Graduate Careers Australia
ergo - Number 91 June 2003
Salary Prospects for Graduate in the US and UK
Mirroring the current uncertain climate in Australia, the latest Salary Survey report from the National Association of Colleges and Employers (NACE) in the United States, is somewhat bleak in its predictions for graduate employment over the coming months. The experience of the past year suggests that the downward revision in hire numbers across many of the major sectors employing graduates is set to continue or at best level out in the near future, although there is always the hope that the situation will turn around as the labour market and economy operate in cycles.
In-Demand Graduates
Nevertheless, the Salary Survey report for 2002 – 2003 suggests that even those graduates with the most in-demand degrees, such as business, engineering and education, could expect higher rates of employment but not necessarily substantially higher starting salaries, with only business graduates of these three registering an increase of 4.1% from the previous year. Another trend similar to the Australian experience is the continuing decrease in opportunities and salary levels for Computer Science graduates, whose average starting wages have fallen steadily over the past few years and which fell another 7.6% for 2002 – 2003.
Other areas to register a slight increase in the US over the past year were Engineering (approximately 0.5%), although Chemical Engineers registered an increase of 1.8%, and perhaps surprisingly Liberal Arts graduates also rose by 3.1%, buoyed by an increase in sales, trainee management and teaching positions. Despite the good news for some however, most US students surveyed who are soon to graduate believe that the paucity of opportunities will continue well into 2003 and perhaps beyond, prompting a greater reliance on “non-traditional” job-searching methods.
United Kingdom More Upbeat
By contrast, the United Kingdom seems a little more upbeat. The results of the Association of Graduate Recruiters (AGR) Graduate Recruitment Survey 2003 suggest that, while the graduate labour market remains uncertain in early 2003, the employers surveyed expected that they would increase salaries in a number of areas for new graduates. Overall, it is expected that the average level of all graduate salaries for new recruits in 2003 will lift by 2.5%, with a median starting salary of Ł20,000 predicted.
Cash Incentives Still Offered
Starting salaries are expected to be highest for those working in investment banking, financial consulting, as a solicitor or barrister, in actuarial work, information technology or in fast-moving consumer goods. Interestingly, one third of employers will continue to offer new graduates a cash bonus as an incentive, an indication that the rigorous competition for the brightest and most capable graduates is continuing through what has otherwise been a fairly flat period.
Other employment areas where graduates are likely to experience salary increases in the UK are logistics, human resources and purchasing, as well as engineering and general management. However, in some occupations where salaries are generally at the higher end of the table such as consulting, accountancy and sales, the status quo is likely to be maintained – it seems that the lower-paid areas of employment are to enjoy the largest increases in the immediate future.
Dugald McNaughtan
Communications Coordinator, gradlink
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