Jump to content
House Price Crash Forum
PricedOutNative

Typical New Graduate Starts On £29,500

Recommended Posts

No economic based news seem clear anymore; take this Telegraph article that reports typical graduate starting pay this year as £29,500:

http://www.telegraph.co.uk/finance/jobs/10949825/Employers-receive-39-applications-for-every-graduate-job.html

If true, this is great news for graduates and the country as a whole as a starting salary at that level could justify the costs of University education and we should start to see a rise in other workers pay.

Friends of mine have kids that are approaching Uni age and the picture they paint is of many graduates attending less prestigious Universities is that they leave with lots of debt and end up in a job that would not traditionally have required a degree and are paid accordingly

Share this post


Link to post
Share on other sites

I suspect they are only counting jobs where the spec. explicitly asks for a graduate, not jobs that a graduate happens to be doing.

Share this post


Link to post
Share on other sites

I suspect they are only counting jobs where the spec. explicitly asks for a graduate, not jobs that a graduate happens to be doing.

And excluding graduates on Job Seekers Allowance.

Share this post


Link to post
Share on other sites

15years since i went to university and i still dont get 29k a year.

My friend was asking what i though about his daughter going to uni. I said my course could have fit in 1 year not 3 and did not really help me get a job in the computer world as the university taught outdated stuff. If by some miracle she can get apprentship do that or study part time and get a job in local university in comunity distance.

Share this post


Link to post
Share on other sites

15years since i went to university and i still dont get 29k a year.

My friend was asking what i though about his daughter going to uni. I said my course could have fit in 1 year not 3 and did not really help me get a job in the computer world as the university taught outdated stuff. If by some miracle she can get apprentship do that or study part time and get a job in local university in comunity distance.

Endless vocational courses, but if getting her hands mucky isnt for her, she could get ACCA (accounting), Chartered Tax Adviser (CTA), CIM Diploma in Professional Marketing qualifications or something similar off her own back to get a foot in the door, these qualifications are better and cheaper then a degree.

Besides everyone hates students!

http://www.cim.co.uk/Learn/Qualifications/MarketingQualifications.aspx

http://www.accaglobal.com/uk/en.html

http://www.tax.org.uk/

Share this post


Link to post
Share on other sites

I suspect they are only counting jobs where the spec. explicitly asks for a graduate, not jobs that a graduate happens to be doing.

Yes, it's absolutely this. According to the Office for National Statistics, 47% of recent graduates (as of 2013) end up in non-graduate jobs at least at the start of their careers:

http://www.theguardian.com/business/2013/nov/19/half-recent-uk-graduates-stuck-jobs-ons

Once these students and those that remain unemployed are factored in, I'd imagine that the average wage plummets down to somewhere between £16 - 20k pa.

Share this post


Link to post
Share on other sites

I suspect they are only counting jobs where the spec. explicitly asks for a graduate, not jobs that a graduate happens to be doing.

Don't spoil the propaganda, indeed I suspect it excludes those that didn't get the appropriate jobs and ended up as an Amazon drone, or perhaps the amazon drone is a graduate job these days anyway.

Also need to factor in the 50k worth of student debt and the fact that work started maybe 7 years later than it could have.....2 years 6th form, 4 years Uni and a gap year. Also the degree earnings gap will be exacerbated by the brightest going to Uni...no doubt grads. would have succeeded anyway by getting a job straight from school.

But carry on doing your duty and going to Uni....BTL and public sector staff are relying on it.

Edited by crashmonitor

Share this post


Link to post
Share on other sites

I suspect they are only counting jobs where the spec. explicitly asks for a graduate, not jobs that a graduate happens to be doing.

Yep.

The survey is based on responses from 100 leading graduate employers, including firms such as PwC, Jaguar Land Rover and Unilever.

The biggest numbers of vacancies are in accounting and professional services (4,442 vacancies available), the public sector (3,415 job openings), investment banking (2,148 openings) and engineering and industrial (1,650 vacancies).

Investment banks are offering the most generous starting salaries at around £45,000, it adds, followed by law firms (£39,500), while at the other end of the scale, those starting work in the public sector earn the lowest graduate pay at about £22,400.

This survey is only looking at a tiny proportion of the jobs that recent graduates end up getting and it's focused on large firms in high-paying industries like finance. It's not representative of all graduates.

Edit: The take-home message from this survey is "starting salaries in City finance and law are up."

Edited by Dorkins

Share this post


Link to post
Share on other sites

15years since i went to university and i still dont get 29k a year.

My friend was asking what i though about his daughter going to uni. I said my course could have fit in 1 year not 3 and did not really help me get a job in the computer world as the university taught outdated stuff. If by some miracle she can get apprentship do that or study part time and get a job in local university in comunity distance.

I'm sure this £29500 also depends on those who are willing to move (primarily to London). Remember the nominal value of money doesn't actually mean anything, you need to compare it against what it can buy you. If, say, for £29500, you can rent/buy a three bed house provide food on the table and work 9-5 Mon-Friday that is probably equivalent to someone on £50,000 in London.

Remember the cut that property owners take from everything. For instance, I can by a Americano coffee in West London for £2.75, in East London for £2.20 and in Bristol for £2.00. The coffee and ingredients are more-or-less the same, the labour costs at around minimum wage are probably around the same. The big difference will be the rent for the coffee shop, and that price is passed on to the consumer. You and I are paying landlords when an area becomes fashionable (i.e the middle class spend more of their disposable income there).

