Unprecedented debt and no jobs for the class of 2008

The class of 2008 faces unprecedented levels of debt and is struggling to find jobs as the credit crunch takes hold.

Students who graduated from university this summer have apparently never have had it so bad. Many borrowed tens of thousands of pounds in student loans on the assumption that they would walk into well-paid employment.

But graduate recruitment has been suspended or reduced by some companies as they struggle to stay afloat. Rather than taking their first step on to the career ladder, graduates are instead moving back in with their parents and accruing interest on debts as they look for work.

One graduate from the London School of Economics said: “I thought after I got a masters degree from a world-renowned school that I would have an easier time finding a job. I was wrong.”

The squeeze on the banking sector means that this year's graduates are competing for a dwindling number of traineeships, resulting in a growing demand for polished “soft skills” as well as a sharp brain.

Richard Wainwright, the CBI's head of education and skills policy, said: “Just having a good degree isn't good enough any more. Clearly the job market is going to get more competitive. A lot of firms have put recruitment freezes in place.”

While it might seem intuitive for companies to save money by sacking expensive executives and recruiting young graduates, Mr Wainwright said: “I don't think graduates are a cheap option. Those large firms that develop graduate recruitment schemes spend a lot of money on that.

“Graduates now need those skills that employers value, such as team-working, problem-solving, customer service and a positive attitude. That's an area that a lot of employers think graduates fall down.

“Young people who go into the workplace thinking the world owes them a living aren't going to do well.”

Real World, a graduate recruitment agency, said that those wanting to enter the banking and construction industries had been worst hit.

Darius Norell, its founder, said: “Companies involved in risk markets, such as Lloyd's Register, are expecting to recruit more graduates. And a lot of the large professional services, such as PricewaterhouseCoopers and Ernst & Young, are pretty flat, with graduate recruitment neither up nor down.

“But banks that are recruiting are taking on less people, and some banks have just stopped completely. It means the competition is that much more intense.” Northern Rock is one of the banks that suspended its graduate recruitment programme. Many other big names, including HSBC, Barclays and Lloyds TSB, did not respond to inquiries about how many graduates they would recruit this year. An explanation for the silence was given by Anne-Marie Martin, director of the Careers Group, which is organising this month's London Graduate Fair. “There will be a lot of positive statements going out because no one wants to be the first to break rank,” she said.

The National Union of Students estimates that members accrue an average ￡12,500 a year in debt - almost ￡14,000 in London - so it is not unusual for graduates to be more than ￡30,000 in debt. This year's graduates had to pay more than ￡3,000 a year in tuition fees for the last two years of their degree, so will have higher levels of debt than their predecessors.

Many will also have borrowed more than ￡10,000 in living-cost loans to support themselves while studying.

The Student Loans Company is owed ￡22 billion. While 1.7 million graduates have started to repay their loans, another one million are still at university or are not earning enough to pay any back. Graduates must pay nine per cent of their earnings above ￡15,000 until their loan is cleared.

For many students, moving back in with their parents is the cheapest option, but this is not without its drawbacks. Christine Northam, a counsellor who works for Relate, said that some parents struggled to adjust.

词汇：

crunch n. 需要做出重要决策的困难时刻
credit crunch 信贷紧缩
recruitment n. 征募新兵,补充
graduate recruitment 招收大学毕业生
suspend vt. 暂停, 终止
afloat adv. 未处于绝境地, 幸存地
stay aloat
e.g：His business is facing difficulties, but it is staying afloat.
他的生意遇到一些困难，但还能维持。
accrue vi. 增加, 增长
renowned adj. 有名的; 享有声誉的
dwindle vi. 逐渐变少或变小
take on
承担 He is always ready to take on heavy world responsibilities.
呈现 The old factory has taken on a new look.
雇用 They no longer have to take on large numbers of temporary workers to do the harvesting.