Shanghai has inaugurated its first job fair for university graduates this year. As the job market continues to look tough, young people are encouraged to eye smaller firms as the first step in their career.

Early Saturday morning, they started queuing outside the venue one hour before the event began. A record number of graduates and a barely growing job pool has made them realize they have to be practical.

A univaersity graduate at Shanghai Job Fair said, "This year the employment pressure is quite big. Good jobs like those in banks are difficult to find. Other jobs require experience. So it's difficult."

464 companies showed up, offering six thousand jobs. 80 percent are for small, private firms.

Graduates say that private firms offer opportunities for the less experienced. It's better to gain experience in smaller companies than to struggle at big state firms.

A university graduate at Shanghai Job Fair said, "I think personal ambition should adjust to practical situations. You can't reach big targets without taking the first step. Everyone wants to work for big state firms. I think small private firms may offer me more development space."

168,000 students will graduate in 2010 in Shanghai, 10 thousand more than last year. Local authorities say they will organize 80 job fairs this year and enhance online employment information.

Wang Sheping, student Dept. head, Shanghai Education Committee, said, "Every employer in Shanghai can use the Internet for employment information. Every student has uploaded their resume online."

Mao Dali, deputy head of Shanghai Bureay of Human Resources, said, "We will continue to encourage and mobilize all our state firms and private firms to increase some jobs."

But the official added, the employment situation this year will continue to be generally tough.