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It’s good news for students and graduates hunting for the best jobs – this year’s recruitment round is predicted to be one of the busiest for years.

University leavers in 2006 will benefit from a significant increase in the number of graduate-level jobs available, along with a rise in average pay, according to industry researchers.

Some of the biggest UK employers are expected to recruit in record numbers compared to recent years, with the accountancy sector set to take on the largest share of graduates.

High Fliers Research, which conducted a study of the UK's top 100 companies, found that the number of graduate jobs is expected to increase by just under 11 per cent compared with last year – a rise of 22 per cent over the last two years. Starting salaries have also risen by 5.8 per cent - above the rate of inflation - over the same period.

But experts warn that although there will be more opportunities, increased competition means that landing the best jobs will still be extremely tough.

About 260,000 students will leave university in the summer, chasing fewer than 90,000 graduate-level vacancies. Just over half of the 100 employers reviewed for the research have already closed applications for their 2006 programmes.

The Graduate Market in 2006 survey revealed that more than half of employers featured in The Times Top 100 Graduate Employers plan to hire more graduates this year than last.

Accountancy and professional services make up the fastest-growing sector as well as the largest recruiter of graduates, with vacancies expected to rise by 28.8 per cent from last year. The ‘big four’ accountancy firms provide one quarter of the graduate opportunities in the 100 companies polled.

The largest graduate recruiters this year are PricewaterhouseCoopers and Deloitte, which each has 1,200 vacancies, and the army, which is expected to take on 1,000 university-leavers this year.

Investment banks and fund managers are also recruiting hard, increasing the number of graduate positions by 18 per cent this year.

The public sector remains a major employer of graduates – with 16 per cent of the total graduate sector - but this year’s vacancy levels are unchanged since 2005.

Media organisations, oil and energy companies and law firms all plan to recruit more graduates in 2006. Other sectors planning to step up their graduate programmes include consumer goods companies, consulting firms and engineering and industrial employers. However, graduate opportunities in some key areas are set to decrease. One-fifth, in banking and finance, IT and telecoms and the pharmaceutical and chemical industry say they are reducing their graduate intake.

The number of vacancies varies widely between firms, with one in five only expecting to recruit under 50 graduates, but one sixth set to recruit more than 250.

Many jobs remain centred around the capital, especially those in finance. While more than three quarters of the UK’s leading employers are hiring for graduate vacancies in London or the South East of England this year, fewer than half are looking to recruit for positions in Wales, Scotland or Northern Ireland.

The survey found that employers were most likely to target Manchester, Warwick and Cambridge universities for future employees.

Salaries for new graduates have increased, with average starting salaries from the larger employers standing at £23,800 – up three per cent, about £700, on last year. One leading graduate programme in three now offers a package of at least £27,500.

But its investment banks and law firms that continue to offer the very best salaries, paying an average of £35,000 and £29,000 respectively. The retail sector offers the lowest graduate salaries, with an average of £21,500. Public sector, engineering and industrial companies, and accounting firms were also on the lower end of the pay scale.

Martin Birchall, managing director of High Fliers Research, said: ‘Record numbers of graduate vacancies at many top employers should help more of this year's university finalists land a well-paid job after graduation.’

But he warned that while the outlook looked bright for graduates, competition for places on the most prestigious graduate schemes would remain intense.

He said: 'Competition to hire the best students remained intense but the large rise in the student population means that many graduates expecting to move into some of these very highly paid careers will be disappointed.

‘As around a third of the best-known employers have already closed their applications for 2006, the best advice for final-year students hoping to begin work at the end of their degrees is to start job hunting as soon as possible.’

Ten largest graduate employers in 2006
PricewaterhouseCoopers - 1,200 vacancies
Deloitte - 1,200 vacancies
The Army - 1,000 vacancies
KPMG - 850 vacancies
Accenture - 550 vacancies
Ernst & Young - 550 vacancies
HSBC - 400 vacancies
Barclays Capital - 400 vacancies
Bloomberg - 350 vacancies
JP Morgan – 350 vacancies

Key points of survey
- The number of graduate vacancies is to increase by nearly 11 per cent.
- Average pay is up three per cent since last year to nearly £24,000.
- Investment banking is the best payer – at £35,000 – followed by law at £29,000.
- Graduate hiring by the Big Four accountancy firms has increased by 50 per cent since 2004.
- Investment banking has 900 more graduate vacancies in 2006 than it did two years ago.
- Although it is the third largest recruiter, the public sector has not increased its graduate intake in the past year.
- Three quarters of the jobs are in London and the South East.
- 260,000 students will graduate this year – but there’s only 90,000 graduate vacancies.

Companies Recruiting