The outlook might be grim but determination and research can help you land your first job.
Members of the class of 2008 could be forgiven for wishing they were a year older.
Their slightly more mature university mates from the class of 2007 burst on to the job scene at this time last year and were greeted by employers ravenous for workers.
A year on the pendulum has swung dramatically the other way, jobs are scarce and many employers are looking at laying off staff.
But things are not totally bleak for first-time job-seekers. Some sectors remain relatively recession-proof and graduates who do their homework can boost their chances of landing that first job.
The general manager for project recruitment at Chandler Macleod, Matt Saxty, says graduates can take heart in the fact that smart employers are thinking long-term and keeping up their graduate intakes during the downturn. They understand that if they don't keep a presence in the graduate recruitment market, it can take years to build up again. "I saw two companies pull out in the 1990s [recession] and they wouldn't do it again," Saxty says. "Most organisations see their graduate recruitment program as pipelines for their future leaders."
One obvious bright spot for graduates to consider is the government sector. While the private sector will scale down production as the economy shrinks, the government will need to keep providing services and staff are needed.
"[It's] not exactly recession-proof but it's stable and there's no indication that they are scaling down," Saxty says.
A recent survey of graduate expectations by recruiters Gradient saw Queensland Health and the Australian Tax Office ranked second and fourth in a list of the most attractive employers.
"Our advice to graduates would be, don't be so focused on one organisation," Saxty says.
"Be more open-minded about the sort of organisation you would consider."
Graduates should keep an eye out for smart private sector companies employing creative tactics to ensure they get the staff they want. "Some firms are deferring start dates, often paying retainers of 50 per cent of salary," Saxty says.
"I've seen instances of companies actually part-funding candidates' foreign travel to accommodate a later start date."
Teresa Romanovsky, the Sydney general manager at DFP Recruitment, says some graduates will struggle with the current economic situation.
"They don't remember the last recession," she says.
"Graduates can't demand the same salaries as a year ago and can't demand the same incentives, such as flexible working and free gym memberships, that they used to."
Romanovsky identifies a new challenge for graduates coming on to the job market. "They'll be in competition with people with three or four years' experience, who have been made redundant. These people may well have a mortgage and would consider taking a pay cut," she says.
She says manufacturing, retail and hospitality are three sectors particularly suffering at the moment. The sector she identifies as still buoyant - legal services - perhaps shouldn't be surprising, as economic difficulties bring with them a host of legal complications.
Taye Morris, the manager of careers and employment at the University of NSW, puts the gloomy prognosis on recruitment into perspective. "At our Careers Expo last March, 156 companies attended. Bookings for this year look similar."
Companies continue to come on to campus throughout the year, Morris says.
"Employers still see it as important to promote their brand."
Morris insists the recruitment process is always competitive, with thousands of applications for a small number of jobs. Her advice today is similar to the advice she would give any time.
"Employers are all after the same students - those who have achieved at uni, as well as having work experience and been a leader in extra-curricular activities."
Morris's advice for a job search routine is to think of the process as a marketing exercise, where you are the product.
"Get organised, keep track of your applications and keep a file of job ads, contacts and business cards. And be contactable."
Other valuable advice from Morris is to target an industry and attend its professional association functions. Many students shy away from this but, Morris says: "It's just talking to people."
Persistence pays
Nathanael Piper, 22, graduated from Sydney Graphics College at the end of 2007 with a bachelor of graphic design degree.
Making a good impression in his interview with a digital media company helped him land a job. While he failed to get the first job he applied for with the company, they were impressed by his outlook and CV.
"They kept me on file and took me on when they had another opening," the Vaucluse graphic designer says.
Piper says he treated his job search as a job in itself. He would get up early, eat properly, exercise and be at the computer by 8.30am checking his favourite job sites. He applied for jobs even if they weren't entirely appropriate.
"You have to stay out of the realm of hopelessness and reward yourself at the end of the week," he says.