Latest news: Graduate salaries rise at last

Starting salaries for graduates are set to rise in 2012 for the first time in three years, according to a new survey published today by the Association of Graduate Recruiters (AGR) . 26/01/2012

The average starting salary will grow from £25,000 to £26,000 this year, an increase of 4% and the biggest growth since 2005, according to figures from AGR’s Graduate Recruitment Winter Survey.

The recession meant that graduate salaries had faced an unprecedented three-year period of stagnation between 2009 and 2011. However, this year’s increase also beats those between 2006 and 2008, when salaries increased by just 2% each year.

‘The predicted increase to graduate salaries is significant and sizeable, particularly given the context of starting salaries remaining stagnant for the past three years. This will no doubt be welcome news to the government and the higher education sector, but moreover to graduates themselves,’ said AGR chief executive Carl Gilleard.

Graduate vacancies grew by 1.7% in 2011, but are expected to drop down again this year.

‘The findings show that the market is predicted to remain relatively stable, which is a relief and should be seen as good news against an uncertain national, European and global economy. With the job market intrinsically linked to business confidence, I am cautiously optimistic for graduate recruitment in 2012 and it is encouraging to see that only a slight drop is predicted,’ he added.