Graduate job vacancies set to fall

Graduate job vacancies are set to drop for the first time in six years due to the uncertain economic climate.

The number of jobs available to students fresh out of university is predicted to fall by more than five per cent according to a survey by the Association of Graduate Recruiters (AGR), which represents hundreds of the UK’s big employers in the private and public sphere.

Some sectors are to fair worse than others, with recruitment in banking set to fall by almost a third. However, the fast-moving consumer goods sector—high-demand, low-priced products—is set to buck the trend, with job vacancies predicted to grow by around 13 per cent.

The public sector also anticipates a rise in jobs, with opportunities expected to increase by three per cent.

Carl Gilleard, Chief Executive for the AGR, aims to reassure 2009’s graduates that the circumstances are not as bad as they may appear: “Though we are set to see a drop in vacancies this year, the situation is certainly not as severe as it could be.

“We saw a sharper decline in 2003, for example, when recruiters had a negative reaction to the dot.com crash. By in large, while no one doubts the seriousness of the current economic downturn, the picture for graduate recruitment, though worrying, could be bleaker,” said Mr Gilleard.

The predicted downturn is not predicted to be as severe as in 1991, when vacancies fell by a third.

More than half of the job cut backs are located in London and the South East of England, with the Midlands accounting for 10.5 per cent and 5.2 per cent in Scotland.

Despite the drop in vacancies, employers have advised graduates against undertaking further study unless they are sure it will enhance their employability. Instead they recommend taking up temporary paid employment until they are able to secure their ideal job.

Wes Streeting, president of the National Union of Students, said: “It is clear that the current economic conditions will make it more difficult for this year’s graduates to enter the job market. This will be a huge worry to students who are now racking up record levels of debt before they graduate.”

NUS urged students to "do their research, apply early and be prepared to be flexible with their plans."