New graduates will be in for a shock.
Although the job market and starting salaries for the 2022 class look significantly better than in the previous year, they are likely to fall well short of the expectations of the graduates.
According to a report by the National Association of Colleges and Employers, employers plan to hire about 31% more new graduates from this year’s graduating class than from the class of 2021.
The increased demand for labor is also driving up the starting salaries of some majors, according to NACE.
The average starting salary for this year’s graduates is projected to exceed $50,000 based on the latest data.
However, current college students expect to earn twice that — $103,880 — on their first job, according to a separate survey by Real Estate Witch in March of college students pursuing bachelor’s degrees.
Students across all disciplines and institutions overestimated their starting salaries by 88%, Real estate witch found.
Ten years into their careers, the students expect to earn more than $200,000, well above the average mid-career salary of $132,497.
In fact, salary projections for the class of 2022 vary widely based on concentration range.
Employers projected that starting salaries would increase by 5.4% for math and science majors and decrease by 14.8% for humanities majors, NACE found.
Overall, computer science majors are likely to be paid the highest right out of college, earning an average of $75,900, followed by engineering graduates.
‘Students really want to understand the recruitment demand and starting salaries in their major because they are different,’ said Mary Gatta, Director of Research and Public Policy at NACE.
That underscores the importance of careers advice and services, she added. “It’s also an equity issue,” Gatta said. The idea is that wage transparency leads to wage equity, which is essentially equal pay for work of equal or comparable value, regardless of worker gender, race, or any other demographic category.
“Educating students and workers can make a difference when we think about salary negotiations – it’s a way to break down systemic barriers.”
https://www.cnbc.com/2022/04/29/study-says-college-graduates-overestimate-starting-salaries-by-50000.html According to a study, college graduates overestimate starting salaries by $50,000