"Cautious optimism" over graduate jobs as salaries set to rise

Average graduate salaries are expected to climb by four per cent in 2012 to £26,000, ending three years of stagnation and fuelling "cautious optimism" for jobs.

In its latest bi-annual survey of labour market conditions, the Association of Graduate Recruiters (AGR) said that the predicted rise in wages would be the biggest since 2005. It added that typical pay for university leavers had increased by two per cent a year between 2006 and 2008 but growth had flat-lined 2009, 2010 and 2011.

Meanwhile, the report showed that graduate vacancies had increased by 1.7 per cent last year but are expected to drop by 1.2 per cent in 2012.

Despite the projected fall, AGR chief executive Carl Gilleard said that given the current economic climate, the figures on vacancies are fairly positive.

"The findings show that the market is predicted to remain relatively stable, which is a relief and should be seen as good news against an uncertain national, European and global economy," he added.

"With the job market intrinsically linked to business confidence, I am cautiously optimistic for graduate recruitment in 2012 and it is encouraging to see that only a slight drop is predicted."