- Employers estimate 9% increase in graduate vacancies
- Average graduate starting salary predicted to rise to £26,500
- Apprenticeship and school leaver programmes complementing, not replacing, graduate schemes
The number of graduate vacancies is predicted to rise by 9% in 2013 according to the Association of Graduate Recruiters (AGR), which published the winter edition of its bi-annual survey today (Thursday 24 January).
This predicted growth follows a dip of 8% recorded in 2012, and a repeat of the push-pull pattern the AGR saw a couple of years ago, whereby vacancies fell by 9% in 2009 and then increased by the same amount the following year.
Furthermore, the mean number of vacancies per employer, which has remained relatively stable over the past four years, is forecast to see a substantial growth according to AGR members. It is predicted this will increase from an average 98 vacancies per employer last year to 109 in 2012-2013 – a further positive sign for the graduate jobs market.
Carl Gilleard, Chief Executive of the AGR, said: “The results indicate a renewed level of optimism among organisations for the year ahead. With the graduate job market inextricably linked to business confidence, it is reassuring to see that employers are committed to investing in graduate talent despite the backdrop of continuing global economic uncertainty.”
The average starting salary rose by 4% to £26,000 last year, following three consecutive years of stagnation (staying at £25,000 from 2009 - 2011), and it is predicted this will continue to increase, with a further rise of 2% anticipated. This would bring the average starting salary for graduates to £26,500.
Gilleard continued: “It is encouraging to see the starting salary rise and the prediction it will continue to increase this year to £26,500, following three years of standstill.
“I appreciate that businesses, ever more so in the current climate, need to think very carefully about where to invest, and believe that, where graduate schemes are concerned, you really do get out what you put in. The difficult economic climate means that the ‘war for talent’ is more important than ever before, as organisations look to recruit and retain people who will give them a competitive edge, and we believe the continued rise predicted in starting salaries is a reflection of this.”
During a series of follow up interviews, to capture qualitative information, respondents were also asked about the impact that apprenticeship and school leaver programmes were having on graduate vacancies. The majority said that these were for different job roles within the business and were not a substitute for existing graduate roles and therefore it did not impact the number of graduates they were recruiting. Employers offered several reasons for introducing alternative talent programmes, including competition from other employers seeking to recruit talented school leavers and potential impact of tuition fees on graduate talent pool in future years.
The AGR is the leading voice of graduate recruiters and developers and its bi-annual survey provides the most extensive and detailed insight into the state of the graduate jobs market. Today’s edition is based on the responses of 197 AGR members in the UK across over 20 sectors, which recruited 19,350 graduates in 2012. The research was carried out by research specialists CFE during November 2012.
The AGR Graduate Recruitment Winter Survey 2013 also contains the latest statistics on graduate vacancies and salaries by business sector, career area and region.
