Lean prospects for graduates

Generation Y graduates are having employment doors closed in their faces as bosses opt for experience to lift them out of the recession.

Employers are seeking experienced people and not wanting to train staff, which will have a significant impact on new graduates, says Jason Walker, managing director of Hays recruitment.

Those who aren't in a graduate programme are finding it difficult to get employment.

"It's going to be incredibly challenging, particularly in the next 12 months, because there is going to be a lag time between the recovery and when employers start looking at recruiting trainees."

Employers will also hire returning expats with more experience ahead of graduates.

Graduate programmes have been cut significantly across all sectors, including banks and legal and accounting practices, Walker says.

Two years ago when the market was booming, companies had to sell themselves to graduates. Now, graduates have to sell themselves to potential employers.

The boom of the mid-2000s allowed engineering consultancy Beca to offer places to up to 60 university graduates and 50 summer students two years' running.

As a result of the slowdown, the volume of project work suitable for graduates in engineering-related professions has dwindled considerably.

Beca's graduate recruitment manager Alex Mumme says the company has halved its intake, offering 30 graduate roles and 25 summer internships this year.

An ANZ National spokesperson says the bank reviews the number of graduates accepted in line with business requirements and the economic climate, and as a result the number of graduates accepted since last year has reduced.

Randstad's Brien Keegan says Gen Ys, or those born after about 1980, who gained roles through graduate programmes in the past 18 months have often been the first to be let go because of the recession. "In some cases they have not even 12 months' experience and they are looking for the next job."

Keegan suggests candidates develop a tight 30-60 second business description for potential employers, outlining what they do and why someone should hire them. At the same time, graduates need to be mindful of the stereotype about Gen Ys being overconfident.

"They need to be wary of that perception and not come across as pushy or wanting to be the managing director within two years," says Keegan.

Where Gen Ys may have a competitive advantage over other job hunters, Keegan says, is their savvy in using social media as a networking platform. But they also need to be aware of the content they put on sites like Facebook, Twitter and LinkedIn because employers are also looking at the sites.

John Scott, general manager of credit reporting agency Dun and Bradstreet, says the challenging job market is affecting young peoples' financial stability.

He sees younger generations start out with average student loans of $19,000 and says they have not had time to develop money management experience or accumulate savings to cushion them from shocks.

Agency research shows 18-34-year-old consumers tend to spend more than other age groups and are more likely to use credit cards.

If they lose their jobs, 55 per cent could last only a month on their savings.

Yet this is still the group with the highest proportion of those who are seeking to increase their credit limits or get a new credit card. Gen Y makes up the highest proportion of all debtors listed with the agency.