Graduate vacancies are predicted to grow for the fourth year running, according to the Association of Graduate Recruiters (AGR).

The AGR Graduate Recruitment Survey 2007: Winter Review reveals that the number of vacancies for graduates entering the job market in 2007 is predicted to increase by 15.1%, significantly higher than last year¹s actual vacancy increase of 5.2%.

However, the continued rise in vacancies is not accompanied by a similar hike in starting salaries, with the median graduate starting salary is expected to rise by just 2.1% to £23,431. This predicted salary increase is the lowest for six years.

This increase in vacancies for graduate entry-level positions continues to provide recruiters with challenges - over 40% of those surveyed anticipate difficulties in filling all positions in 2007.

Employers cited a number of recruitment challenges including a lack of applicants with the right combination of skill, right qualifications for specific job roles and issues with specific geographical locations.

Carl Gilleard, chief executive of the AGR, says: "There is, however, a continuing anticipation that there will be some difficulty in filling vacancies. The main shortfalls appear to be in industries where specific qualifications are essential, such as construction and engineering, and where applicants are unable to demonstrate the right combination of Œsofter¹ skills such as team-working, in addition to their academic achievements."