Graduates set for a happy new year as average salaries exceed 20K

Salaries for graduate positions will be higher than ever this summer, with graduates able to command an average salary of 21,997*, according to the latest Graduate Market Trends report (published 11 January 2005) by Graduate Prospects.

Providing yet further evidence of the value of a degree, the report reveals that while salaries range from 13,242 to 36,000, around a quarter will actually start far above the national average at 25,000.

With three quarters of all vacancies (75.8 per cent) open to graduates from any degree discipline, employers are sending a clear message as to the role of all degrees in distinguishing candidates, rating the ësoftí skills that university equips students with over specific subject knowledge. Where specific degrees are required, disciplines most in demand are engineering and technology (8.5 per cent of vacancies).

London remains the graduate recruitment hot spot for vacancies in the UK, with one in seven (13.9 per cent) of vacancies advertised in London, and with the highest mean salary at 26,591. The South East still has the second highest number of vacancies though the number advertised is just 4.3 per cent. In 47.5 per cent of vacancies the exact UK region was unknown.

One in five vacancies (19.3 per cent) are actually for posts overseas, the majority of which (74 per cent) tend to be for jobs teaching English. The figures point to a developing trend for this kind of post-university ìgap yearî where graduates teach abroad for a year, giving them the chance to gain unique experience and make money while they consider their options.

Mike Hill, chief executive of Graduate Prospects, said:

ìItís great to see graduates being rewarded for their skill-set. The report really underlines the value of a degree to those entering the job market. However, the high salaries also point towards a very competitive market place but todayís graduates are more industrious than ever, using work experience and time abroad to bolster their employability.î

In terms of destinations, positions in the management consultancy sector command the highest mean salary at 34,724, followed by the oil, mining and extractive industries at 26,474. Management consultancy also had the highest number of vacancies (9.9 per cent), followed by banks and building societies (9.1 per cent) and civil service and local government (7.7 per cent).

The three positions offering the highest salary were in banking and retail management positions, while the lowest were offered in the voluntary and hospitality sectors. In fact, the average salary for sales, retail and buying jobs is only marginally below the average, at 21,796 reflecting how the UKís love affair with shopping has had a beneficial knock on effect on graduate recruitment.

While finance, insurance, pensions and actuarial work make up the majority of positions advertised in London and the South East (26.7 per cent and 16.3 per cent respectively), engineering is actually the second most buoyant in the South East, contributing to 15.8 per cent of the regionís vacancies.

Vacancies in IT have increased by over a third from a year ago and the mean salary, 24,711, is one of the highest. The high salaries offered to IT professionals are mainly attributed to companies in the chemical, oil, food manufacturing and banking sectors.

Graduate Market Trends presents a detailed analysis of the 14,076 vacancies advertised in the 2004/5 issue of Prospects Directory published in September 2004.