Graduate salaries are failing to rise with inflation
which is seeing them fall for the third year in a
row
As graduate salaries fall short of keeping up
with rising inflation, a report by Incomes Data Services (IDS) said
that with the competition for graduate jobs and schemes there is no
need for employers to offer higher wages.
When businesses are recruiting graduates they
usually have to offer a competitive package to attract the best
candidates, however because of the competition there is no need to
increase graduate salaries. Graduates average starting salary was
£25,100 in 2010 which was an increase of 1 per cent compared to RPI
inflation not falling below 3.7 per cent all year.
IDS also predict that two out of three
employers plan to freeze their graduate
recruitment. Jessica Evans, of IDS, said: "With employers
maintaining a guarded approach to setting starting salaries in
2011, there seems to be no let-up in the squeeze on graduate pay as
employers continue to keep a lid on costs. Even though the demand
for graduate recruits is showing some signs of revival, the
competition for places means that employers are under little
pressure to increase current rates despite high inflation."
With graduate applicants per job been up 25
per cent on 2009 (44), the IDS has warned that the figure could be
even higher in 2011 and unemployed graduates must broaden their
graduate job
search. With graduate debt set to triple the news that graduate
salaries are not set to increase. The number of graduate vacancies
in the UK also saw a slow down in March after a promising start to
the year, suggesting that the economic recovery is still slow.
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