The number of training contracts offered at law firms in England and Wales fell 10% in 2011-12 to the lowest level since 1999, according to new research by the Law Society.

The society's annual report shows that the number of training contracts registered in the 12 months leading to 31 July 2012 dropped to 4,869, down 10.5% from the previous year's equivalent total of 5,411.

The figures are at their lowest level since training contract details were first recorded in 1998-99, and 23% down on the pre-recession high of 6,303 in 2007-08.

The report also shows that new admissions to the solicitors profession dropped by a quarter in 2011-12, with numbers falling 24.6% to 6,330 from 8,402 the previous year.

Meanwhile, the number of English and Welsh law firms fell marginally during the year to 10,102, down from 10,202 in 2011, marking the lowest result since 2007 when 10,114 firms were counted.

Law Society chief executive Desmond Hudson said: "Tough economic conditions combined with legal services liberalisation, changes to legal aid funding and the civil costs regime are having a major impact on the business models of many firms.

"Law has become a highly competitive and fast-moving business environment. Despite this confluence of challenging trends, there are opportunities for dynamic, innovative and well-managed firms to thrive."

Female trainees accounted for a 60% majority in 2011-12, down 6% on the previous year, while nearly a quarter of trainee registrations were from black, Asian and ethnic minority groups.