University students may have lost out over top-up tuition fees but their job prospects are looking brighter, according to the latest survey from the Association of Graduate Recruiters (AGR).

There will be 11.9% more vacancies for graduates compared with last year – reversing the decline of the last two years.

Sectors with the most vacancies for graduates will be banking, accountancy, retailing and engineering, while marketing and HR will have the fewest. It is also anticipated that the public sector will continue to target graduate recruits by upping salary levels.

AGR chief executive Carl Gilleard said: "This is good news for those seeking graduate level jobs in 2004 but there is no room for complacency. Competition for the best jobs will remain high and graduates need to be sure about what it is they have to offer employers and market themselves effectively."