Graduates face 4% drop in demand

GRADUATE recruitment will have fallen by nearly 20 per cent in two years when the new intake starts work later this year, according to research published today.

The slump in demand for degree-holders seems to be levelling off - 4 per cent lower than last year compared with a 15 per cent drop in 1991 - but job prospects remain bleak, the top pay unit of Incomes Data Services reports. This year, a record 163,00 students will enter the market - nearly 10 per cent more than last year.

Graduates, however, can expect starting salaries 3 per cent above last year's - marginally more than the inflation rate. Those taking up jobs with a major employer in the private sector will receive an average pounds 13,450 compared with pounds 12,600 in the public sector.

The IDS report Pay and Progression for Graduates says that more than 90 per cent of the 100 major employers covered were pleased with the quality of candidates in 1992, although some argued that an increasing college output had not been matched by a rise in quality.

Among the complaints were that new graduates lacked analytical abilities, persuasive skills and the ability to communicate.

With the Department of Education pointing out that only 38 per cent of last year's graduates found permanent employment, IDS reports that graduates are clinging on to jobs once employed.

The top pay unit found a wide variation in recruitment. While the Ford Motor Company has virtually suspended its intake after employing 128 last year, Nestle, Royal Insurance and British Sugar plan to increase job opportunities.

In 1992, basic starting salaries for first degree graduates ranged from pounds 8,500 at Applied Environmental Research Centre, to pounds 17,850 at Andersen Consulting. However, the vast majority were grouped around the median of pounds 13,000. About 90 per cent of employers paid starting salaries between pounds 11,000 and pounds 15,000.

It was found that even in the present recession, some companies were encountering recruitment problems, especially in engineering and production.

The highest additional payments for postgraduate qualifications were made by chemical and pharmaceutical companies engaged in scientific research. The highest salary for PhD graduates was pounds 21,000 at the pharmaceutical group Roche Products.

Some firms pay a substantial premium for a doctorate. Albright & Wilson paid pounds 13,500 for a graduate and pounds 16,500 for a PhD.

Pay and Progress for Graduates, IDS, 193 St John Street, London EC1V 4LS.

Twilight zone, page 21

Start your day with The Independent, sign up for daily news emails
Have you tried new the Independent Digital Edition apps?
ebooks
ebooksAn introduction to the ground rules of British democracy
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Recruitment Genius: Sales Executive or Senior Sales Executive - B2B Exhibitions

£18000 - £30000 per annum: Recruitment Genius: A Sales Executive or Senior Sal...

Recruitment Genius: Head of Support Services

£40000 - £55000 per annum: Recruitment Genius: This is an exciting opportunity...

Recruitment Genius: Warehouse Team Leader

£22000 per annum: Recruitment Genius: This industry leading company produces h...

Recruitment Genius: Business Development Manager / Sales - OTE £40,000

£20000 - £40000 per annum: Recruitment Genius: This IT provider for the educat...

Day In a Page

A nap a day could save your life - and here's why

A nap a day could save your life

A midday nap is 'associated with reduced blood pressure'
If men are so obsessed by sex, why do they clam up when confronted with the grisly realities?

If men are so obsessed by sex...

...why do they clam up when confronted with the grisly realities?
The comedy titans of Avalon on their attempt to save BBC3

Jon Thoday and Richard Allen-Turner

The comedy titans of Avalon on their attempt to save BBC3
The bathing machine is back... but with a difference

Rolling in the deep

The bathing machine is back but with a difference
Part-privatised tests, new age limits, driverless cars: Tories plot motoring revolution

Conservatives plot a motoring revolution

Draft report reveals biggest reform to regulations since driving test introduced in 1935
The Silk Roads that trace civilisation: Long before the West rose to power, Asian pathways were connecting peoples and places

The Silk Roads that trace civilisation

Long before the West rose to power, Asian pathways were connecting peoples and places
House of Lords: Outcry as donors, fixers and MPs caught up in expenses scandal are ennobled

The honours that shame Britain

Outcry as donors, fixers and MPs caught up in expenses scandal are ennobled
When it comes to street harassment, we need to talk about race

'When it comes to street harassment, we need to talk about race'

Why are black men living the stereotypes and why are we letting them get away with it?
International Tap Festival: Forget Fred Astaire and Ginger Rogers - this dancing is improvised, spontaneous and rhythmic

International Tap Festival comes to the UK

Forget Fred Astaire and Ginger Rogers - this dancing is improvised, spontaneous and rhythmic
War with Isis: Is Turkey's buffer zone in Syria a matter of self-defence – or just anti-Kurd?

Turkey's buffer zone in Syria: self-defence – or just anti-Kurd?

Ankara accused of exacerbating racial division by allowing Turkmen minority to cross the border
Doris Lessing: Acclaimed novelist was kept under MI5 observation for 18 years, newly released papers show

'A subversive brothel keeper and Communist'

Acclaimed novelist Doris Lessing was kept under MI5 observation for 18 years, newly released papers show
Big Blue Live: BBC's Springwatch offshoot swaps back gardens for California's Monterey Bay

BBC heads to the Californian coast

The Big Blue Live crew is preparing for the first of three episodes on Sunday night, filming from boats, planes and an aquarium studio
Austin Bidwell: The Victorian fraudster who shook the Bank of England with the most daring forgery the world had known

Victorian fraudster who shook the Bank of England

Conman Austin Bidwell. was a heartless cad who carried out the most daring forgery the world had known
Car hacking scandal: Security designed to stop thieves hot-wiring almost every modern motor has been cracked

Car hacking scandal

Security designed to stop thieves hot-wiring almost every modern motor has been cracked
10 best placemats

Take your seat: 10 best placemats

Protect your table and dine in style with a bold new accessory