Every day has been the same for Stephen Ristich, 25, since he finished his MSc at the London School of Economics last month.

He gets out of bed and goes to his computer to begin trawling the internet for jobs. “I didn't expect something to land in my lap, but I expected at least to find jobs that I could apply for based on my experience and skill set,” he said. “The big problem now is not finding enough positions even to apply to.”

This was not the case when he researched London job prospects last year from his native Canada, and found many opportunities. Now, he says: “A lot of the jobs in consulting, especially political and financial risk, have evaporated.”

Mr Ristich speaks five languages, has work experience and a graduate degree from one of Britain's top universities. He is considering going back to Canada after a year in London that has left him £20,000 in debt.

Juliet Kerr, 24, abandoned her London flat to move back into her parents' home in Essex while she keeps her eye on the London job market. She studied medicine and neuroscience at King's College London and Edinburgh University, and recently completed an MSc in global politics at LSE. Now she is about £6,000 in debt.

She said: “The aim was to be an aid worker. I wanted to work for an NGO.” But she has found little opportunity and is concerned that non-governmental organisations have had their budgets cut.

Now she spends her days trawling through employment websites. If she has no success, she is considering a move to the Middle East as it has not been hit by the financial crisis.

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