Graduate unemployment rate at lowest level since 1989, shows study

The graduate jobs market is in 'robust' shape despite economic and political shocks last year, according to graduate careers firm Prospects

Some graduates are choosing postgraduate study as a safe haven from uncertainties such as Brexit (Getty)

The unemployment rate for graduates has slumped to 5.3 per cent - its lowest level since 1989, a study shows.

The jobs market for those leaving higher education is said to be "robust", while there has been a sharp rise in students taking postgraduate courses, said graduate careers firm Prospects.

Its research found that the number of graduates entering nursing, marketing, finance and computing has increased, while there were falls in medicine, teaching and engineering.

Charlie Ball of Prospects said: "The graduate labour market has held up well despite the economic and political shocks of 2016.

"Employers continue to recruit and need skilled workers, but some graduates are not behaving as they usually do in this kind of climate, they're turning to further study.

"This may be partly attributed to the new postgraduate loans system, but some graduates could also view further study as a safe haven, away from their fears of a Brexit downturn, which has yet to materialise.

"As a consequence, we have fewer graduates entering the jobs market than in the last two years, just when the labour market is robust and skills shortages are more serious than ever."

The graduate unemployment rate fell from 5.7 per cent last year.

PA