As a fresh college graduate, you are excited to finally enter the workforce armed with the knowledge and skills you’ve acquired from years of studying. But before you get too excited about the idea of earning a big paycheck, you might want to take a reality check first.
According to a survey conducted by Real Estate Witch, a part of the real estate site Clever, in March, today’s undergraduates expect to make around $84,855 one year after graduation. Unfortunately, the average starting salary for recent graduates is just shy of $56,000, which is a significant difference of nearly $30,000.
The survey also found that although 97% of students would consider lowering their salary expectations, they wouldn’t work for less than $72,580, on average, at their first job. This means that even though graduates are willing to compromise, they still have unrealistic expectations about their earning potential.
The gap between perception and reality only widens over time. After ten years into their careers, graduates anticipate making over $204,560, which is well above the average mid-career salary of $98,647, according to Glassdoor.
The job market for new college graduates remains strong, with employers planning to hire around 4% more graduates from this year’s class than they hired from the class of 2022, according to a report from the National Association of Colleges and Employers (NACE). Although this is lower than earlier projections, the overall outlook remains positive for the class of 2023.
However, it’s important to note that the average starting salary for this year’s crop of graduates is projected to level off, according to a separate survey by NACE. High-paying disciplines such as engineering, math, or computer science will pay nearly the same or lower than last year.
As of April, businesses paid new workers 6.6% less than new hires last year, although the salary declines were more pronounced in finance, insurance, and other professional services, according to data from payroll provider Gusto.
While it’s understandable to want a good salary, recent or soon-to-be grads entering the job market should prioritize gaining experience over earning a big paycheck. As Luke Pardue, an economist at Gusto, explains, “If they can gain the skills, they can parlay that into a better job later on.”
So, to all the new college graduates out there, keep your expectations realistic and focus on gaining the experience and skills you need to advance in your chosen career. The road to success may not always be easy, but with hard work, dedication, and a willingness to learn, you can achieve your goals and build a bright future for yourself.