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Graduate salary growth 'falling'
Wednesday, 14 November 2007
Life after graduation
Starting salaries for new graduates have seen only marginal increases this year, with growth falling behind the rate of inflation for average earnings, according to a new survey.
Conducting its 18th annual graduate recruitment survey, Employment Review found that the median starting salary for new graduates was £20,100 this year, up only three per cent compared to 2006.
However, average earnings taken across the economy as a whole have risen by 3.5 per cent over the same period, suggesting that employers are finding it more difficult to find suitable graduates. In fact, at one quarter of organisations, graduate salaries actually stayed the same as they were last year.
Although 185,000 students graduate every year, 59 per cent of companies felt that most candidates were now lacking key attributes such as motivation and business awareness, while 56 per cent said that it was hard to find anyone with appropriate technical or vocational qualifications.
The survey revealed that most employers view graduate starting salaries as fixed, with only 26 per cent willing to negotiate. More than half (58 per cent) operate a single starting salary for all graduates within their organisation.