The findings "will be a huge blow to the government", which has encouraged a sharp rise in the number of university students without a corresponding increase in graduate jobs, said the study conducted by High Fliers Research, an independent market research company.
Labour denied its education policies had failed, pointing out that the study had considered students' "expectations rather than actual outcomes in the job market". It said that separate figures produced by the Higher Education Statistics Agency in 2004 had revealed that "the proportion of graduates entering employment was 73 per cent - up by 10 per cent since 1997".
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