That's good news for young Australians who have more options but bad news for a nation already dealing with a skills shortage and an ageing population.

Universities Australia's latest report shows 216,134 people applied for an undergraduate place nationwide in 2008.

That's 2,403 (or 1.1 per cent) fewer than last year.

There were 2,741 fewer offers (down 1.5 per cent) and 9,172 fewer acceptances (down 6.5 per cent).

Unmet demand - the number of people who miss out on a place - is at its lowest level since 2001.

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