More than three-quarters of medium-sized firms have frozen graduate recruitment for the next year – despite an increase in applications.

A survey of 82 firms with between 20 and 30 employees found that most firms planned to cut costs over the next 12 months.

Law firm referral service Contact Law found 56% of practices had seen an increase in CVs and job applications from graduates in recent months, but just 24% plan to recruit any graduates.

Less than a quarter of firms have increased their staff numbers in the past year, with 43% forced to make redundancies since 2009 because of the economic climate.

But those who are in employment can breathe a little easier, with just 5% of firms planning redundancies over the next six months.

Dan Watkins, director of Contact Law, said: ‘[Trainee] lawyers need to be prepared for a tough year, as firms concentrate on maintaining current staffing levels and put their recruitment drives on hold.

‘It also means that the competition for the few vacancies on offer will be fierce.

‘To improve their prospects of picking up a [training] contract, applicants may be wise to focus on firms which specialise in legal areas that have seen steady growth over the past two years, such as those specialising in family law, employment and commercial disputes.’