More than one in three University of Cambridge graduates chooses to continue their education rather than enter the job market, according to the most recent graduate destination statistics.

36 per cent of Cambridge graduates pursued further study, with only 55 per cent successfully gaining full-time employment. Five per cent were left completely unemployed.

Employment rates for University of Cambridge full-time, first-degree graduates were consequently nearly 10 per cent lower than the national average, which stood at 63 per cent, according to results from the Higher Education Statistics Committee (HESA).

However, this was due simply to the greater proportion of Cambridge students choosing further study – the national average stands only at 16 per cent, with seven per cent combining studying with part-time employment. Consequently the rate of unemployment was also lower than the national average of nine per cent.

Statistics for specific courses within the University showed that Law had the greatest number of students continuing their education, at 59 per cent, followed by Natural Sciences at 53 per cent and Theology at 47 per cent.

Classics, Philosophy and Mathematics were close behind, all with 39 per cent of finalists opting further study rather than pursuing full-time employment.

Architecture, Linguistics and Manufacturing Engineering had the lowest rates of further study, and correspondingly the highest rates of employment.

Meanwhile, History of Art and Anglo-Saxon, Norse and Celtic had the highest rates of unemployment, at 14 per cent and 13 per cent respectively.

The choice of so many University of Cambridge students to continue their education is perhaps unsurprising, as more and more statistics point to a continuing crisis in the job market.

A study at the beginning of the year by the Office for National Statistics (ONS) showed that one in five recent graduates were unemployed, the highest rate for more than a decade.

Meanwhile, UK unemployment on the whole has now risen to a 17-year high of 2.57 million, the ONS also revealed last month, with an unemployment rate of 21.3% for the 16-24 age group.

President of the National Union of Students (NUS), Liam Burns said: “Times are tough for young people at the moment with rising unemployment no matter how well qualified they are.”

New statistics from HESA, meanwhile, show that more than one in four graduates from 2007 still does not have a full-time job, three and a half years after leaving university. However, 6.5 per cent were still continuing their studies, and 5.3 per cent were combining work and study.

A gender gap was also seen in the report: while 14% of men in full-time work who graduated in 2007 were now earning between £30,000 and £34,999, only 9.3% of women achieved this salary bracket. 29.4% of women were earning between £20,000 and £24,999, compared to 15.6% of men.

With such difficulties for graduating students, questions are being raised about the value of getting a degree, particularly with the tuition fee rise coming into effect in 2012.

Universities minister David Willetts said: “A degree remains a good investment and is one of the best pathways to achieving a good job and a rewarding career.”

Yet, the Office for National Statistics revealed this summer that one in five graduates earns less than a person who left school with as little as one A-level.

A poll commissioned by the bank Santander found that 60 per cent of the businesses it interviewed would hire a secondary-school leaver with two years of work experience rather than a graduate.

“The reality is that as a country we haven’t been very good at creating graduates who are specialised in areas that employers are demanding,” said Mike Fetters, Graduate Director at totaljobs.com. “The economic downturn exposed this brutally in the form of high graduate unemployment.

“The only benefit that we can see in the disappointing decision to, in effect, triple fees is that it may focus the minds of those wishing to go to university on which skills are most in demand in the jobs market, which degree will best enable them to pay off debts most swiftly and create more focus on their chosen career direction.”

The National Union of Students said the government risked “losing a generation to low skills and high unemployment” by failing to support young people sufficiently.

However, some evidence suggests that things could be looking up in the graduate job market.

A recent report by the Association of Graduate Recruiters showed a rise in the number of graduate vacancies for the first time since the beginning of the recession, although starting salaries remained at a median of around £25,000 per annum.

Meanwhile, a survey in May by High Fliers Research of 2011 graduates showed a renewed faith in the banking profession after a noticeable decline during recruiting seasons of the last two years.

High Fliers managing directory, Martin Birchall, said: “During 2008-2009, applications for investment banking fell by a third. When we spoke to people in March, more people had applied for banking than any other sector.

“At least three banks are rumoured to be paying £50,000 starting salaries, and that’s before any bonuses. All of the banks were back on campus with a vengeance in the last 12 months, promoting themselves very hard. Most of the best-known City names are recruiting at 2006-2007 levels.”

The survey also found that finalists began job hunting earlier than normal and made on average a third more applications than the previous year.

Earlier this year, the Guardian reported that several universities had proposals to award extra marks on some degree courses to students showing evidence of corporate skills or other experience in the job market.

Fetters, of totaljobs.com, said: “It isn’t just students that need to adapt their behaviour; there are also roles for universities and business. Universities must look to offer more courses aligned to the jobs market and incentivise them if necessary. In turn, businesses should engage with the education sector to ensure that the skills they need are incorporated into university courses.”

However, many critics, including academics, argue that such schemes, which aim to churn out “job-ready” graduates, are adding to the process of undermining the role of universities in society.