Graduate starting salaries frozen

Updated: 
MoneyStarting salaries for graduates are predicted to fall this year, dropping to the lowest level since 2003, with most employers planning to freeze rates, a new report has showed.

Nine out of 10 will not increase starting pay rates this year, a survey of more than 100 employers with graduate entry training programmes revealed.

Incomes Data Services (IDS) said its study showed that median starting salaries for graduates will be £25,000, unchanged from 2011, but when adjusted to account for inflation, it effectively amounted to a pay cut.


Nasreen Rahman of IDS said this year would be a "buyer's market" for graduate recruiters, with starting salaries stagnating, adding: "High rates of price inflation over the last few years have been eating away at the purchasing power of starting salaries for new graduates.

"Even though the demand for graduate recruits is showing signs of revival, the competition for places means that employers are under little pressure to increase current rates, despite high inflation."

IDS said the number of applicants for every graduate vacancy increased from 41 to 46 in the past year.

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