Graduates have been warned they may have to take a job in a coffee shop because of the lack of opportunities to start a professional career.

Simon Culhane, chief executive of the Chartered Institute for Securities and Investment, claims a lack of jobs to meet demand and employer demands for at least a 2.1 degree from a top 20 university meant many graduates would be better off taking a gap year before directly entering the industry of their choice.

Mr Culhane claims students finishing their degrees this summer face taking jobs which do not make use of their degrees.

He said: "Today’s graduates have a tough time. There are simply not enough jobs, which is why too many graduates are either serving coffee at Starbucks, or the equivalent, or have entered the employment market in jobs for which they are over-qualified."

Six years ago economists estimated a degree would help graduates earn £200,000 extra during their working life than those who did not go to university. Mr Culhane said that “premium” has fallen to less than £130,000 today.

He added: "Many aspiring students – and their parents – should be, and are, asking themselves if a degree is worth it.

"The answer may be politically incorrect and unwelcome, but if a key reason for an individual wanting to take a degree is to get ahead, then unless they are studying a relevant, vocational qualification at a top university and expect to obtain a 2:1 or better, they would be well advised to take a gap year and then enter the industry of their choice.”

The comments follow the Association of Graduate Recruiters publishing their manifesto calling for the government to abolish the 50 percent target for higher education and revise degree classification system. To read more about the AGR manifesto, click here.