2004 shows rise in jobs for graduates

Conditions are improving in the graduate job market, with graduate vacancies set to rise by almost 12% this year, according to research published today.

According to the Association of Graduate Recruiters (AGR) recruitment survey for 2004, graduate positions are set to increase by 11.9% this year, following two consecutive years of reduced vacancies for graduates (6.5% and 3.5% in 2002 and 2003 respectively).

Graduate salaries are also increasing, with AGR-listed employers expecting to pay new graduates a median starting salary of £21,100 in 2004 – an increase of 3.9% on last year.

The smallest number of vacancies in 2004 are for graduate positions in marketing and human resources – both traditionally strong areas for student applicants. Accountancy, professional services firms, engineering or industrial companies, retailers, investment banks and the public sector, report the largest number of vacancies for 2004.

The number of AGR employers planning to pay initial bonuses to graduate recruits in 2004 has dropped from 32% in 2003 to 25% in 2004, according to the survey. The median bonus paid, however, has risen from £1,500 in 2003 to £2,000 in 2004.

Carl Gilleard, chief executive of the AGR, said: “I am pleased that the graduate jobs market is picking up after two lean years. It is good news for those seeking graduate level jobs in 2004 but there is no room for complacency. Competition for the best jobs will remain high and graduates need to be sure about what it is they have to offer employers and market themselves effectively.

“The government too will be encouraged by these results as they endeavour to win the argument on the value of investing in higher education. Starting salaries for graduate level jobs are increasing year on year, suggesting that employers remain convinced of the added value that graduates bring to businesses, both public and private.”

The AGR Graduate Recruitment Survey is a bi-annual barometer of the employment situation for graduates in the UK. The survey, carried out by High Fliers Research, is based on the responses of AGR's 600 members – which collectively account for 20% of the graduate market. The research for this latest report was carried out during December 2003.

(gmcg)