A radical overhaul in the way that university careers services work is needed, according to a report by think tank Demos.

The report recommends that university career firms should be turned into not-for profit recruitment consultancies – with no commission for careers service employees – specialising in finding work for graduates in businesses local to the institution.

Demos also calls for greater use of student and graduate internships to aid the transition from study to the workplace.

Jen Lexmond, researcher at Demos and lead author of the report, Class of 2010, said: “This generation of graduates faces greater costs to attend university and fewer employment opportunities when they finish. More must be done to support graduates’ transitions into employment or self-employment.”

The research found that the graduates of 2010 prioritise a work-life balance and the social impact of their job over a high starting salary.

Meanwhile, more than a quarter of students surveyed said they would turn down a job offer from an employer if the firm had a poor environmental record.