The government wants more people to enter higher education

This is the lowest level recorded in the 10 years of the Graduate Careers Survey by High Fliers Research.

More than a quarter plan to undertake further study, while one in five are taking time off or travelling.

The survey comes amid a heated debate about whether the UK is simply producing too many graduates.

The government wants more young people to experience higher education. It said the findings were misleading and that going to university was "worthwhile".

JOB APPLICATIONS Media 11.8% Marketing 11.2% Teaching 11.1% Investment banking 10.5% Consulting 10.2% Accountancy 10.1%

Critics say more graduates are not needed.

On Wednesday, the British Chambers of Commerce said university admissions targets should be scrapped and instead there should be a much greater emphasis on skills training, even at degree level.

The latest survey is said to be the largest of its kind, involving face-to-face interviews with 15,915 final-year students - more than a fifth of those due to graduate this year from the 30 universities involved.

A fifth said they expected to start graduate jobs and a further 15% would be seeking such jobs.

The survey director, Martin Birchall, said: "There is a wide-spread feeling at the UK's top universities that there are not enough jobs available for new graduates and therefore student confidence in the employment market is extremely low.

UNIVERSITIES IN SURVEY Aston Bath Belfast Queens University Birmingham Bristol Cambridge Cardiff Dublin Trinity College Durham Edinburgh Exeter Glasgow Lancaster Leeds Liverpool London Imperial College London School of Economics London University College Loughborough Manchester Newcastle Nottingham Oxford Sheffield Southampton St Andrews Strathclyde UMIST Warwick York

"As a result, tens of thousands of final year students who are due to graduate this summer feel they have no choice but to extend their studies with a postgraduate course or take time away, in the hope that the job market may improve in the next year or two."

He said the findings "will make dismal reading for the government", particularly given their aim of increasing the number of school-leavers going to university and the planned introduction of variable tuition fees in England.

"Both these objectives rely on there being an increasing supply of well-paid graduate jobs so that students can repay the substantial costs of their studies after graduation - something which the majority of those graduating in 2004 simply do not believe is happening."

The survey suggested the most likely careers for the "Class of 2004" were in media, marketing, and teaching, with about one in 10 applying to each of those sectors.

Applications for careers in science, research and development were up 39% on last year.

More were aiming for better starting salaries and recognised graduate training programmes, with applications for investment banking and actuarial work both up 17%.

Conversely, areas with lower starting salaries had seen a drop - notably the civil service (down 26%).

The students expected to earn an average of �18,800 for their first job and London was once again their preferred location.

They expected to have debts of �10,300 on average - more than 75% higher than in 2001.

Higher education minister Alan Johnson said: "We simply do not accept these negative findings which go against the grain of other surveys and economic research.