Graduate recruitment market as buoyant as ever

Graduate level vacancies to rise by 12.7%
Expected median salary 23,500 ñ a rise of only 2.4%
Recruiters receive an average of nearly 30 applications per vacancy
A fall in concern over recruitment shortfall ñ over two-thirds expect to fill all vacancies

The recruitment market for graduates is continuing to thrive, according to research released today by the Association of Graduate Recruiters (AGR) at the organisationís annual conference.

The AGR Graduate Recruitment survey 2007, the UKís largest independent survey of the countryís leading graduate employers, reveals that vacancies for graduate level positions are anticipated to rise for the fourth consecutive year, by 12.7%. This is a significant increase on last yearís actual rise in vacancies of 5.2%.



Salaries for graduates entering the market in 2007 are predicted to increase by a modest 2.4%, to a median starting salary of 23,500. This suggests that, despite the large number of vacancies offered, recruiters are confident they will be able to fill these roles without offering excessive, above inflation salaries. In fact, the number of recruiters anticipating a recruitment shortfall has declined, with over two-thirds (68%) expecting to fill all their vacancies in 2007; 55% of respondents to the AGR Winter Survey earlier this year anticipated facing recruitment challenges in 2007.

The AGR Graduate Recruitment Survey is the definitive bi-annual barometer of the employment situation for graduates in the UK. The survey, carried out by trendence Institute for the AGR, is based on the responses of 219 AGR members ñ many of the UKís largest graduate recruiters in both public and private sectors. The research for this latest report was carried out during May and June 2007.

Carl Gilleard, Chief Executive, Association of Graduate Recruiters, comments, ìGraduates entering the market in 2007 can be optimistic about the opportunities available to them, with vacancies predicted to continue to rise. Although the salary increases predicted are fairly conservative, graduate salaries are already competitive in comparison to non-graduate entry level salaries. This reflects the added value that graduates are perceived to bring to an organisation.

ìEncouragingly, recruiters are more optimistic about any potential shortfall in filling their graduate level roles than they were earlier in the year. This perhaps indicates that graduates are realising that academic achievements are not enough to secure a position, and are focusing on developing softer skills such as team-working when applying for graduate-level positions.î

Vacancy Levels
Once again, accountancy and professional services provided the majority of vacancies (23%), followed by banking or financial services (12.2%) and engineering or industrial companies (9.3%).

The highest proportion of vacancies are available in London (43.3%), followed by the South East (13.3%), with only 43.4% based outside of these two areas. 49% of recruiters expect graduate recruitment levels to stay the same in 2008, and 28.9% expect to hire slightly more graduates next year.

Salaries
The highest paying roles are expected in banking or financial services, with a median starting salary of 37,000. This is followed by positions in investment banking and fund management (36,000), and law firms (35,700), where the medians starting salary has increased the most at 15.2% higher than last year.

Starting salaries are expected to decrease in London and East Anglia, by 5% and 14% respectively. Areas where increases are most notable are Wales (6.8%), the Midlands (5.6%), South West (4.8%) and Scotland (4.8%).

Applications
An average of 29.2 applications were received per vacancy by AGR employers, a slight increase on last year. FMCG companies received the highest number of applications; an average of 104 for each position.

With increasing competitiveness for the best talent, 64.1% of recruiters are asking for a 2.1 as a minimum qualification.

Despite previous concerns regarding the quality of applicants, 29.3% of those surveyed stated the quality of applications for 2007 was of a higher standard than last year; 57.1% felt the standard was similar. Only 13.6% believed the standard of applications was lower than in 2006.

Retention and Development
66% of those surveyed state that between 91% and 100% of recruits from last year are still with the organisation one year on, an increase on last year (64%). The most popular reason for leaving an organisation is an offer from a competitor (31.5%), followed by ëincompatibility of career goals with role in organisationí and ëpersonal reasonsí, both at 17.4%.

The AGR is the recognised national voice for all employers involved in graduate recruitment. With over 700 members, including a significant number of public and private sectors businesses, which collectively employ 20 per cent of the graduate market, the AGR represents those providing a high proportion of graduate vacancies in the UK and is increasingly involved with research in and around the recruitment needs of employers.