Latest ISE data shows a slight increase on starting salaries this year.
Salaries play a key role in attracting graduates and school and college leavers to jobs, and then ensuring that they accept the offer.
This year’s ISE Student Recruitment Survey 2024, launching Thursday 17 October, shows the average graduate starting salary has increased 3% in the last year to £32,000.
Meanwhile the typical salary for school and college leavers increased 5% to £23,000. Intern and placement student salaries both rose by 4% from last year to £24,159 and £24,000, respectively.
Findings to ISE’s 2024 survey are based on 145 responses from ISE members – mainly large employers offering formal training and development programmes. It shows that salaries vary considerably across region and sector.
Region and sector differences
Graduates and school leavers looking for roles in the legal, digital or IT sectors, or in financial or professional services, will find them among the highest paid. Conversely, jobs in the built environment tend to be among the lowest paid.
Salaries also vary significantly between locations with jobs based in London often being the highest, averaging £34,000 for graduates and £24,700 for school and college leavers. Graduates working in the North East are among the lowest earners, starting out on £29,645 while school leavers earn £21,843.
A full sector and regional breakdown can be found in the report.
Economic influences
While ISE data shows salaries have been increasing gradually overtime, when adjusted relative to the Consumer Price Index, we can see the impact of recent high inflation and the cost-of-living crisis.
Compared to last year, all of the salaries for graduates, school and college leavers and internship and placement students increased in value, although graduate salaries continue to be worth less than they were a decade ago. Since 2021 graduate salaries have fallen in real terms by £3,559.
However, when we compare figures from ISE’s Student Development Survey 2024 we found that when graduates start work they can expect significant salary growth as they develop and get promoted through their training programmes.
When we compare a 2024 starting salary to someone who joined three years previously, we see a difference of £13,000, a compound growth rate of 12%.
For this year’s survey, ISE collaborated with the International Centre for Guidance Studies at the University of Derby. Next week on Insights the research team will delve deeper into salaries to provide a fuller picture of what’s happening and why.
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