Concerns over graduate skills

More than half of the UK's top firms are concerned about a lack of basic skills such as reading and writing among university graduates.

A survey of more than 200 employers by the Association of Graduate Recruiters (AGR) found a general agreement that the nation was facing a skills shortage.

A majority expressed concern about a lack of "hard" skills, such as writing, literacy and leadership, while 55 per cent said a lack of "soft" skills, such as the ability to communicate effectively, was posing a serious problem for their business.

A significant proportion were also worried about low levels of knowledge in mathematics and IT.

Many were now dropping the 2:1 degree - the "gold standard" of selection criteria - as their main application requirement for graduate jobs, the research suggested.

One third were now asking for a 2:2 or above as well as other skills and work experience.

The increasing importance of life skills as well as academic skills and the need to widen the talent pool were reasons cited by employers for this change.

The AGR report also found that competition for jobs was intensifying, with an average of 30 graduates applying for each vacancy.

Fears that the credit crunch would force employers to reduce or abandon their graduate recruitment scheme proved unfounded, with the number of graduate level positions growing by 11.7 per cent on 2007's figures.

But salaries remained fairly static with the average for 2008 being £24,500, the survey found.

According to data published by the Higher Education Statistics Agency last week, graduates leaving full-time degree courses were earning an average of £20,000.

Carl Gilleard, chief executive of the AGR, said: "The results of the 2008 survey present a mixed picture; they are surprisingly positive in relation to the number of vacancies available with a respectable increase across the sectors and good predicted growth for 2009.

"However, although employers are still hiring, this year's survey shows the smallest rise in graduate salaries in recent years and in most cases employers will offer no more than a cost of living rise next year."

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