Survey sounds pessimistic note for graduates

Full time graduate places in investment banks could fall nearly 30% in 2004 according to a new survey.

The average number of graduate places in investment banks could fall from 72.5 in 2003 to just 52.5 in 2004 according to a survey of more than 30 investment banks conducted by GTI, the graduate publishing company.

This would be the fourth consecutive year of reductions: in 2001 the same survey put the average number of graduate places at 93, while in 2002 the average was 84.

This year's survey was conducted last summer, but results have only just been released.

It also found a reduction in the number of banks offering internships: 77% of respondents said they were offering internships in 2003, versus 87% in 2002.

The survey's forecast reduction in graduate hiring in 2004 is at odds with recent press reports which have suggested places will rise, and with interviews with banks' own recruiters, many of whom say hiring is likely to be up in 2004.

'Everyone is a lot more positive than they were previously. The feeling is that numbers next year will be higher,' said a recruiter at a large European bank.

Mark Blythe, joint managing director of GTI, said economic conditions have improved since the summer, which may account for recruiters' increased optimism.

The survey also found starting salaries rose marginally to 30,777 for graduates starting in 2003, up from 29,000 in 2002. However, banks said they were cutting back on other benefits such as performance bonuses for graduates, golden hellos and subsidised restaurants.