That least sexy of faculty buildings, the one that houses the university careers service, is expecting a surge in popularity this year, because, on campus, there’s a new sense of anxiety about postuniversity employment.

This year’s graduates report that their shiny new degrees are being overlooked in a market that is crowded with qualified job-seekers, and the news is filtering down: 81% of students and recent graduates are more concerned about job prospects this year than last year, according to a survey by Price Waterhouse Coopers.

It’s a familiar story for Oxford graduate Alex Christofi, 21, who left Lady Margaret Hall with a 2.1 degree in English this year.

“My friends and family thought that with my work experience and degree, I would straightaway land the entry-level publishing job that I wanted,” said Christofi. “But neither seems to have made much difference. I’ve applied for about 40 jobs, but only one resulted in an interview. I might as well have shredded the rest.

“Most employers don’t even acknowledge my applications. In the long term I want to be a writer, but for now I’ve taken a job as a school laboratory technician.”

Some experts are still predicting that the graduate job market will remain buoyant. “In the last recession, graduate intake was cut, so when business picked up there was little new talent to move up the ranks,” said Jack Constantinides at the recruitment company Monster. “Organisations learnt from that and see graduates as an investment for the future that cannot be sacrificed.”

The figures suggest otherwise, however. A Higher Education Careers Service Unit (HECSU) survey of 209,000 graduates six months after leaving university in 2007 found that more than 5% were still unemployed, and 2.7% fewer graduates were being offered work in finance.

Mike Hill, HECSU’s chief executive, believes there is worse to come: “This year has been a time of turmoil, and the effect is feeding through to the job market. We anticipate this will be reflected in the 2008 and 2009 graduate-employment market.”

That turmoil is already being experienced by some.

“As I left uni with a good degree and lots of work experience, I hoped to get the job I wanted in marketing or PR,” said Meir Adler, 22, who graduated this year with a 2.1 in philosophy from Nottingham University. “But I soon realised the job search wasn’t going to be easy.

“I’ve applied for 25 jobs without success, from marketing for companies like Google and Goldman Sachs to working for an art gallery. About half the applications resulted in interview. In the past, whenever I’ve got to interview stage, I’ve been offered a job, but now I was actually told at one interview, ‘if it wasn’t for the economy I’d hire you right now’.

“I have a £21,000 student debt to pay off. It’s incredibly frustrating. A recruitment consultant told me that one company wouldn’t look at my CV because I didn’t get three As at A-level – the market is flooded, so employers are being extremely picky.

“It feels like I’m hitting a brick wall. If I don’t get a job soon, the next few years will be hell.”

Adler’s feelings about rising applicant numbers are backed up by the Association of Graduate Recruiters (AGR), which has reported that this year 5% more graduates competed for each vacancy than last year.

Carl Gilleard, AGR’s chief executive, said that in September, 40% of his members were not changing recruitment plans, the rest planning on cutting and raising graduate recruitment in equal numbers. But he admits the picture might have worsened since then.

“Employers are telling students that they will be recruiting, but don’t know about numbers yet,” said Gilleard. “They don’t want a gap in their talent pipeline, but students need to be more flexible about companies and careers.

“If the job hunt doesn’t go to plan, graduates should contact alma mater careers services for advice, and fill their CVs with volunteering and temping – without losing sight of the long-term goals.”

Finance firms are cutting recruitment – down 2.7% in 2007, according to the AGR – which means more competition in other sectors.

“We have seen 50% more applicants over the past 12 months,” said Sonja Stockton of Price Waterhouse Coopers. “People who may previously have chosen City jobs are now looking elsewhere.”

Wannabe lawyers are also reporting acute competition as the legal profession is seen as a stable alternative to City work. Students are filling out huge numbers of application forms to secure even an interview.

“I’ve always wanted to do law, and have been building my CV towards that goal for ages,” said Yasmin Strachan, a fourth-year law student at Robert Gordon University in Aberdeen. “I had studied international law during an Erasmus year in Denmark, and had a part-time job at a big property law firm, plus a predicted 2.1 degree. So, after researching 60 employers and applying to 20, I was surprised to receive only one invitation to interview.

“But since a lot of my friends didn’t get any, I was also relieved. Some firms aren’t taking on any trainees. Solicitors have told me it’s going to be hard for people applying this year and the next.

“I was lucky; my one interview resulted in an offer,” said Strachan.

“Some trainees have received offers to start this year, only to be told that they can’t start. The options that have been there for previous applicants are no longer there for us.”

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