The Federation of Small Businesses has urged the Government to invest three million pounds to create new internships and tackle the growing problem of graduate unemployment.
An internship scheme with up to 5,000 placements with small businesses would not just help university leavers, but would save 600 pounds on each graduate not forced to claim unemployment benefits, the FSB said.
It added that with recession-hit businesses scaling down their recruitment plans, a programme securing internships and jobs would come as a much-needed boost.
FSB chairman John Wright said: "Graduate unemployment is set to soar to unprecedented levels this year as businesses struggle to make ends meet and cut back on recruiting university leavers.
"In a graduate internship scheme, graduates can offer key skills to help businesses move forward while at the same time ensuring they are learning new skills and not unemployed at a crucial time in their careers."
