Research suggests that young employees have seen their salaries rise as a result of increased competition.
The typical pay for graduates rose to £30,500 in 2021, up by £833, while school leavers saw a jump of £1,039, according to the Institute of Student of Employers (ISE).
Stephen Isherwood is the company’s boss and stated, “employers want to be able to compete in a difficult market for talent.”
According to the study, there was also a record number of candidates for each job.
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The survey found that companies received an average of 91 applications for each graduate job vacancy, which is 17% more than last year. This is also the largest number of applications since 1999, when the ISE began collecting data.
The 2020 cohort has competed for employment against the 2021 group, which was born in the year of the pandemic.
Chaeyld Cassimir-Thomas received a First class degree in law in last year, but she has had difficulty finding work in this field. She currently works for a recruiting agency.
“I have been applying for over 100 jobs within the country and abroad in the past two months. [legal profession]”
“It didn’t meet my expectations about what my graduate life would look like.”
Chaeyld hoped she would be able to pursue a variety of career opportunities, “even if law is a difficult sector to enter”, given her qualifications.
“I’m hopeful for tomorrow,” she says. “But it has been hard for me and a few friends who are also graduating.”
However, the 177 survey respondents, all large employers of young and students, said that the job market has not returned to its pre-pandemic level.
Professor Isherwood stated that graduates’ salaries had stagnated after 2008’s financial crisis.
He said that the increase in salaries indicates that business costs have gone up. This is “another indicator that businesses must invest more in graduate hiring”.
The market forces will dictate how durable this can be. He said that if the economy recovers at a rapid pace, the young talent market will be more competitive. Employers will have to spend more in order to attract the best candidates.”
Retail and tourism were the most sought-after roles in the survey, with 182 applicants per vacant position.
The competition was fierce for positions in the pharmaceutical and health industry after the pandemic. Each job saw 155 applicants. The survey revealed that nearly 120 students applied for positions in financial services and professional services.
In September, bosses polled predicted growth in all sectors through 2022.
The researchers also predicted that the number of internships and graduate jobs would rise to levels not seen before the pandemic.
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