024, with the tech sector down 35 percentage points and financial services down 24 percentage points, as reported by AI Wereld.

Florence Verplaetse, recruiter at Acerta, explains the dual pressures facing young job seekers: “It looks like young people are paying the price of important economic and technological trends. On the one hand, there is economic uncertainty due to geopolitical tensions, rising inflation and fluctuating energy prices. On the other hand, there is the rapid rise of artificial intelligence, which may lead to fewer entry-level jobs being available for young people because AI can take them over.”

Employers Not Prioritizing Graduates

Research from Robert Walters shows that only 8% of employers consider recent graduates a top priority in their recruitment strategy, and 42% say starters are not their first target group when filling vacancies, according to #ZigZagHR. Employers place more value on personal characteristics — 70% cite motivation and learning ability — than formal qualifications.

Jens Spittael-Speeckaert, Director at Robert Walters Belgium, notes: “It’s not that organizations don’t see value in graduates, but the focus today is often on candidates with a bit more experience. At the same time, we see that companies that consciously invest in starters are stronger in the long term, because they can develop and bind talent from the start.”

Salaries Continue to Rise Despite Challenges

Despite the difficulty finding jobs, starting salaries continue to climb. The average starting salary for workers under 25 has risen for the sixth consecutive year, from €2,114 gross per month in Q1 2021 to €2,596 in Q1 2026 — an increase of 22.8%. University graduates earn the highest starting salary at an average of €3,084 gross per month, while those with only lower secondary education earn €2,397 gross but saw the strongest salary growth at +32.7% since 2021.

However, Verplaetse cautions that a higher degree does not guarantee a well-paying job: “Those entering with a university degree in 2026 earn on average 687 euros more than someone with a lower secondary education diploma. But certainly not everyone earns the starting salary that corresponds on average to their education level, also not among university graduates. If only because it is not easy for many higher educated people today to find a job that matches their education level.”

Broader Labor Market Context

Belgium is simultaneously implementing major labor market reforms, including time-limited unemployment benefits introduced in January 2026. More than 99,000 people have already lost their unemployment benefits, with 53% applying for social assistance, as VRT NWS reported. This broader context of labor market tightening affects young people entering the workforce alongside more experienced job seekers.

Earlier Acerta research from 2023 also found that one in five young workers (21.3%) aged 20-25 left their employer despite having a permanent contract, according to Acerta. More recent data from Business AM shows the number of young workers leaving or being dismissed within their first year of service has risen by 16%.

What to Watch For

As Gen Z enters the labor market amid immense change, employers face a critical challenge. Sander van ‘t Noordende, CEO of Randstad, warns: “Gen Z has entered the labor market in a time of immense change. Although they have confidence in their skills and are ambitious for the future, they are confronted with technological disruption and economic uncertainty. Given the scarcity of talent, employers must take steps to better attract and retain young talent.”

The coming months will reveal whether the trend stabilizes as Belgium’s economy recovers and companies adapt their hiring strategies to integrate AI alongside human talent. For now, the data paints a clear picture: young graduates are entering a labor market that is fundamentally different from what their predecessors faced — one where a degree no longer guarantees a smooth transition into permanent employment.