Graduate fears unfounded as job opportunites increase

Fears that the ever greater number of graduates coming out of university would leave many out of work are unfounded, according to new research from employment analysts Income Data Services (IDS).

Pay and Progression for Graduates 2006, a report based on information from 100 named graduate recruiters, found that the overall number of graduates employed by both private and public sector organisations rose by 7.2% in 2005.

The outlook looks equally bright for the coming year as employers are planning to increase their overall graduate intake by a further 6% in 2006 on the basis of current expectations.

However, the higher demand does not look like it will push up starting salaries. Pay packets being offered to first-degree graduates have only modestly increased.

Steve Tatton, editor of the report, said: "There seem to be enough jobs around for new graduates and employers can recruit candidates capable of producing future prosperity."

But the problem of graduates leaving university with the right skills is still a major worry, with 35% of employers saying graduates were lacking certain skills.

Nearly half of respondents said that "business awareness" was a major weakness among potential recruits.

The key findings of the report include: