Small business group calls for graduate internship scheme

The Federation of Small Businesses (FSB) is calling on the Government to create 5,000 new internships for recent graduates, in a bid to tackle soaring levels of graduate unemployment.

The organisation is warning that students graduating this summer are facing the toughest employment conditions in years, with larger companies reducing placements by 28%.

According to research conducted by the FSB, more than 20% of small businesses would be prepared to take on a graduate, while 45% are not aware that they can run internship schemes.

The FSB is calling on the Government to allocate £3m of funding to developing 5,000 graduate internships within small firms.

John Wright, FSB National Chairman, said, 'Graduate unemployment is set to soar to unprecedented levels this year as businesses struggle to make ends meet and cut back on recruiting key university leavers'.

'Small businesses are the sector to create and retain jobs and act as a bridge to formal employment'.