Around one in 12 (8.5%) of those who graduated in 2010, some 19,785 in total, were still without a job six months later, down from 8.9% in 2009, according to the Higher Education Careers Service Unit (HECSU).

This is the first fall since the start of the recession, but graduate unemployment is still higher than before the economic crisis began, the study says.

In 2007, before the recession, it stood at 5.5%. There were about 20,000 fewer students graduating in 2007 than in 2010, HECSU said.

Charlie Ball, HECSU deputy research director said: "While graduate unemployment has fallen, it remains high in comparison to levels reported at the beginning of the recession and graduates still face stiff competition - not just from their peers but also from more recent graduates."

He warned graduate unemployment was still "vulnerable" and recovery cannot be guaranteed.

The annual What Do Graduates Do? study is based on official data collected through a survey of thousands of graduates to find out who was employed, in further study, or out of work.

The findings show that 284,160 students graduated in 2010 with a first degree.

Of these, 62.2% went into work, 13.5% went on to further study and 7.6% were working and studying. The study suggests that amid a squeeze on public spending, there are signs that fewer graduates are going to work in the public sector.

"While there are signs of growth in the business and financial services sector creating more opportunities for recent graduates, 2011's ongoing reduction in public sector employment is likely to affect graduates," it says.

The report adds that "modest" growth in private sector employment may offset slowing public sector recruitment.

It also says: "It appears that in 2010 there has been a reversal as there are fewer graduates in 2009-10 entering employment in the public sector and an increase in those entering the banking and finance sector."

While there was no major decline in the numbers of graduates going on to work as nurses, doctors and teachers, clerical and secretarial posts in areas such as local government, public administration and defence have dropped from 7.9% of graduates employed to 6.8%.

Marketing, sales and advertising saw the biggest jump, with 31% more graduates entering roles in these areas compared with the year before.

Mr Ball said: "Many parts of the graduate employment market remain fragile, and recovery has not spread to all sectors or regions of the country.

"The jobs market for graduates is still vulnerable to bad economic weather and a continued recovery cannot be guaranteed in the current climate." Toni Pearce, National Union of Students (NUS) vice-president said: "Whilst it is encouraging to see a small upturn in graduate employment levels, the Government still need to be doing more to support all young people through difficult economic times.

"Graduate unemployment is still very high and this is only a very small light at the end of what looks like a very long tunnel. When the jobs market is so difficult even for well qualified graduates the Government should be supporting young people by protecting jobs, creating well-funded apprenticeships, and properly supporting those in education."