What Salaries Do College Graduates Expect?
According to a recent survey conducted by real estate data company Clever, the average starting salary for college graduates in 2022 stood at $55,260, the highest so far on record. Recent graduates, however, overestimate their own starting salaries by nearly twice that much. The survey of 1,000 undergraduate students found that current college students expect to make nearly $104,000 in their first job. Students aren’t only hoping for high salaries, though. They also value:
FlexibilityWork-life balanceBenefits
In one College Pulse survey of undergraduates, 9 out of 10 favored a four-day work week, preferring to work four 9-hour days, rather than five 8-hour days, in order to have a three-day weekend. Two-thirds of respondents (66%) also said it was not okay for employers to expect employees to work more than 40 hours per week. A separate College Pulse survey found that college graduates have strong feelings about workplace culture. Around 77% of students said they were less willing than previous generations to put up with a toxic workplace in exchange for a paycheck. Previous surveys by College Pulse had also found that recent graduates place a high value on benefits packages, in addition to salary. A 2019 survey of 2,000 undergraduates (graduating 2019-2023) found that more than half (56%) of students said that a high-quality health plan was the best perk a company could offer to offset a lower-than-expected salary. Almost a quarter (24%) said that extra paid vacation time was a worthwhile counterbalance to below-average pay, and just 4% said they’d take stock options in lieu of a bigger paycheck. The same survey revealed that a majority (58%) of the polled students would choose a $60,000 annual salary with no stock options over a $50,000 annual salary with stock options. Male students were split evenly, while 63% of female students said they would take the higher salary.
Average Starting Salary Out of College by Field
The National Association of Colleges and Employers (NACE) projects that in 2022, starting salary will vary sharply by major and field. Those with science, technology, engineering, and mathematics (STEM) degrees will continue to earn the highest starting salaries. At $75,900, the average starting salary for computer science majors is more than 5% higher than the previous year’s salary projection. The projection for the average starting salary of a humanities major, by contrast, was down nearly 15% from 2021. Based on data analyzed by NACE, the average salaries by bachelor’s degree are:
Computer sciences: $75,900Engineering: $73,922Math and sciences: $66,760Social sciences: $61,173Business: $60,695Agriculture and natural resources: $57,807Communications: $55,455Humanities: $50,681
Early Career Majors That Pay the Most
Your choice of major can have an even bigger impact on future earnings than your choice of school. The majors with the highest earnings for college alumni early in their career (less than five years of work experience) are:
Electrical engineering and computer science: $108,500Physician assistant studies: $95,900Petroleum engineering: $93,200Operations research and industrial engineering: $84,800Operations research: $83,500Nuclear engineering technology: $83,500Metallurgical engineering: $81,800Computer science and business: $81,100Electronic systems technology (EST): $81,000Welding engineering: $81,000Marine engineering: $79,900
Average salaries for graduates with associates degrees also vary greatly by major. If you have a two-year degree, the highest-paid degrees for graduates are:
Dental hygiene: $69,400Nuclear medicine: $66,000Radiation therapy: $65,300Nuclear medicine technology: $63,600Instrumentation and control: $61,100
Early Career Majors That Pay the Least
According to the same report, the majors with the lowest earning for college alumni early in their career (less than five years of work experience) are:
Child and family studies: $36,400Biblical studies and practical ministries: $36,400Early childhood education: $36,100Mental health counseling: $36,100Medical assisting: $36,000Rehabilitation services: $35,800Equine studies: $35,700Psychology and human services: $35,600Painting and printmaking: $34,700Voice and opera: $34,500
Whatever your field of study, having a college degree automatically increases your chances of earning more. The average salary for someone with a four-year degree is more than double that of someone who didn’t graduate from high school. The exception to that rule, though, is graduates of trade and vocational schools. Plumbers, electricians, and other trade specialists earn generous hourly wages after completing their apprenticeships.
Average Salaries by Age, Gender, and Race
In general, wages tend to rise as you get older, peaking around age 55. After that, they begin to drop off. For all workers, not just those with a bachelor’s degree, average salaries by age are:
20-24 years: $35,56825-34 years: $50,70035-44 years: $60,06045-54 years: $60,94455-64 years: $58,96865 years and older: $55,484
Wages also vary by gender and race. On average, male graduates outearn female graduates by $10,980 if both have a bachelor’s degree. And for 24 to 35-year-olds with a bachelor’s degree, Asian graduates tend to be the highest earners ($69,490), followed by White ($59,970), Black ($50,030), and Hispanic ($49,910).
How to Improve Your Salary Prospects After College
No matter what your field, you can improve your chances of getting a higher salary at your first job out of college if you start your job search with research and preparation.
Get Salary Information
It’s important to know what you’re worth, whether you’re searching for your first job or you have years of experience. With more information, you will have a better sense of whether a job is offering a reasonable salary range for the area where you will be located. Knowing what others in your field are making will also put you in a position to negotiate your salary with potential employers. There are free online salary calculators you can use to get estimates, and PayScale offers a free personalized salary report. You can also use a paycheck calculator to estimate your take-home pay.
Prepare Your Materials
If you have work or internship experience to complement a skill set that employers are seeking in college grads, you may be able to boost your total compensation by driving a hard bargain during your job search. The more you do in college to prepare for the workplace, the higher your paycheck will be. Be sure to include everything applicable on your resume, so the hiring manager can see how well-qualified you are. Take advantage of your college’s career office to have someone look over your resume and cover letter. They’ll be able to see places for improvement that you, as an early-career applicant, might miss.
Consider Your Compensation Package
Salary isn’t everything, even though it can easily seem like the most important variable when you have student loans that are collecting interest. Total compensation accounts for more than what you see on your paycheck. This includes stock options, retirement planning, and other employer-provided benefits and perks. Some common items to look for in a total compensation statement are:
Salary/hourly rateMedical benefits coverage, including the amount paid by employee and employerFlexible spending account informationPaid leave, including vacation, sick leave, parental and family leave, paid time off, holiday pay, bereavement, military pay, and jury dutyDisability insuranceLife insuranceEmployee assistance programRetirement benefits, including 401(k)/403(b) and pension plansEducational assistance programsRelocation expensesLearning and development offeringsCareer-advancement opportunities
The Bottom Line
To make a critical decision when evaluating offers for your first job after college, it’s also important to consider factors like potential for personal advancement within the company, your general excitement about the day-to-day job responsibilities, and the overall work/life balance that employees enjoy. While interviewing, be sure to note how long each of your potential coworkers has been with the company, and ask them about their own motivations for joining (and staying with) the team.
