New Grads' Starting Salaries Have Dropped 1.3%, Survey Says

Recent college graduates lucky enough to nab jobs are earning even less than their counterparts did a year ago, according to a recent survey.

The National Association of Colleges and Employers said in its quarterly report on salaries that 2010 graduates' average starting salary was $48,661, down 1.3 percent from the initial salaries of 2009 graduates.

People majoring in general studies saw some of the biggest drops in compensation, said Mimi Collins, communications director for NACE. The average offer for them tumbled 17.7 percent to $37,356.

A few industries bucked the trend, however, raising compensation for new hires. Offers for economics majors rose 2.1 percent to $50,885, while those studying finance got a 0.8 percent bump to $50,356.

In the technology field, salaries dropped slightly for computer science majors and those studying engineering. Information sciences grads' salaries increased 5.7 percent, however, to $55,084.

The biggest increase was in hospitality services management, where the average offer rose 10.6 percent to $44,397, said Collins.

NACE received information from the career services offices of 115 colleges nationwide in the nine months through June.

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Comments

[iblogleft]

02:56 PM on 07/15/2010

I think trashmen/women should demand 75k a year or stop picking up trash.

Sewer cleaners should do the same.

Let us see the high and mighty educated demand these "deserved" incomes when everyone is dying of disease by garbage piles in the streets.

[Alexia Parks]

07:59 PM on 07/14/2010

If you're a recent college grad and Census worker who is being "shown the door" consider this advice: Forget job-hopping. If you didn't tap into your passion in college, take some time out now to reinvent yourself. In today's blog, I've described Stanford U grad Will Ruddick who is doing just that ... in Africa.

[PenguinLinux]

12:46 PM on 07/14/2010

All,

Heed this advice. IF you are technically-inclined and minded, pursue networking and security in IT. IPv6 is coming down the pike and there will be enough available IP addresses so everything can be IP-addressable. (cars, phones, clocks, you name it). 10 to the 33rd power. Basically, every grain of sand on Earth could have its' own unique DNS-reachable IP address. Add onto that security. People will pay for that.

Look into Security related certs like the CISSP, Security+, etc.

[TriscuitsR4Pirates]

11:01 AM on 07/14/2010

cheesy gorditas and chalupas! I think wages are partly set by supply makes a lot of sense - there are tons of highly educated grads looking for jobs, and companies know they are desperate for work - so it's a big win for companies - talented workforce for cheaper wages equals more benefit - whereas the only advantage for grads is experience that takes time to build, i work for an American corporation that employs several thousand people in the apparel-industry and i make 28K with a Masters, they told me a Masters is not required - so we receive nearly equal pay as those with a Bachelors. In today's economy - many Bachelors students cannot find work, so they get their Masters, that's what I did - and from my experience the averages posted here are highly unreflective of what grads earn in the majority of sectors - but if you factor in the top 5 fields (accounting, finance, engineering, medical, business) - that will definitely raise the average, although with an MPA and 2 yrs of administrative exp- I make 28K, and my friend with an MBA at the same company - makes 26K. I think all grads should budget and choose their careers wisely - because it will determine the opportunities they have career and salary wise - and I think we will see a significant increase in career shifts among the workforce, and also, lower retention rates when the economy improves - meanwhile - the US

[MaxGrey]

09:16 AM on 07/14/2010

But Tuition is still rising! Good for them!

[flyovermark]

09:50 AM on 07/14/2010

"Them" who?!?!? College professors?

[MaxGrey]

09:59 AM on 07/14/2010

Sarcasm. Rising tuition and lowering salaries.. its a sure formula for a successful future isn't it?

[pablogalante]

09:14 AM on 07/14/2010

I have read some other survey going on about how its almost impossible to find work and a 2% drop is not that bad
problem is loans & living expenses with insurance etc
my kids all study in the uk http://www.studyabroaduniversity.com

[ShawnFSilver]

09:11 AM on 07/14/2010

Well, I felt great about getting a job with an English degree, until I saw these kingly starting salaries... I just graduated and I'm making a cool $28,000... I'm living with a Craigslist gamble of four roommates in an apartment and I feel like a millionaire.

But I guess I should be sad about that extra $20,000, because that means I can't buy all the... stuff... that I could otherwise buy?

[flyovermark]

09:44 AM on 07/14/2010

If you're ambitious enough to do that, why on earth don't you buy a house on a Craigslist gamble and let your roomates make the payments for you? Freddie and Fannie are all bailed-out and still giving mortgage loans to anyone that can breathe, so financing isn't a problem. Sure it's a risk, but on the upside, if you go bankrupt you get to walk away from the mortgage AND the student loans!

[PenguinLinux]

12:39 PM on 07/14/2010

You can't walk away from government debt, which is what student loans are. If you could walk away from them, then people could walk away from tax debt too. (Yes, I know.. the IRS isn't a government agency, but we're f-ed up like that in the USA.)

[Gaylord P Farqua]

09:02 AM on 07/14/2010

Lower employee salaries and fewer benefits produce more net at the bottom line. The bottom line is where the focus is and not on the employee. The recession gave corporations the green light to fire as many people as possible and impress upon those remaining the fear of losing their employment. As long as the market is up, bonuses are bigger, and regulations are not enforced business leaders are in a perfect situation. In the not to distant future they may even offer just room and board.

