£21,000 pay packets for graduates

JOB prospects are booming for graduates for the first time since 2001. Starting salaries have hit £21,000 amid the first rise in vacancies for three years, according to a survey of blue-chip firms.

The most jobs and the highest wages are found in London and the South East, according to the poll for the Association of Graduate Recruiters.

London produced almost 40% of graduate vacancies, compared with the South East's 11.3%.

The poll of 223 large employers showed that demand for graduates should continue to rise next year as well, with 82% saying they expected to maintain or increase recruitment.

AGR members reported a 15.5% rise in vacancies, compared with falls of 3.4% last year and 6.5% in 2002. Average starting salaries rose by 3.4% from £20,300.

Accountancy and law firms and investment banks generated about 40% of the vacancies, with engineering companies and retailers at 8% each.

The survey indicated that recruitment conditions in the computing industry were recovering after several tough years. There was a 52% surge in information technology vacancies and a 50.9% jump in opportunities for junior investment bankers and fund managers.

But law firms reported a 1.3% increase in vacancies, while they plunged 35% at insurance companies. Investment banks paid £35,000, the highest starting salaries.

AGR chief executive Carl Gilleard said: 'The findings are good news for the graduate recruitment industry and great news for graduates themselves.'