Graduate unemployment has doubled in the past year with degrees no longer automatic passports to the top jobs — or, indeed, any job. Nine months after leaving, 6.3% of last year’s graduates remained unemployed, up from 3%.

In 2008, the worst rate of graduate unemployment was 8.7% at Letterkenny Institute of Technology; this year, the highest was at IT Sligo, where 23% were still looking for work nine months after leaving, compared to just 3.3% a year ago.

This sharp escalation in graduate unemployment, with four ITs topping 10% and even Trinity College Dublin registering a 9% unemployment rate this year, is prompting students to consider their course options more carefully and even to desert some subjects whose commercial prospects might currently look bleak.

Career experts say, however, that second-level students should consider medium- and long-term prospects, rather than focus on the present economic climate, when choosing their higher-education course.

John McGrath, head of research at Fas, the state training agency, says: “Students need to be informed of the medium term, not the short term. It’s about medium- and long-term sustainability, not what’s flavour of the month.”

CAO trends show that students are avoiding construction-related courses while many are going towards careers in the public sector, though that may not be the safe option it once was.

“Things have changed,” says McGrath. “Construction, and related sectors such as property and conveyancing law, have contracted. We have a lot of solicitors coming in, looking for a change of direction. But the public sector is another area which I think will be contracting, due to problems with public finance.”

The graduate jobs market has grown increasingly competitive. The Gradireland graduate salary and graduate recruitment trends survey 2009 found that the average starting salary has dropped from €24,000 in 2008 to €23,000. Also, the proportion of companies offering graduate bonuses has dropped from 60% to 11%.

Mark Byrne, IT manager at Brightwater Recruitment, says: “It is difficult for graduates. Many companies have put projects on hold and this means there are fewer graduate roles.

“It is highly competitive. Employers are looking for individuals that are brighter, ambitious and have a proven track record.”

Surprisingly, perhaps, 40% of jobs available to 2008’s graduates were in the accounting and financial sectors. McGrath says the financial sector is not shrinking in employment terms: “The expanding sectors include business services, such as software, and even financial services, particularly because there will be growth in regulation and compliance. Accountancy is doing well, and the health professions are strong. There are also opportunities in areas such as pharmacy, where exports are doing well, both at the professional and technical levels, in jobs such as fault finding and quality control.”

Byrne also says the financial sector should not be written off by students. “IT, accountancy, sales and marketing in retail are strong at the moment. Things such as engineering and the financial services will eventually turn back,” he predicts.

Despite the difficulties in the job market, Byrne and McGrath agree that a third-level qualification is crucial for young jobseekers. “It’s almost the standard,” says Byrne. “It shows an aptitude for learning and dedication. Even if you do get a role straight out of school, there’s a marked difference in salary in the long term.”

Not all third-level institutions have seen graduate unemployment rates soar. Waterford IT, our Institute of Technology of the Year, tops the jobs table this year, as it did in 2008. Its graduate unemployment rate was 0.8% this year, against 0.4% in 2008.

Six other institutions also kept overall graduate unemployment at 2% or less: NUI Maynooth, University College Dublin, Dublin Institute of Technology, Dublin City University, the National College of Ireland and NUI Galway.

“The colleges that are performing best in terms of jobs progression are likely to give more commercial advice to students,” says Byrne. “I wouldn’t necessarily say it’s a reflection of the kind of degree the students are coming out with.”

Dr Derek O’Byrne, registrar of Waterford IT, confirms the focus on equipping students with skills for the workplace. “These practical life experiences provide the learner with highly attractive transferable skills for graduate recruiters. We also have a strong network of employers that consistently recruit from the institute.”

David Foster, director of UCD’s careers office, says the college is focused on giving students as much help as possible to prepare for graduation. “We have always had strong links with recruiters in Ireland, the UK and beyond, and despite the economic difficulties, we are not winding down. We are increasing our work in that area,” he says.

Byrne urges students to plan ahead to help make themselves employable. “We would recommend that second-level students study harder in the Leaving Certificate to ensure that they get a good qualification,” he says. “Then, while in college, they should get experience in the relevant area they hope to work in. It is of huge benefit if they come out with some commercial experience. Recruiting companies go for the candidates who have studied hard, have come out with a good degree and are ambitious.”

The issue of choosing an undergraduate course remains all-important, however. Foster believes that focusing on short-term economic factors can confuse the issue. “When I was working in the UK in the late 1990s, graduates in construction were finding it difficult to find jobs, but when things turned around, there was a shortage of graduates because so many had taken the short-term view,” he says. “Law firms also stopped recruiting and then found they didn’t have the staff they needed. This time they will cut back on recruitment, but they won’t stop it entirely.”

Technology and science courses pose another problem, in that more than 20% of students drop out after their first year. The high attrition rate is blamed on the low CAO points required for these subjects — as low as 300, compared with 470 for primary school teaching — which are a result of the declining numbers of entrants. McGrath says: “People have tended to avoid science. I would encourage them to start looking at technologies, particularly software, which is robust, and the natural sciences.”

While the economy cannot be ignored, students are always encouraged to follow a third-level and career path that suits their abilities. “I would say if a student is really interested in a subject, they should do it, because it’s likely that they have a natural flair for it,” says McGrath.

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