The average college grad income for 2007 graduates is looking bright, according to a recent article by the Wall Street Journal. The financial bible cites a new survey released by the National Association of Colleges and Employers (NACE) which says the average college grad income is predicted to increase by 4.6%. In another survey by NACE, college recruiting is intensifying, so much so that businesses will reportedly be hiring 17% more graduates from 2007 than in the previous year.
Leading the pack of recruiters is the accounting and consulting firm Deloitte & Touche. According to Diane Borhani, head of U.S. campus recruiting, the firm is recruiting college grads, lots of them, close to 3,300 seniors, up from less than 3,100 in 2006. As part of its college grad job search, the firm has raised starting salaries and that dangling carrot known as the signing bonus. Borhani says that U.S. starting salaries (base) have increased around 5%, boosting the average college grad income to the 60K range – in certain jobs for recent college grads.
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Earnings for College Grads
The typical college grad entry level career job search has been reversed with consulting firms out in full force recruiting college grads. Consulting firms are not the only ones. Investment banks, tech, consumer products, nonprofits, government, and accounting firms are heavily recruiting college grads. What’s behind all this recruitment? A strong economy and corporate profits; in 2006, 1.8 million new jobs were created and the average weekly earnings increased by 4.5%, in contrast to a 3.2% gain in 2006.
As baby boomers approach retirement age, their imminent vacancies have proven to be a boom in earnings for college grads. According to Trudy Steinfeld, executive director of career development at New York University, 40% of NYU graduating seniors have job offers already – better than any year since the class of 1998-99, and up from 15% at the same time last year. Steinfeld says that starting salaries have increased from 5% to 10% (compared to 2006 offers) and a signing bonus can be as great as $10K.
According to money.cnn.com, this is the best job market for college grads in four years, with earnings for college grads increasing in these fields:
- Information sciences and systems: Up 7.5 percent to $47,182
- Economics/finance: Up 6.2 percent to $44,588
- Civil engineering: Up 5.3 percent to $46,084
- Chemical engineering: Up 4.9 percent to $56,269
- Accounting: Up 4.6 percent to $44,928
- Business administration/management: Up 4.2 percent to $41,155
- History: Up 4.2 percent to $33,071
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Dr. Al Lee