The graduate recruitment market is surviving the economic downturn despite recent gloomy forecasts, according to new research released today by the Association of Graduate Recruiters (AGR) at its annual conference.

The main findings from the survey, the largest independent survey of graduate employers, were:

Graduate level vacancies remain healthy with an 11.7% rise, but starting salaries are kept in check

Average starting salary is £24,500

Competition for jobs intensifies, with an average of more than 30 applications for most graduate vacancies

Employers begin to drop the 2:1 degree as the gold standard selection tool

Carl Gilleard, chief executive of the AGR, said: "The optimistic predictions of our Winter Review earlier in the year were rapidly overtaken by concerns about an economic downturn. The results of the 2008 survey present a mixed picture. They are surprisingly positive in relation to the number of vacancies available with a respectable increase across the sectors and good predicted growth for 2009. However, although employers are still hiring, this year's survey shows the smallest rise in graduate salaries in recent years and in most cases employers will offer no more than a cost of living rise next year."