A third of graduates have been looking for work for more than six months, often applying for over 100 jobs, according to research.
A study among 300 graduates by jobs website totaljobs.com also revealed that one in four of those who wrote more than 100 applications was not offered a single interview.
The difficulty in finding work has led to lower wage expectations, with today's graduates expecting to earn less than £20,000 a year.
Mike Fetters of totaljobs.com said: "Overall, the picture for graduates is tough, but there are signs of improvement. We are seeing some growth in the number of job available.
"This is little comfort, however, for those that took the advice of successive governments and invested in their education only to find themselves forced through necessity to claim the dole and fail to be invited to a single interview."
But one graduate says, despite his struggle to find work, he "most definitely" does not regret going to university - and incurring the inevitable debts.
Sam Bullen studied international politics and strategic studies at Aberystwyth University and said he received copious amounts of help from his university regarding employment.
"While my degree was very academic, it gave me some excellent transferable skills such as communication and information analysis. My university provides a great number of employment options and has been brilliant with advice both with jobs and further study."
However the story is not the same when it comes to the local authority.
After looking for work for about a year, he decided to turn to further study.
"I've been looking at doing a postgraduate course and the local services are pretty poor. No real help and, as I want to move into a house with my non-student partner, not even continued free council tax."
And, he adds, there is the extra problem of having no financial help from the government.
But Bullen insists he has no regrets.
"It is much more important to do a degree that you enjoy than one aimed at getting a well-paid job that you don't enjoy.
"It is a life experience that should not be missed. It's not just about the course or the employability factor as much as it is to do with the independence and friendships."