A recent report from the Higher Education Statistics Agency states that unemployment rates for university graduates are much lower than in previous years. The annual survey, which tracks students six months after graduation found that 5.6% are out of work, compared with 6.1% the previous year.

However, as these are 2007 figures, the effect of this year’s economic downturn cannot yet be fully assessed.

Although we have seen a slight decrease in graduate scheme places in August, this research has not accounted for unofficial graduate level jobs based within SMEs.  Therefore, at this point it is difficult to estimate the impact on graduate recruitment but no doubt businesses will be nervously looking at ways to cut costs.  Despite this, I believe that graduate recruitment is one area where companies should continue to invest.

Steady flow of talent

I always explain to businesses just how important it is to maintain a steady flow of new talent into a business.  Without regular graduate intake, a company is risking its future business success. Companies need to be aware that this is predicted to be a short, sharp recession.  Therefore graduate recruitment should not be put on-hold; businesses must secure high quality future managers and talent within the business.  By continuing to recruit, businesses will be safeguarding their future; conversely, not doing so will put their business at a serious disadvantage.

Staff cuts

If staff cuts have to be made employers must decide where these are best made with regard to their long-term interests.  This apparently negative situation could potentially be used to streamline staff resources.  If cuts must be made then I would suggest looking at trimming high-waged middle managers, allowing for the continued introduction of fresh young talent into the business.

Having said this, graduates need to be aware that we are currently in a time where businesses are worried about the future and will undoubtedly be cautious regarding recruitment.  Many industries that took on large amounts of graduates this time last year have been hit hard by the recession; the investment banking industry for example. With this in mind, graduates need to manage their expectations and be less demanding of such industries.

I would highly recommend choosing a job role outside the financial sector but in a financial role, where a graduate can still use the relevant skills required for their career of choice.  Using the same skills and gaining relevant practical and professional experience means a graduate will be in a strong position to take a sideways step into their preferred industry once the recession has passed and companies begin to drive forward recruitment again.

Why graduates?

Businesses should continue to maintain a steady intake of graduate talent for various reasons.  Firstly, they are extremely good value for money; their salaries place less of a strain on resources than long-term, experienced staff. As well as this, they bring fresh ideas and talent into a company; something which is vital to maintaining momentum and ensuring future success. 

Graduates are also very open to change, which is important in a climate where a lot of company reshuffling and merging is occurring and adaptability is key.  During this period of change, it is important that businesses offer graduates some reassurance.  It is this perception of security and stability which could help attract the very best graduates.

Commercial suicide vs dead wood

Some employers may choose to freeze graduate recruitment as the economy stands still.  However, businesses must understand that this represents commercial suicide in the long-run.  Employers should be seeing this as a key time to invest in their future, not just thinking about the here and now.  Companies must continue to feed the recruitment pipeline in order to secure a stable future.   If anything, businesses should be getting rid of expensive, non-producing ‘dead wood’ if cut backs have to be made, rather than cutting off the supply of vital future talent.