New graduates are facing worse starting salaries
this summer than if they had graduated 10 years ago
cost of living is starting to outpace the increase in graduate
salaries, with graduate salaries falling to their lowest level
since 2003 according to a recent report from the Incomes Data
The current typical pay rate for an entry
level graduate job
is frozen at £25,000, but when looking at inflation rates graduates
face a 2% pay cut from last year (£18,705). The last time salaries
were this low was 9 years ago when they stood at £18,524, with a
peak over this decade of £20,601 in 2008.
Nasreen Rahman, principal researcher at IDS,
said: "It remains a buyer's market for graduate recruiters
this year, with starting salaries set to stagnate for a further
"High rates of price inflation over the last
few years have been eating away at the purchasing power of starting
salaries for new graduates."
The study found that 9 in 10 graduate
employers intend to freeze graduate pay rates this year, despite a
similar number looking to employ more university leavers compared
to last year.
The demand for graduates is showing signs of
improvement, yet competition for graduate jobs means that employers
are able to keep the current rates as graduates become desperate to
land a job. There were 46 applicants chasing every job in 2011
which was up 12% on the previous year, with unemployment in the UK
set to remain at a 17 year high according to recent figures.