London and the South East are fuelling the demand for degree holders, generating the highest wages and the most jobs, according to the poll for the Association of Graduate Recruiters.
Just 8% of new graduate vacancies were to be found in Scotland, Wales and Northern Ireland, which also paid the lowest salaries.
The poll of 223 large employers showed that demand for graduates should continue to rise next year as well, with 82% saying they expected to maintain or increase recruitment.
In 2004, AGR members reported a 15.5% rise in vacancies, compared with falls of 3.4% and 6.5% respectively in 2003 and 2002.
Average starting salaries rose by 3.4% from last year's figure of '20,300.
Accountancy and law firms, together with investment banks, generated about 40% of the vacancies, with engineering companies and retailers each contributing around 8% of the new posts.
London's jobs market produced just under 40% of graduate openings, compared with the South East's 11.3%.
Scotland had 4.5% of the new graduate posts, Wales 1.9% and Northern Ireland 1.6%.
North West
The South West of England generated 7.3% of the vacancies, the North West 6.5%, Yorkshire 3.8%, East Anglia 3.2% and the North East 2.6%.
The survey indicated that recruitment conditions in the computing industry were recovering after several tough years in the wake of the dotcom bubble-burst.
There was a 52% surge in information technology vacancies and a 50.9% jump in opportunities for junior investment bankers and fund managers.
By contrast, law firms reported a 1.3% increase in vacancies, while they plunged 35% at insurance companies.
Investment banking continued to pay the highest starting salaries - this year they reached '35,000.
Management consulting and law took second and third places in the pay chart, paying their entry-level graduates an average of '28,500 and '28,000 respectively.
The public sector lagged some way behind, with average starting salaries coming in at '19,700, up by less - 3.1% - than for the graduate market as a whole this year.
AGR chief executive Carl Gilleard said: "The findings are good news for the graduate recruitment industry and great news for graduates themselves.
"Vacancy levels have risen and we expect both salaries and vacancies to continue to remain stable in 2005.
"The days of escalating starting salaries for graduates appear to be over.
"Employers are providing graduates with training and development and a remuneration package that is competitive rather than extravagant, covering the cost of living increases."
He added: "The Government will be encouraged by the report, which shows that there are increased vacancy levels at a time when the expansion of higher education is so high on the agenda." Tweet
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The B#21 000 stating salary may be for some graduates, but not those from ethnic minorities. As a 2:1 graduate, excellent A level results who has been working since 16 years of age, I am facing rejection everyday for jobs that do not involve cleaning or caring. Despite the fact I have to apply for jobs as low as B#7.50 an hour. Britain needs to open their minds and the door for people like myself who just want a work.
graduates,B#21k its outrageous,i worked for 8 years to get even close to this amount with completing various high level courses at night over a period of 7 years and working every day of the week,graduates should come in at the bottom and learn a lesson in life not come in spouting silly ideas and then moved on within six months,and there ideas binned as some other snotty 21 year old comes in with a better idea that still doesnt work believe me i have seen them come and go
As I graduate this year, i've been finding it increasingly difficult to find any job, nevermind a graduate placement. It is difficult to find anything within Physics in Greater Manchester that's not teaching. I've worked since 16 and as a future Physics graduate i'm forced to work as a manager at a well known fast food company. Along side me are 16/17 year olds without qualifications who are earning the same! I just wonder now why I bothered to do a degree in Physics when I could have done a degree in Business and be able to apply for more jobs.