Although the UK is officially out of recession and fragile signs of recovery are beginning to emerge, 2010 is set to be another difficult year for graduate jobhunters. New research from Alexander Mann Solutions (AMS), a leading provider of recruitment process outsourcing, has revealed that competition for places among university leavers is set to be tougher than ever this year.

The study, entitled: The Emerging Talent Index, found that of the students that graduated from university in 2009, just 24% have been working in a role that requires a degree since leaving university. This has led more than half of graduates from 2009 (53%) to say they will be joining the hunt for graduate jobs again this year, alongside the class of 2010. 63% of those set to graduate in 2010 are also applying for graduate roles (compared to 50% of recent graduates in 2009), leading to far greater competition for positions than in previous years.

Understandably, this increased competition seems to have hit 2009 and 2010 graduates’ confidence. Only 26% of those surveyed said they were confident of finding a graduate position at some point in 2010. 2009’s graduates, perhaps because of their experiences last year, are the least confident; just 22% are confident of finding a graduate position this year. 

These low confidence levels seem to have had a serious affect on graduates’ approach to job hunting. One in five (18%) of 2009 graduates have said that they are currently applying ‘for any job’, suggesting that many university leavers have become increasingly desperate during the downturn. The majority of graduates were found to be broadening their approach. 59% of 2009 graduates are applying for roles across a number of sectors and just 37% of all respondents are limiting their applications to positions which tie-in with their long-term career goals.

The trend is not limited to the applications stage of the process. The lack of confidence in today’s graduate marketplace means that jobseekers are increasingly likely to formally accept multiple offers and then make their final decision just before their joining date. Two thirds (64%) of graduates surveyed admitted that they would hedge their bets by accepting more than one job offer: either by picking their preferred option nearer the time or accepting an offer and continuing to look for an alternative.

This is, perhaps, understandable in the economic climate but it represents a real challenge to employers. Organisations must factor in this kind of behaviour and ensure their strategy will not be adversely affected by applicants dropping out late in the day.

AMS’ graduate specialists have also noted that the rise in the quantity of applications has not brought a rise in quality. University leavers seem to be adopting a ‘hit and hope’ approach. Many jobseekers are just applying for as many positions as possible rather than carefully targeting the roles that are right for them. This type of approach can create major problems for employers. Businesses looking to hire graduates need to ensure that they have the processes and scalability in place to deal with the high volume of applications, without compromising on the human touch that is essential when looking to attract the best young talent. This is by no means an easy feat.

The Emerging Talent Index also asked graduates which sectors they perceive as offering the best opportunities to university leavers. The public sector was identified as the area that offers the best opportunities, with nearly a third (30%) ranking it as the top sector. The fact that graduates still consider the public sector to be an attractive destination for university leavers, despite the current economic and political uncertainty, is certainly encouraging for employers in that sector. 

The ability to attract the best graduates is a crucial advantage for any organisation and something that will be vital if the public sector is to successfully manage the changes  facing it over the next few years.

More worrying is the damage that the recent economic crisis has had on employer brands in the banking and financial sector. Financial services and banking were ranked as the worst destination for graduates by 28% of respondents. Employers in this industry have been scrutinised heavily in the last 18 months and this is a clear sign that this controversy has had a negative impact on the industry’s reputations among graduates. Businesses in this sector will be able to repair their brands over time, but should be a great concern to organisations that have traditionally been very attractive to university leavers and steps should be taken immediately to restore their standing.

While the economic is undoubtedly creating difficult conditions for graduate jobseekers, the findings of the Emerging Talent Index show that the increased competition is not necessarily all good news for businesses looking to recruit the best talent entering the workforce. Employers need to make sure that their resourcing teams have the tools and flexibility required to handle a sudden rise in applications without a drop in the quality of the service they provide.