Fewer jobs fear for graduates

Vacancies for graduates are set to fall for the first time in five years because of the recession - and those finding a job will face lower salaries, new research has revealed.

Vacancies for graduates are set to fall Vacancies for graduates are set to fall

The Association of Graduate Recruiters (AGR) predicted a 5.4% fall in vacancies this year and said some employers will cut pay by up to 8% or freeze wages as a result of the economic downturn.

The report, ahead of new unemployment figures expected to show another big jump in the jobless total, was in sharp contrast to last summer when when firms were predicting that vacancies for graduates would increase by at least 11%.

Research among 245 graduate recruiters showed that half of organisations expected to hire fewer graduates this year, mainly because of the economic climate.

Investment banking and construction were the most pessimistic sectors, with vacancies expected to fall by 28% and 16% respectively, but there was better news in the public sector where a 3% increase is predicted in 2009.

Carl Gilleard, chief executive of the AGR said: "Last summer our members predicted an optimistic growth in vacancies of over 11%. Soon after that we saw a series of catastrophic events in the financial sector with serious consequences for many other sectors such as construction. It comes as no surprise that these seismic shifts in the economy are being mirrored to some extent in the graduate jobs market. The predicted rise in jobs in 2008 simply did not occur.

"While no one doubts the seriousness of the current economic downturn, the picture for graduate recruitment, though worrying, could be bleaker. There are even some silver linings with growth predicted in the engineering and public sectors - both of which are likely to appeal to graduates seeking job security this year."

Higher Education Minister David Lammy said: "There are still jobs out there for graduates and going to university is still and always will be a good investment in your future career. As the report points out even this year there will be more vacancies in areas such as engineering, public services and law.

"To provide extra help to those who need it, we are in discussions with employers, universities and colleges to see how we can work together to ensure that graduates get some experience of work and chance to show what they can do."

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