Graduates are set to earn record starting salaries when they leave university this summer but face unprecedented competition for the best jobs, according to figures from High Fliers Research.

It found that average starting salaries are likely to reach £25,500 at 100 top employers - £1,700 more than last year. However, the researchers warned that there would be more than 50 graduates applying for each vacancy.

Martin Birchall, managing director of High Fliers Research, says: “Record numbers of graduate vacancies at these popular organisations should help more of this year's university finalists land a well-paid job after graduation. However, the recent expansion of employers' graduate programmes has not kept pace with the huge rise in the number of students going to university over the past decade.”

Accountancy and professional services, investment banks and the armed forces were set to be the largest graduate employers this year.