Unemployment high despite rise in graduate vacancies

Graduate unemployment has hit a record high despite an increased number of graduate jobs becoming available.

The number of unemployed university graduates is at its highest since 1995 with an increase from 10.6 per cent to 20 per cent in graduates aged 21-24 years old.

The news comes despite an 8.9 per cent increase in graduate job vacancies reported by the Association of Graduate Recruiters. The Association is predicting a further 12.7 per cent rise in vacancies this year. 

Carl Gilleard, chief executive of The Association of Graduate Recruiters, told The Journal: “While this will not in itself have a major impact on graduate unemployment levels, it does suggest that the difficulties faced by new graduates have eased and will continue to do so, on the condition that business confidence is not damaged further. 

“It is also clear that this recovery process will be gradual and that at the same time the demand for jobs still greatly outstrips supply, with recruiters under intense pressure this year dealing with a huge number of applications. When the economy is depressed, those trying to enter the jobs market are most at risk, which is why we see relatively high unemployment rates for all young people including graduates.” 

Although one in five university leavers are currently unemployed, graduates still have a better chance of employment than non-graduates of the same age.

The average graduate salary is currently £25,000 and is expected to stay the same for 2012. However, some analysts are predicting that graduate salaries will rise in the next few years, as increased tuition fees will reduce the number of university graduates. 

Mr Gilleard said that nonetheless, competition will remain tough: “It is still important that [graduates] are able to set themselves apart from the crowd.

"Our advice to graduates is that they should try to gain as much workplace experience as possible, even if it is temporary or unpaid."