BUSINESSES are reporting concerns over the quality of graduates’ readiness for the world of work, according to a new report.

The UK-wide CBI/Pearson Education and Skills Survey, which sampled the views of 240 businesses in Scotland, also warned over the quality of careers advice.

However, it showed that 42 per cent of businesses in Scotland have increased graduate recruitment in the past year, well above a UK average of 29 per cent.

Roxanne Stockwell, principal of Pearson College London, which helped compile the report, said: "While there are encouraging signs of growth in graduate recruitment and the demand for higher-level skills in Scotland, it is worrying firms are finding many graduates they recruit aren’t properly prepared for the world of work.

"Students are becoming more critical consumers of higher education and universities have a responsibility to meet this demand and ensure that students leave with the skills needed to succeed.

“We need more collaboration between universities and business, with courses designed, developed, delivered by industry, and opportunities for students to gain first-hand experience of business, through industry workshops and work placements.”

The report found 31 per cent of businesses reported shortcomings in "self-management and resilience" of new graduate employees, 36 per cent reported a lack of relevant work experience and 44 per cent were not satisfied with graduates’ levels of "business and customer awareness".

Some 95 per cent of Scottish businesses said the quality of careers advice young people received was not good enough to help them make informed decisions about future career options.