The percentage of sixth-formers progressing into higher education has fallen from 60% in 2009 to 56% in 2010, according to Careers Wales.
Overall, the percentage of pupils continuing in full-time education at school, college or university fell from 80% in 2009 to 79% last year.
The dip in classroom learning coincided with a shift into the workplace, as 214 more 18-year-olds in Wales plumped for early employment.
Dr Philip Dixon, director of teaching union ATL Cymru, blamed spiralling costs for the "disturbing" fall in numbers going to university.
"The decline is doubtless to do with the thought of greater tuition fees and with the debt that youngsters think they will incur by studying higher education," he said.
"Obviously, some local authorities are working harder than others to ensure their youngsters get into higher education. That has to be applauded but their work must also be shared."
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