DECLARE @sql Nvarchar(max)

SET @sql = '<Data Extract>'
SET @sql = @sql + (SELECT Top 2 FirstName, LastName
FROM
[dbo].[CandPersonal] pe
INNER JOIN CandProfile pr on pe.CandId = pr.Id
WHERE pr.isGraduateApplicant = '1'
FOR XML PATH('Candidate'), ROOT('Graduates'))
SET @sql = @sql + (SELECT Top 2 FirstName, LastName
FROM
[dbo].[CandPersonal] pe
INNER JOIN CandProfile pr on pe.CandId = pr.Id
WHERE pr.isGraduateApplicant = '0'
FOR XML PATH('Candidate'), ROOT('ExperiencedHires'))
SET @sql = @sql + '/<Data Extract>'

SELECT @SQL

DECLARE @SQL NVARCHAR(MAX) = '<DataExtract><Graduates><Candidate><FirstName>Shaun</FirstName><LastName>Slabber</LastName></Candidate><Candidate><FirstName>paul</FirstName><LastName>devine</LastName></Candidate></Graduates><ExperiencedHires><Candidate><FirstName>paul</FirstName><LastName>devine</LastName></Candidate><Candidate><FirstName>Meera</FirstName><LastName>Bhana</LastName></Candidate></ExperiencedHires></DataExtract>'
select @SQL
select CAST(@sql as xml)