[Canajax]

09:16 AM on 07/14/2010

+1 That's a really good summation of one of the main causes of the increasing income disparities in the U.S.

[mbo2]

09:24 AM on 07/14/2010

The income disparities are between the U.S. and other countries. That's why there has been downward pressure. But expecting that we can cut our trade deficit at the same time that we think we can insulate our salaries from those pressures is wishful thinking.

[flyovermark]

09:20 AM on 07/14/2010

Golly, are you accusing corporations of selfishly focused on being profitable instead of providing much needed jobs? I'm shocked. SHOCKED I tell you, to learn that private business exists to make a profit for the owners!
(snicker)

[Canajax]

09:29 AM on 07/14/2010

Is this guy for real? I'm sort of thinking that he's trolling me, but I'm not quite sure.No one is actually this out of touch with civil society down there in the states are they? Even Sarah palin has to be acting right? Most of us up here in Canada think Palin is gunning to be the next bond girl. That's why she's trying so hard to be act like a villain right?

[flyovermark]

08:56 AM on 07/14/2010

America. We have good paying jobs, and great benefits. Which do you prefer?

[Canajax]

08:25 AM on 07/14/2010

Wow! I'm so glad I'm Canadian! I'm an undergrad student in Alberta, and in our province, the gov'mint has a program called the "student loan relief benefit". Any student loans that a student has above 28,156
for an undergrad degree are paid for by the government at the conclusion of studies. Hurray for the nanny state!!

[flyovermark]

08:37 AM on 07/14/2010

Wow! I'm so glad you're Canadian too! I don't have to pay more taxes to bail you out of your debts.

[flyovermark]

08:51 AM on 07/14/2010

...but in the spririt of "giving back a little for the next guy", you will.... (snicker)

[Canajax]

08:57 AM on 07/14/2010

Dude, take a look at total tax burden numbers. Canada has it way better in that respect. We also have higher incidences of positive health outcomes, higher average life satifaction, longer average lifespans, greater income parity, lower violent crime rates, lower poverty rates,higher literacy rates, higher percentage of population with advanced degrees, lower incidence of drug and alcohol abuse, a higher incidence of cops in red serge, and well, you get the idea. I guess our democratic socialist ideals have some merit. Then again we don't have to pay for imperial starships and storm troopers.

[MrBadExample]

07:42 AM on 07/14/2010

The salaries quoted here seem really high, but the reality is that the graduates making those salaries are carrying unprecedented levels of student debt. A young relative with promise was offered a tenured teaching position once she finishes her PHD--a plum position to be in, but the job doesn't pay enough to cover her rent and retire her student loans.

As for the lower unemployment rates for degree-holders, they're simply displacing other people from their jobs. That BA in English or Psychology is simply displacing some high-school grad from a job that generally has no future. And now, there's reverse discrimination against educated people on the specious grounds that they'll leave jobs they're 'too qualified' for.

One more thought--salary patterns follow people throughout their working lives. the young graduates with lousy pay are never going to earn as much as they would have if the economy had been strong at their graduation--something to keep in mind when looking at the generation that's going to have to support the Boomers as they retire.

[mirabay]

03:03 AM on 07/14/2010

oooohhhhhhhh, 1.3%. Does this mean they won't be able to get an ipad? Oops, their parents already bought them one. WOW spelled backwards is WOW............not sure how they will make it on 99,000 a year. Those student loans will kill them, oops their parents already paid them.

[multifarious]

06:58 AM on 07/14/2010

I think it's safe to assume that you never had college loans. Is that correct? Where anywhere in the article does it mention salaries even remotely approaching $99k/yr?

This article is about people not being able to find jobs and when they do they are at lower salary levels than people who graduated a year ago. And you want to blame them?????? For what, getting themselves educated?

The resentment shown towards people who actually try to educate themselves so that they can have more productive, better lives is ridiculous.

[flyovermark]

08:34 AM on 07/14/2010

I agree! We shouldn't resent people working towards more productive, better lives...

...as long as they don't make more than $250k... um, $200k... I mean, $150k... $100k... or, whatever it is that progressive-Americans say is too much... (snicker)

[PenguinLinux]

12:42 PM on 07/14/2010

True education does not come from an organization like the educational system.

[masher]

02:24 AM on 07/14/2010

It's the magic of federal regulations like H-1b. Just remember Democrat Bill Clinton signed H-1b into law. And during our worst recession Obama has maintained it.

[multifarious]

06:51 AM on 07/14/2010

H-1b has nothing to do with it. There are no jobs for anyone, natural born or immigrant.

[Jose 58]

02:21 AM on 07/14/2010

A recruiter told me years ago to get a technical degree or certificate after I got my business degree, I've rarely been out of work since taking that advice.

[mrskorn]

01:09 AM on 07/14/2010

Oh boo-hoo. When I graduated from college I had to work minimum wage for a while. (This during the glory Clinton years....) It took many years to get a 'regular' salary (40,000). It is no different today. Just because you have a college degree, it doesn't mean you start at a great salary. Work your way up or work more than one job people and quit whining.

[xlntcat]

02:41 AM on 07/14/2010

Depends on your chosen field and supply and demand in that field.