A new report from the Association of Graduate Recruiters has indicated that competition for jobs amongst UK graduates is getting substantially tougher as companies reduce their intake.

More than one quarter of all employees have slashed their target number of graduates during the past three months alone, and almost one in five have deferred a starting date, according to the survey, conducted by the Institute for Employment Studies and was based on the responses of 166 leading UK employers.

While most companies blamed the economic downturn for the cutbacks, a minority mentioned that there was a shortage of candidates of a high enough calibre. The downturn has most severely affected the electrical and optical equipment, mobile phone, and computer manufacturing industries. But some industries, such as retail, distribution and hotels and catering are still showing healthy growth.

Forum Response: Universities UK

Diana Warwick, chief executive of Universities UK, told ePolitix.com: "Businesses will routinely adapt their graduate vacancy targets throughout the year in response to economic and market pressures and it would be very surprising if they didn't. However, despite the changing economic climate, it is encouraging to see that some 13 per cent of companies have increased their graduate recruitment targets, 62% remain on target and in the vast majority of cases, some 90 per cent, offers remain on the table."

Forum Response: Association of University Teachers

A spokesman for the Association of University Teachers told ePolitix.com: "Our overall view is that any apparent short term fluctuations in the job market should not be used to undermine the government's 50 per cent target of the population having been in higher education by the age of 30.

"Overwhelmingly graduates are better placed to use their degree to take advantage of vacancies in the job market and also benefit from the wider social experience that university provides."