Graduates face tighter job market

Citation

(2003), "Graduates face tighter job market", Education + Training, Vol. 45 No. 8/9. https://doi.org/10.1108/et.2003.00445hab.004

Graduates face tighter job market

Graduates face tighter job market

The latest graduates face a tighter job market, according to figures released by the Association of Graduate Recruiters (AGR). A survey of some of the UK’s leading employers reveals a 3.4 per cent drop in UK graduate-level vacancies this year compared with the numbers of graduates recruited in 2002, reflecting the current cautious economic climate. Along with this fall in vacancies, the survey indicates increased competition for graduate jobs in the UK. Employers received an average of 42.1 applications for every graduate vacancy during the 2002-2003 recruitment year, compared with 37.2 applications per vacancy in 2001-2002. The median graduate starting salary, however, climbed to £20,300, an above-inflation rise of 4.1 per cent on 2002. The outlook for 2004 suggests that both salaries and vacancies will remain fairly stable.

The survey is based on the responses of AGR members – many of the UK’s largest graduate recruiters in both public and private sectors. Carl Gilleard, AGR chief executive, comments: “This survey shows that graduate-level vacancies are stabilizing somewhat – the modest falls in vacancies this year and last need to be balanced against the large rises we saw in previous years. This is definitely nowhere near a crisis comparable to the situation in the early 1990s … One very positive piece of news is that starting salaries have continued to rise, with the median salary having well and truly broken through the £20,000 barrier. And, looking back, starting salaries have more than doubled in the last 15 years. Although it is important to bear in mind that we are talking about graduate-level jobs offered by some of the UK’s larger businesses, the scale of the survey, covering almost 200 organizations in the public and private sectors, suggests that it is fairly representative of the market as a whole”.

In total, UK employers have reduced the number of vacancies on offer to graduates by 3.4 per cent in 2003, but vacancies have not fallen across the board. While 42 per cent of employers surveyed are reporting a drop in vacancies, more than a third (36 per cent) have increased their vacancies in 2003 and 22 per cent are recruiting the same number as in 2002. Not all sectors are affected in the same way. Some, such as construction and transport and logistics, are expanding their intake, but others, including investment banking and oil companies, have cut back.

Employers predict a stable outlook for 2004. In terms of vacancies, 17 per cent of employers are predicting increased levels, 52 per cent are expecting similar vacancies to 2003 and 14 per cent are anticipating a drop in vacancies or no recruitment next year. A third of employers are expecting to hold salaries at 2003 levels, 46 per cent are expecting to apply a cost of living rise of up to 2.5 per cent and 48 per cent anticipate increases of more than 2.5 per cent. The AGR survey indicates that work-experience placements remain popular with employers. Nearly three quarters (73 per cent) of employers surveyed are offering some form of work placements for undergraduates in 2003-2004.