‘Jobs bottleneck’ as graduates struggling to find work creates backlog

By
Sarah Harris

Last updated at 9:19 AM on 11th January 2012

One in three applications for this year’s graduate vacancies are from students who left higher education in 2011 or earlier as they struggle to find work, a new report warned today.

And almost half of applicants for retail and public sector roles in 2012 are past graduates, according to the annual study from High Fliers, an independent market research company.  

On average, there have been at least 48
applications per graduate vacancy, which means that tens of thousands of
university-leavers face disappointment in the job market this summer.  

Bottleneck: One in three applications for this year's graduate vacancies are from students who left higher education in 2011 or earlier

Bottleneck: One in three applications for this year’s graduate vacancies are from students who left higher education in 2011 or earlier

To compound the problem, this year’s graduates have been warned that they stand ‘little or no chance’ of landing well-paid jobs with leading employers if they do not have any work experience, whatever their degree class. 

The gloomy findings could further deter future students from higher education amid the prospect of spiralling levels of debt. 

Figures from Ucas already show that
over 23,000 fewer British students have applied for degree courses
beginning this Autumn as fees are tripled to as much as £9,000-a-year.  

The High Fliers’ report, The Graduate
Market in 2012, examines graduate vacancies and starting salaries at 100
of the UK’s most successful employers including Procter Gamble,
Rolls-Royce, Sainsbury’s, Boots and Unilever.  

It reveals that employers are expected
to increase their graduate recruitment by 6.4 per cent this year.
Almost half plan to employ more graduates in 2012 while over a quarter
aim to maintain their intake at 2011 levels.

Gloomy prospects: The unemployment rate among graduates has hit its highest level for more than a decade

Gloomy prospects: Graduates have been warned that they stand ‘little or no chance’ of landing well-paid jobs with leading employers if they do not have any work experience, whatever their degree class

However, bosses have received 19 per cent more graduate job applications so far, compared to the 2010-11 recruitment round. A fifth of employers say applications have risen by more than 25 per cent.

The biggest demand is for consultancy jobs which have seen a 75 per cent leap in applications.  

Some organisations have already closed off the application process for 2012 positions even though the termination date is usually in the summer.

The report says some employers had opened up their applications earlier which could have ‘contributed to a much higher volume of early applications from students and recent graduates’.

It adds: ‘Other recruiters felt that a backlog of graduates from previous years who were still looking for work and applications from postgraduate students was contributing to their bumper crop of applicants.’

Meanwhile, a record 36 per cent of this year’s graduate vacancies are expected to be filled by applicants who have already worked for the organisation during their studies.

More than half of recruiters warned that graduates who had no previous work experience at all were ‘unlikely to be successful’ and had ‘little or no chance of receiving a job offer’ on their graduate programmes.  

Martin Birchall, managing director of High Fliers Research, said the ‘backlog’ of graduates has been building up for a number of years.

He said: ‘It was made much worse by the recession, but if you look at the graduate market as a whole there are somewhere between 150,000-160,000 graduate level vacancies each year.

‘This year we’re on course for about 330,000 graduates to leave university. Inevitably, in recent years, tens of thousands of people who wanted a graduate job didn’t find work.

‘Many chose to go off and do further study or go travelling. But eventually all of them will have to come back and find a job. That does cut down the number of places available for the class of 2012.’

He added: ‘In a highly competitive graduate job market, new graduates who’ve not had any work experience at all during their time at university have little hope of landing a well-paid job with a leading employer, irrespective of the academic results they achieve or the university they’ve attended.’

 

Here’s what other readers have said. Why not add your thoughts,
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The comments below have not been moderated.

That’s what happens when you get a degree in ‘Twitter Translation’

I don’t think it is accurate to say that graduates do not have the skills required, the problem is greater than that. Graduates are doing the right thing to educate themselves. With the exception of specialist niche roles a lot of office roles can be filled by people with transferable skills, but these aren’t considered because job specs are becoming very strict and demand an exact match. Talent is no longer appreciated over tailored robots to fill a job spec. Employers may like to have candidates with intuition, but in reality they are rarely given the opportunity. A high proportion of roles are outsourced to agencies who are in business to make quick and easy commission, and often themselves don’t understand the markets they are recruiting for. There are so many jobseekers in the market that salaries can be reduced, and still filled, resulting in little disposable income which stagnates the economy. I totally agree that the level of grammar is disappointing in many groups.

