The graduate job market is toughening up, as employers reduce the number of vacancies and fill jobs internally, according to a report by the Association of Graduate Recruiters.

The number of graduate vacancies has fallen by 5.5% since July, the report found. One in five employers had deferred the starting date of job offers and one in ten had withdrawn job offers completely – the most popular reason being the current economic climate.

One employer explained: ‘The vacancies we had in the company could be filled by existing employees, and it was better for us to re-deploy staff than to make any redundant.’

In light of these difficulties, graduates are taking steps to help themselves. 200 have already signed up for the IT Graduate Apprenticeship Programme, a scheme aimed at bridging the gap between university and employment. Set up in September and piloted by companies such as Unisys, Hewlett Packard and Compaq, the programme aims to equip graduates for work in the IT sector.

Ann Swain, chief executive at the Association of Technology Staffing Companies, said: ‘Academics are constantly having to play catch-up with the industry. These apprenticeships should allow graduates to learn valuable skills and get ready for full-time employment.’