Graduate job competition hots up

More than a third of new graduate jobs this year will go to students who have already worked for the employer – a record high – as competition for positions ratchets up, an analysis has shown.

The class of 2012 is set for further misery as a third of applications for graduate posts have come already from those who left university last summer or earlier, the study from High Fliers Research showed.

A fifth of employers said application levels had soared by at least 25pc, the research revealed.

However, the number of graduate vacancies is expected to rise by 6.4pc this year, up from the 16,408 university leavers recruited in 2011, the analysis of 100 graduate employers showed.

The forecast is much higher than last year's 2.8pc increase, although it is subject to change as companies revise recruitment targets throughout the year, and still remains 6pc below pre-recession levels.

An extra 50,000 graduates are set to leave university this summer compared with five years ago, suggesting the scramble for placements will intensify.

Employers have already received 19pc more graduate applications for roles compared with last year, meaning opportunities are dwindling for those who have not yet applied.

More than half of the recruiters warned graduates with no previous work experience had "little or no chance" of landing a job this year.

Worryingly, separate research today shows one in four recent graduates has turned down a job offer because they felt they were over-qualified or the role wasn't suitable. The poll of 450 graduates, carried out by Network Rail, comes as the rail operator launches an 18-month placement scheme.

Investment banking applications have grown by 9pc year-on-year, High Fliers said, suggesting the sector is shaking off the impact of "banker bashing" in the UK. But the report showed three quarters of investment bank graduate jobs will be taken by candidates who have completed industry placements.

In a move which appears to contradict the Government's recruitment freeze, the public sector is planning to expand its graduate intake by 21.9pc this year, an increase of 500 roles year-on-year.

The engineering, IT, high street banking and retail sectors are also expecting substantial rises in graduate jobs compared to last year, with the "Big Four" accounting firms among the largest graduate employers, taking on almost 4,000 roles between them.

But in a further sign the labour market remains flat, graduate starting salaries will stay at about £29,000 for the third consecutive year.

Elsewhere, a report showed the labour market has been "contracting". The number of permanent vacancies declined for the third consecutive month in December, a survey from the Recruitment and Employment Confederation and KPMG showed.

In brighter news, a report from Monster, the jobs website, showed a 6pc rise in roles advertised online over the past year, with skilled workers in more demand.

Source: Louisa Peacock, Telegraph.co.uk, Wednesday 11th January 2012