British companies are predicted to take on 6.2% more graduates than they did last year, with the private sector taking the majority of candidates.

According to new Incomes Data Services research, the market for high-flying graduates although buoyant, is still lower than last year’s growth of 7.2%.

Average starting salaries have increased by 3.4% to £21,415, although the gap between the lowest salaries of £14,000 and the highest of £30,000, commanded mainly by city law firms, is wide.

The private sector is expected to employ 10.8% more graduates while the public sector’s employment of graduates is predicted to fall by 1.5% this year.

The manufacturing industry is expected to employ an additional 16.5% over 2006 while the service sector is expected to employ 8.2% more.

Information for the survey, was provided by 100 graduate recruiters from companies that have dedicated graduate programmes.

“We found that marginally fewer graduates were going for jobs this year so the market was getting tighter even though there are more students graduating. Demand for them has increased as business prospects are improving,” said Steve Tatton editor of the IDS Executive Compensation Review.

“Major manufacturing companies are taking on a lot more graduates as they’re looking to the future and want to grow their own talent and skills. Also some companies are recruiting graduates for the first time. However, they

need to make the packages attractive to attract the graduates,” added Tatton.