Half of all law students are worried about job prospects when they qualify and would take a trainee position anywhere in Britain, a new survey concludes.

At the same time, seven in ten favour a post abroad, if they were given the chance, with the US topping the list for the most popular destination.

The first findings on the impact of the credit crunch on the next generation of lawyers emerge in this year’s Times/College of Law survey of 2,000 students now enrolled at Europe’s largest legal training institution.

The survey, in its fifth year, shows how students are feeling the pinch, concerns about careers and the tougher competition they face.

More than half feel that they should be more concerned about their job prospects relative to other professions — although there is no sign yet of a fall in numbers aiming for the law.

If typical of the student body at large, the findings also make gloomy reading for the Government as there has been a big shift in the percentage that would vote Conservative if an election were held tomorrow — although the survey was in September, before the recent banking crisis and Gordon Brown’s rescue package.

Eighty-eight per cent of the students want to be solicitors and 9 per cent barristers. More than half expect to have £20,000 worth of debt when they start training, although the average predicted debt is £15,300. A sizeable 15 per cent expect no debt at all, perhaps backed by families or sponsored by law firms or chambers.

Yet expectations remain high as to likely earnings. Those who took part in the survey anticipate that they will start on an average of £39,300 at a law firm or chambers which, for those who land a place, will wipe out any debt.

The biggest group, 38 per cent, favoured a job with a regional or medium-sized firm or set of chambers, closely followed by 36 per cent aspiring to a big commercial firm.

Pragmatically, perhaps, only 11 per cent picked the high street or a small chambers, but 14 per cent favoured the safer haven of the Government Legal Service or public sector.

Having landed that job, they think they are more likely to stay: three quarters believe that today’s solicitors will stay as long, or longer, than they would have three years ago. They blame the credit crunch and greater competition for fewer jobs, plus better training by law firms and a better match of recruits to the “right people”.

Seven in ten would take the chance to work abroad. The US is top of favoured destinations (38 per cent) followed by Australia (18 per cent). Least popular were India and China, despite their developing legal markets.

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