The number of university applicants has dropped by 8.9% over the past year, according to the latest figures from UCAS.
This comes as no surprise, as many leading universities are demanding tuition fees of up to £9,000. But how will this reduced competition for places affect students when it comes to the job market?
In countries like China and South Korea college application rates are some of the highest in the world, but they also have some of the fiercest job markets. By that measure, reduced competition at an admissions level could potentially improve graduates' job prospects in the long term – but only if the number of applicants continues to drop.
Nicola Dandridge, chief executive of Universities UK, believes this is unlikely to happen. In a BBC interview earlier this year she said: "If we look at how the dip worked in 2006, which is when tuition fees were originally introduced, they did recover in subsequent years."
She adds: "If you look at the number of 18-year-olds then the dip is very much less, around about 4% in terms of applicants."
This may not have any measurable effect on the job market. In fact, some of the leading universities like Edinburgh, Durham and Nottingham enjoyed a marginal increase in applications this time around, meaning their students are even less likely to profit from the wholesale dip in applicants.
What's more, if you account for the 5.1% increase in applicants in 2011 the overall drop averages out at a much cooler 3.8%.
Stephen Mcaullife of the Nottingham University Careers and Employability Service says the drop in job applicants has been noticable. "This time last year you would expect to have 70 graduates competing for a single job. Today that's reduced to around 60."
If you examine the recruitment methods of employers today, better odds and fewer university applicants will not necessarily translate into more graduates being soaked up by major companies.
Stephen says that every year some of the top corporations in the UK reach the end of their recruitment cycle and about a quarter of them have hundreds of vacancies that they can't fill because they can't find the right graduate.
"Literally thousands apply for these positions. But the employers are looking for that difference; they're looking for someone who has been involved in sports and societies, who are confident they can work in a team, who has done work with charities and within the local community."
This all points to one conclusion: regardless of the level of competition, the biggest companies aren't prepared to lower their standards.
It's not just recruiters that decide the job market, though. Widespread cutbacks, combined with the number of professionals seeking a second career after the recession, may price some graduates out of the market.
But the demand still exists, and according to the annual High Fliers research report almost half of all students cite a "major national or international firm" as their preferred employer after graduation. By contrast, 20% are willing to settle for a smaller or mid-size company and just 9% expressed interest in the public sector.
One former student puts it perfectly when he says that the best option for students is to stop searching for a break and start knuckling down. Tom, an economics graduate from Manchester currently interning at HSBC, said: "No-one should expect these [UCAS] figures to make an iota of difference when it comes to finding a job in today's economy".
"You have to go into university with the mindset that the £9000+ you are paying per year is a drop in the ocean compared to your salary at graduation. Unless you strive for the best and take advantage of every opportunity the university has to offer then you may as well start looking for jobs elsewhere."
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