David Willetts

Responding to the Association of Graduate Recruiters’ winter recruitment survey, showing that graduate vacancies are expected to fall by five per cent in 2009, Shadow Innovation, Universities and Skills Secretary, David Willetts said:

 “This survey makes sober reading. Employers are feeling the pinch and cutting jobs as a result. This problem is made worse by the difficulty they face in finding graduates with the right skills. Today’s graduates face the twin challenges of fewer jobs and poor preparation for working life.

“We need to ensure that every young person has access to accurate labour market information to highlight where vacancies exist, as well as guidance to help them make the best possible education and career decisions. Ministers must also act to create opportunities for retraining. Young people must not become the victims of the recession.”

ENDS

Notes to Editors

1. The survey highlight the expected fall in graduate vacancies, as well as the persistence of skills shortages.

Skills still a problem. ‘The lack of applicants with the right skills or right qualifications…continues, it seems, to pose a considerable problem’ (Association of Graduate Recruiters, The ARG Graduate Recruitment Survey 2009: Winter Review, 11 Feb 2009):

· Over half (53.6 per cent) of employers ‘anticipate difficulties finding applicants with the right skills.’

· Almost half (42.9 per cent) of employers expect ‘a dearth of graduates with the right qualifications.’

 (Association of Graduate Recruiters, The ARG Graduate Recruitment Survey 2009: Winter Review, 11 Feb 2009)

Fewer vacancies. For the first time since 2003, graduate vacancies are expected to fall. The expected decrease for 2009 is 5.4 per cent. Some of the largest falls are predicted in sectors that are traditionally the biggest graduate recruiters. The investment banking sector, for example, is predicted to experience a 28 per cent fall in graduate vacancies.

(Association of Graduate Recruiters, The ARG Graduate Recruitment Survey 2009: Winter Review, 11 Feb 2009)

Economy to blame. Almost two thirds of the organisations expecting to recruit fewer graduates in 2009 blame the downturn, ether directly (34.7 per cent) or indirectly (29.7 per cent).

2. The Conservatives have proposed several measures that would help people find work, as well as maintain and update their skills. These include:

· All age careers service. A one-stop shop for comprehensive, professional advice and guidance.

· Adult learning. A £100m community learning fund for much-needed courses to help people update or gain new skills. This will be particularly valuable for people trying to return to work after time out.

· Liberalisation of JSA rules. Conservatives are calling on the Government to relax the rules on allowing unemployed people to take up training opportunities whilst claiming Jobseeker’s Allowance to allow the newly unemployed to reskill and find new work as soon as possible.