The credit crunch has led to a surge in graduates applying for places on public sector management training schemes, new figures show.

The NHS has reported an 83 per cent rise in applications for its training scheme, the Civil Service Fast Stream a 33 per cent increase, and the local government management programme for graduates a 10 to 15 per cent rise.

Teach First, a scheme that encourages graduates to teach for two years before seeking long-term employment — often on management training schemes in the private sector, has seen a 90 per cent increase in applications.

Data to be published next week suggests that one in three final-year students believes that the public sector is a more appealing employer during a recession — 50 per cent, perhaps unsurprisingly, say banking is less appealing. The research by Highfliers, compilers of The Times Top 100 Graduate Employers, shows that the public sector is one of only two sectors to show significant growth in graduate vacancies in 2009; the other is the Armed Services. Martin Birchall, editor of The Times Top 100, said there was likely to be a 51 per cent increase in public sector graduate jobs in 2009 compared with 2007 and an 18 per cent rise in the Armed Services.

More than 12,000 graduates applied for a place on the 2009 NHS graduate management schemes in finance management, HR, informatics and general management compared with 6,753 the year before. Nicola Fair, the corporate lead on the NHS scheme, said: “People are making more applications and applying earlier, which is partly explained by what is happening in the job market. I think they are also going for what they see as a safer option in applying to the public sector.”

Early indications suggested the calibre of applicants was higher than in previous years and the NHS will be interviewing 20 per cent more applicants for the scheme although it would not be increasing the 240 places available. With starting salaries of £22,500, the NHS scheme falls below the Top 100 average graduate public sector starting salary of £25,300 and private sector starting salary of £27,000. “In the public sector we cannot offer company cars or big sign-on bonuses. But the value of the package is high — the education opportunities for example — and graduates are starting to recognise that.”

A similar trend was evident in the Civil Service. Graduate applications to the prestigious Fast Stream programme rose by 33 per cent in 2008, with 22,445 applications received for 2009 entry, compared with 16,858 in 2007, according to a spokesman for the Cabinet Office. The number of places remains the same, however, at about 500 across four divisions with salaries starting at about £25,000.

“We are naturally pleased that this year has seen such a large increase. It is too early to say whether the overall calibre of applicant has increased proportionately, [but] we do hope that it has attracted as diverse a field as possible,” the spokesman said.

Malcolm Craig, programme manager for the National Graduate Development Programme for local government, said the number of applicants had risen to about 1,700 for 80 places. “There has been a sharper upturn than in previous years. I think we are benefiting from the fact that applications for investment banking are so low. The perception is that the public sector is more stable. I'm not sure that's necessarily the case - I think that the recession will start to hit opportunities in the public sector in two or three years' time.”

James Darley, the director of graduate recruitment at Teach First, said it had received as many applications for this year's programme by Christmas as they did in the whole of the previous year. It received almost 2,000 for 450 places on the 2009 scheme. It hopes to offer an extra 150 places for graduates in February. “It is fantastic and the quality of applicants is exceptional. I've heard that on other graduate programmes the quality has gone down. We have not seen that, these are not people desperate to have any job.”

Mr Darley said that some graduates were using the scheme to ride out the recession. “It buys them time, but if they want to make a difference, upskill and gain some extra qualifications, then we are pleased.”

About half of the people who do Teach First stay in teaching, the other half leave to work for a range of employers including companies with deferred entry arrangements with Teach First including Accenture, JP Morgan and Deloitte — the Civil Service Fast Stream, the first public sector organisation, has joined the scheme for 2009.

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