You are here: Home - Saving & Banking - News -

Starting salaries for graduate jobs ‘fall 11% over five years’

Written by:
Starting salaries for graduate jobs have fallen over the past five years, according to new research.
Starting salaries for graduate jobs ‘fall 11% over five years’

Analysis for found salaries for graduates in professional employment dropped by 11 per cent to £21,702 in real terms between 2007 and 2012.

The research shows that the decline is continuing and perhaps increasing.

Between 2005-2010, graduate-type starting salaries declined by 4 per cent, after adjustment for inflation, the guide said.

Only two subject areas – materials technology and librarianship & information management – showed an increase in starting salaries, of 13 per cent and 3 per cent respectively.

Even medicine and dentistry – which had the highest starting salaries in 2007 – experienced reductions of 15 per cent and 9 per cent respectively.

Just as important for graduates as the starting salary is the graduate premium – the difference between starting salaries in graduate-type and other employment.

Building showed the greatest increase in the gap between graduates entering professional-type jobs and those in non-graduate employment. A building graduate taking up a graduate-type job in 2007 would have had a £4,045 advantage over a fellow student entering non-graduate work, when adjusted for inflation. By 2012, the differential has increased to £7,174, a rise of 77 per cent.

The average for all subjects where there were sufficient numbers to be analysed remained level, showing a 0 per cent change from 2007-2012. The differential, after adjustment for inflation, actually fell marginally from £6,732 to £6,717.

Dr Bernard Kingston, principal author of, said: “These figures show a continuing decline in the graduate premium across many subjects, and must be a concern to students when choosing what to study at university when tuition fees of up to £9,000 a year in England and Wales.

“It is helpful for young people considering which subject to choose to see how the earning potential for the occupations for which they may qualify changes over a short time. While financial returns should not be the only consideration, they are becoming more important, whether we like it or not. However, with a volatile labour market, it is difficult to predict the future for any particular subject.”


Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Investor confidence in bonds and international equities grows

Private investor confidence in bonds and non-European equities surged last month, according to research from Lloyds Bank.