He now thinks that admitting to dyslexia was the reason.
The new independent Disability Rights Commission (DRC) will have the power to investigate cases of inequality at work and if necessary take legal action.
Owners and cinemas and restaurants could also be prosecuted if they do not provide adequate facilities.
The 15-strong commission is made up of 10 disabled people, and will draw the remaining five from business leaders and the trade union movement.
Minister for the Disabled, Margaret Hodge, is marking the launch of the commission - which is to have the same status as the Equal Opportunities Commission - on Wednesday.
However, it will come too late for dyslexic James Peace, who - despite gaining an upper second degree in international business management and sending out a large number of job applications - received only three replies, and no job offers.
He now thinks that admitting to dyslexia was the reason.
He told the BBC: "I filled in my application forms honestly, disclosing that I was disabled, but I was being penalised for being honest."
James is now working with Lloyds TSB to improve their policies for employing disabled graduates.
DRC chairman and wheelchair user Bert Massie said: "We know in many cases that people do not get jobs because employers do not understand that a disabled employee can be as good as anyone else.
"Some of the discrimination is inadvertent, but I think that through being able to advise people about what is available, we can help."
They have argued that unless it is properly funded, it will fail in its task, but ministers insist it will give real teeth to the 1995 Disability Rights Act.
The commission will take up the cause of both the physically and mentally disabled and will also advise the government on disabled issues.
It is expected that the new body will have a profound effect, protecting disabled people from discrimination in the workplace and from employers.
The commission already boasts among its members the first person with learning difficulties to be appointed to a government commission, 32-year-old Evelyne Rank-Petruzzietto.