Graduate Job Vacancies Shrinking: Report

The number of job vacancies for graduates has fallen this year for the first time since the financial crisis, new figures show.

Positions fell by 8% to 19,732 according to the Association of Graduate Recruiters (AGR).

The annual study showed the construction, retail and engineering sectors were particularly hit.

Some employers said they were "repackaging" graduate posts as higher apprenticeships in response to the Government's drive to boost apprenticeship numbers, including a levy on companies and incentives to take on apprentices.

AGR chief executive Stephen Isherwood said: "The labour market for young people is shrinking for the first time since the financial crisis, but the composition of the market is also changing as employers invest more in school leavers programmes and apprenticeships."

Mr Isherwood said the uncertainty created by the Brexit vote was "the single biggest challenge facing recruiters in the year ahead".

He added: "Competition for skills and the looming apprenticeship levy are also significant concerns.

"While there remain thousands of vacancies available for university graduates, school leavers will find many more different options open to them for high quality jobs."

The figures come a day after recruiter Hays (LSE: HAS.L - news) said its UK and Ireland (Other OTC: IRLD - news) business weakened significantly in the wake of the Brexit vote and pointed to a tough market in the banking sector.

However official figures have given a brighter picture of the post-referendum employment landscape, showing a fall in the number of people claiming unemployment-related benefits in July.