Smaller cities offer the best job prospects for fresh graduates due to their steady demand for talent, a recent survey said.

About 61 percent of the university students who participated in the survey said they would like to accept job offers in China's second-and-third-tier cities after graduation. That compares with 46 percent in a similar survey conducted in 2011, said a report released on Tuesday by Zhilian Recruiting, a human resource firm.

Most of the respondents said they were encouraged by government's policies that seek to develop the western regions, while factors like higher living costs and tough job prospects are making big cities less appealing.

Only 38.7 percent of students were willing to stay in metropolises like Beijing, Shanghai and Guangzhou in 2013 while more than half of the college graduates had chosen these cities as preferred choices in 2011, said the report.

Guo Sheng, chief executive officer of Zhilian Recruiting, told Nanfang Daily in an interview that despite the tough market conditions, there is still a huge demand for talent in the labor market.

"College students are unable to find jobs because the knowledge and skills they have is not what the prospective employers want. Most of the companies prefer hire experienced workers, rather than newcomers."