Monday, 16 April 2012

Graduate starting salaries not expected to fall

New small survey of graduate employers from Incomes Data Services today (full report costs £335).

Some observations. First the sample is 109 employers, so it's moderately sized, slightly larger than High Fliers, but not as big as the AGR's survey - although it's 3 months on, and the way the economy has been moving around, that's useful.

Second, unlike the AGR survey, IDS reports an increase in vacancies this year, but another year of no increase in salaries. Have thing changed that much since January, or does this just reflect sample differences? To be honest, it's more likely the latter. We're probably really going to see not much change in vacancies or starting salaries this year as things stand.

The median starting salary for graduates is quoted as £25,000, which, of course, it isn't. The median salary for graduates getting jobs at the large, mainly London-based organisations surveyed by IDS might be, but the median starting salary for graduates will probably be a hair below £20,000 this year, again.

It's also interesting that IDS are another organisation saying that graduate recruitment to the public sector will increase this year. Again, it might to the organisations the IDS are surveying, but to the public sector as a whole - I wouldn't bet on it.

The quote from Nasreen Rahman of IDS has an interesting insight:

“With economic sentiment picking up, employers are starting to expand their graduate programmes further, with some employers now re-opening schemes that had been put on ice during the downturn.”

...but with economic sentiment swinging like a pendulum (today's news from Ernst and Young is not terribly positive), we'll probably see more twists and turns before summer.