Twenty nine graduates are chasing every vacancy, triggering a slow down in entry level salaries.

These are the findings from the latest research by the Association of Graduate Recruiters (AGR). The predicted average salary is £23,500 for graduates entering the jobs market this year, signalling a modest increase of just 2.4 per cent.

According to the survey authors, bosses are optimistic that they will fill all their vacancies despite the salary slowdown. Graduate level positions are anticipated to rise for the fourth consecutive year, by 12.7 per cent, with over two-thirds expecting to fill all their vacancies.

Accountancy and professional services provided the majority of vacancies (23 per cent), followed by banking or financial services (12.2 per cent), which boasts the highest average starting salary of £37,000, and engineering or industrial companies (9.3 per cent).

The highest proportion of vacancies are available in London (43.3 per cent).

Carl Gilleard, chief executive of AGR, said: “Recruiters are more optimistic about any potential shortfall in filling their graduate level roles than they were earlier in the year. This perhaps indicates that graduates are realising that academic achievements are not enough to secure a position, and are focusing on developing softer skills such as team-working when applying for graduate-level positions.”