Constantly comparing statistics in a world of nominal values is pointless. It should be based on what you are able to do with your income and how much time you have to spend working to do it. If you came from Bulgaria, do you really think it matters if you are paid £6.35/hr or 5.35/hr if this wage means you can save for a deposit back home whilst living in a shared bedsit in the UK for 3 months. Its all about what you can do with money - money is simply a transfer of value it is not wealth. Wealth in the ownership of productive assets.

Share this post


Link to post
Share on other sites

I suspect they are only counting jobs where the spec. explicitly asks for a graduate, not jobs that a graduate happens to be doing.

Indeed. I think that these are the traditional 'graduate training scheme' type jobs from the large companies. There must be a tiny proportion of graduates that go into these roles, with the majority going into 'normal' graduate jobs, or those that don't require a degree at all.

If you look on the job boards, there are a lot of companies offering less than £29,500 but require a degree AND some previous experience. The vast majority of graduates will take a few years to earn as much as this average starting salary, and a lot will never make it.

Share this post


Link to post
Share on other sites

I work for a FTSE 100 company in London. We take on interns, often with Masters degrees, for between £100-£250 a week. If they make it to a full-time roll then they might be offered something in the region of £16k-20k. A few years down the line in their late 20s they might be making £25-£30k. There are some exceptions but that's the general gist of what happens here. £29.5k as an average starting salary? Nationally? Not in a million years.

Share this post


Link to post
Share on other sites

It was ever thus. I graduated in the late 80s and for a few years used to get sent a follow up salary survey from the University. It was all fed along to produce these national graduate salary stats. Of course it was all based on self reporting and only the people who were doing particularly well would respond, else you would make up a figure to reflect what you thought you ought to be paid :):):) .

In the first few years after I left, the only person I knew who got a salary even approaching the graduate "average" was a mate who dropped out of college before finals and so never got a degree anyway.

Share this post


Link to post
Share on other sites

So we're supposed to believe that the half of the country's youth graduating from uni command 10% more than the average salary?!?

There must be a concerted effort to talk up salaries today and generate some wage inflation.

Here's a property article out today that says salaries for those who rent are up 7% over the last 12 months...

Rents rising across UK on new tenancies

Rents are going up across the UK where new tenants are moving in, referencing firm HomeLet has said.

But the firm also says that tenants’ incomes are rising to match rent rises.

It says that in May, the average tenant signing a rental agreement had an income 7.2% higher than a year earlier.

The average new rent across the UK is now £846 a month, or £687 excluding Greater London – an annual rise of 2.5%.

Martin Totty, head of HomeLet’s parent firm Barbon, said: “The rental market is in robust shape.

“While rents are rising, there is not a shortage of tenants who are able to pay, and the return for investors in rental property looks secure.

“This is good news for tenants and landlords alike.

“We expect demand for rented accommodation to continue to rise, while investors will no doubt be attracted to the returns on offer in the sector if they are confident in tenants’ ability to pay.”

Share this post


Link to post
Share on other sites

Expect more propaganda about the benefits of a university degree as we approach 'A' level results time.

The next tranche of debt slaves is being groomed. :(

We're just herded like cattle really aren't we... :(

Share this post


Link to post
Share on other sites

"or perhaps the amazon drone is a graduate job these days anyway."

Probably much like someone stacking shelves is deemed an apprentice these days.

Not that I have anything against shelfstackers of course.

Share this post


Link to post
Share on other sites

Expect more propaganda about the benefits of a university degree as we approach 'A' level results time.

The next tranche of debt slaves is being groomed. :(

. . . by Michael Gove, who also takes an interest in schools . . .

Share this post


Link to post
Share on other sites

Yep.

This survey is only looking at a tiny proportion of the jobs that recent graduates end up getting and it's focused on large firms in high-paying industries like finance. It's not representative of all graduates.

Edit: The take-home message from this survey is "starting salaries in City finance and law are up."

If this were even remotely true and given the number of grads being pumped out you'd expect the UK wages stats to be skewed by these supposedly average graduate starting salaries.

By the time these 'typical' grads are peak earning at 38, they must be earning a fortune.

If they were real, that is.

Share this post


Link to post
Share on other sites

Yep.

This survey is only looking at a tiny proportion of the jobs that recent graduates end up getting and it's focused on large firms in high-paying industries like finance. It's not representative of all graduates.

Edit: The take-home message from this survey is "starting salaries in City finance and law are up."

The only one of those that's in finance is PWC, and they're accountants. Graduate starting salaries in accountancy are notoriously low: it's only when you qualify as a chartered beancounter those shoot up. It looks like the milk round, and I expect that's what the figure represents.

Comparison from 30 years ago: the typical graduate starting salary - for big companies explicitly out to recruit good grads - was in the £6k ballpark. Accountancy would've been about £5.1-5.2k. And you'd've paid a lot more of that in tax than on a £30k income today.

Share this post


Link to post
Share on other sites

If this were even remotely true and given the number of grads being pumped out you'd expect the UK wages stats to be skewed by these supposedly average graduate starting salaries.

By the time these 'typical' grads are peak earning at 38, they must be earning a fortune.

If they were real, that is.

They're not "typical grads", they're "typical grads who get accepted onto blue chip companies' graduate schemes." That doesn't change the fact that major employers offering 'good' jobs are increasing both recruitment and salaries...

As for their realness, my little brother's starting on one of these schemes in September, on a pay packet that is very much in line with what the article reports (and outside London/the south-east to boot). I'm pretty sure he's real.

Share this post


Link to post
Share on other sites

Sounds dodgy to me, unless by 'graduate' they mean anyone with a degree, even if they got it twenty years ago...

The national average is only 27k, and about half the 20-something population graduate now, so it can't be recent graduates.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   206 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.