AGR Summer Survey
by The AGR

AGR Summer Survey

• One in four graduate vacancies disappear
  
• Competition intensifies with an average of 48 applications for every job
  
• Quality of job applications is up as shaken grads sharpen up their act
  
• Average graduate salary remains frozen at £25,000

Graduate jobs have been cut by one quarter this year according to the Association of Graduate Recruiters (AGR). Vacancies have plummeted by 24.9%, approaching levels not seen since the last recession in 1991.

The picture painted is one of not only fewer jobs, but also of stagnant salary levels and much increased competition. Even the engineering sector has experienced vacancy cuts of over 40% and eight sectors have experienced reductions amounting to hundreds of recruits, with IT and banking worst hit. The only sector to buck the trend is energy, water or utilities with a 7.1% rise in vacancies. The vast majority of employers (91.9%) are expecting to fill all of their vacancies this year with recruitment shortfalls of previous years now a distant memory.

Carl Gilleard, Chief Executive of the AGR, said: “We cannot hide from the fact that dramatic vacancy cuts will make the job search very tough for graduates both this year and probably next year too. However, it is important to look at this in context and to point out that very few employers have abandoned their graduate recruitment programmes altogether and most are likely to reinstate recruitment levels at the first sign of an upturn in the economy.

“I would also like to reassure graduates that though things will be harder, their degree is a valuable asset and that there are still opportunities out there for those who do their research and focus on quality rather than quantity of applications. It is heartening to see many of our members reporting a marked improvement in the quality of graduate applications this year.

“One small consolation is that paid graduate internships have been relatively unaffected by the downturn and most employers are offering at least 10 placements. The Government’s new internships scheme, while not a panacea, will also help many graduates this autumn.”

The AGR is the independent voice of graduate recruitment in the UK and its bi-annual survey provides the most extensive and detailed insight into the state of the graduate jobs market. The Summer Survey is based on the responses of 226 graduate recruiters in the UK across 15 sectors who will employ a total of 12,650 graduates in 2009. The research was carried out by trendence in May and June 2009.

Salaries

The average graduate starting salary has frozen for the first time in the history of the AGR’s survey at £25,000. A majority of employers (57.7%) are offering graduate employees salaries of between £22,001 and £27,000 this year.

Dramatic cuts in vacancy levels have unsurprisingly translated into much greater competition this year with nearly half of employers receiving more than 50 applications for every graduate job.

Competition is particularly fierce in investment banking, banking or financial services, retail and engineering and the industrial sector, all of which received more than 50 applications per job.

Perhaps the most notable aspect of this year’s applications has been their improved quality. It seems this year’s graduates are taking particular care over their applications in the face of increased competition with 40% of employers reporting higher standards this year.