Job seekers hand in their resumes at a job fair in Hangzhou on Tuesday, March 17, 2015. A newly released report said graduates from domestic colleges are being favored over those who studied overseas. Hu Yuanyong / For China Daily

BEIJING - This year, more than 7.49 million students will graduate from college, and many have voiced concern about seeking employment in such a saturated, competitive market, a survey published Thursday said.

The survey, by an organization under the Youth League Committee of Beijing, said graduate's expected monthly salary this year was 5,510 yuan ($889), up 1,830 yuan from 2014.

Xiong Hanzhong, who led the research team, said the salary increase reflected the rising cost of living, but warned that increased employee expectations meant firms were more selective with their candidate selection.

The report found that graduate's happiness dropped compared to last year.

In 2014 more than 7 million students graduated in China, this year half a million more will graduate and the trend is expected to continue.

The survey showed that about half of respondents hoped to work in second-tier cities, such as the seats of provinces, rather than mega cities like Beijing or Shanghai.

National policies were the most influencing factors for graduates seeking employment, followed by housing prices.

The team collated the answers from 15,000 valid questionnaires filled out by college students across the country.