Good news for this year’s crop of jobseeking graduates - according to a new survey, average starting salaries have risen to £21,000 for the first time. The figure, based on the responses of 223 blue chip companies, represents a 3.4% increase on last year’s £20,300.



And not only that, the number of graduate vacancies has increased by a massive 15.5%, the first year-on-year rise since 2001.This news is particularly welcome as 2003 and 2002 saw drops of 3.4% and 6.5% respectively.



Carl Gilleard, chief executive of the Association of Graduate Recruiters, who conducted the survey, was quick to point out that it won’t just be students and graduates who are pleased with the results:



“The government will be encouraged by the report, which shows that there are increased vacancy levels at a time when the expansion of higher education is so high on the agenda,” he said.



Earlier this year, another AGR survey showed that the majority of firms canvassed thought there were currently too many graduates in the UK. Six out of ten even went as far as to claim that expanding higher education was actually responsible for a drop in graduate quality.



Nonetheless, education secretary, Charles Clarke has stuck by the government’s drive to see 50% of young people attending university by 2010; an expansion programme to be paid for in part by the introduction of highly controversial top-up fees. With the funding bill allowing universities to charge up to £3.000 in tuition fees having just been passed by the House of Lords, the new report couldn’t have come at a better time.



‘City’ professions offer most vacancies and best salaries



Needless to say London and the South East continue to produce the most jobs and the best salaries, while only 8% of new vacancies are to be found in Scotland, Wales and Northern Ireland, the areas paying the lowest wages.



40% of the UK’s total number of graduate vacancies is to be found in accountancy, law and investment banking. The latter also offers the best starting salaries, with an average of £35,000. Next comes management consultancy (£28,500) and law (£28,000).



Encouragingly, 82% of all employers questioned thought they would be able to either maintain or increase recruitment levels next year.



Carl Gilleard:



“Employers are providing graduates with training and development and a remuneration package that is competitive rather than extravagant, covering the cost of living increases.”