Zero sympathy for anyone who has done one of these mickey mouse degrees but what about the others? I was lucky enough to secure a job before the end of my final year and started the day after i handed in my dissertation, 12k for a science degree, it was either that or risk being unemployed for 6-12 months. Have been able to negotiate a pay rise since then but a recent job spec i have just received for a similar role wants a degree two years experience and is only paying 15k, funnily enough i have more education and relavant experience than most of the people above me getting paid 30k + whos generation landed us in this mess in the first place. My point is i earned more picking fruit in the summer holidays to pay my course fees than i did in my first year of being a graduate despite being told that 9 out of 10 graduates on that degree course go on to earn 20k+ in their first year. Looking back at my school year its the ones who couldnt pass thier GCSE’s that are earning 1k a week.

As well as there are limited jobs out there, the other major factor is the quality of their education, so many kids choosing subjects that has little or no advantage to them when applying for jobs, the key subjects are put aside because of ‘hobbies’ and ‘fun’ subjects, which most employers would take one look and shakes their head in disgust, we were brought up on core value subjects, one of my brother studied Chemistry and went to Oxford, even before he finished, there were 6 companies offering him jobs, another brother studied pure Maths and he now work for a global bank, I studied computing and been working for a global IT company since leaving university, parents and teachers should pay more attention to children’s education, and the government should demand that all children take up the more important core subjects such as Maths, English and science, Labour’s 5000+ different degrees may make results look great, but in real life, like most things Labour do, its only for shows.

Not enough guidance is given for chosen course or career.

– Kuri, Oxshott, 11/01/2012 07:23
Good point, but there’s no point in doing an engineering or science degree if you have no natural aptitude or interest in the subject. That’s also a decision that would have to be made at 16, to ensure the appropriate A-levels are taken.
Internships, meanwhile, exploit those who can afford to work for free and exclude those who can’t afford to work unpaid for up to three months, often in an expensive city like London with only travel reimbursed.

I have just paid £6000 to do an MA in a more specialised area after very quickly realising my undergrad degree was basically worthless, despite me being told for 3 years I was gaining all sorts of skills that employers are looking for. People I know who graduated 3 or 4 years ago still do not have graduate jobs. I am told this MA will make me so much more likely to get a graduate job – but if not, I have wasted 6k. Which I saved by working 28 hours a week as an undergrad and living at home. Not exactly living the party lifestyle that nearly all students are being branded with. Still, I guess I will be able to add a couple of sentences to my CV when I’ve completed this 2nd degree.

My course was four years and during those four years I managed to get work experience for all the time that I was not at Uni. Ive now got about 3years experience plus my four year plus working two jobs a week and I did this purposely as I knew that my line of work is one of the most competitive. Never the less even now i am still struggling to even get internships after being told that I still don’t have enough experience or i have TOO MUCH experience, either way it is a very hard battle to win against. But if you seem to remember the student protests were related to this and the Government had planned for more internships and apprenticeships to be introduced rather than lowering tuition fees.

As many full time degree courses include up to a “12 month work experience” section, how are so many graduates deemed to have “no work experience”? Isn’t the point of a degree qualification to prove one has a desirable level of education, which will benefit any potential employer because the staff are “qualified” by virtue of said degree? These recruiters are the biggest part of the problem – they need to be warning the employers that every new employee requires a certain level of on the job training, regardless of their experience. This is lazy, cost-concious recruiting, looking for only people who have the degree and relevant experience, so avoiding any form of investment in staff. What an absolute disgrace these people are….

Surely it is well past time for a change. Get rid of all the expensive and useless degree courses (criminology, sociology, media studies, etc.) for which there is no call and no jobs. Then set up a properly funded apprentice scheme, where people receive training to actually do a job.

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