Great News For College Grads: Starting Salaries Are Finally Back To Where They Were 10 Years Ago!

Tyler Durden's picture

The Wall Street Journal and others are cheering today as a new study from executive search firm Korn Ferry International found that the "average base pay for college grads this year ticked to the highest level in at least a decade."  We guess in the new millennial world that getting back to your original starting point is actually celebrated as an 'accomplishment'.

“This has been the best year for students that I’ve seen since coming here,” said Thomas Ward, executive director of the career-services center at Adelphi University, in Garden City, N.Y., who joined the school in 2008. Some students at the school are fielding multiple job offers, allowing students to be choosier about where they ultimately land, he said. “It’s very rewarding.”

So where are new college graduates earning the most bank?  Well, average starting salaries for 2017 grads are just under $50,000 but software developers, engineers and actuaries, particularly those moving to San Francisco, can be expected to outperform that average by quite a bit. 

Here are the top 10 money makers for grads:

 

Of course, while this may all seem like a lot of money, with median rents in San Francisco still hovering around $3,200 per month that means that the average college graduate will be about $5,000 short of covering their annual rent payments...so looks like mom and dad will still get to cover a substantial portion of their daily living costs.

San Fran

 

Meanwhile, on the bottom of the earnings rankings we find "category assistants", whatever that is, and "call center specialists", which we're almost certain could be done without a $250,000 college degree...but what do we know?

 

Of course, higher salaries are only helpful if you're among the graduates fortunate enough to find a job after graduation.  As we recently pointed out, according to the following chart from Bloomberg, there are 2.2 million millennials who live at home with mom but neither attend classes nor have a job.  Of those, 40% of them are already in their 30's, they're predominantly white and have a high school diploma of less.

 

But we would hate to rain on the daily parade of our snowflakes...so congrats on the "good news" day.

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Shizzmoney's picture

suckers!*

 

*it's really fucked up, tho.  Us young people will get blamed for it too, when most of us took on this debt because we wanted to "contribute" to society that tells us having a good "career" is the goal of life.

ACP's picture

"Of course, while this may all seem like a lot of money, with median rents in San Francisco still hovering around $3,200 per month that means that the average college graduate will be about $5,000 short of covering their annual rent payments...so looks like mom and dad will still get to cover a substantial portion of their daily living costs."

 

Good. Suck the lifeblood out of the doucheheads that created the left coast in the first place.

Creepy_Azz_Crackaah's picture

Why aren't the most popular new college grad jobs listed?  Barista, waiter, bartender, taxi driver, Uber driver.

Lost in translation's picture

You were lied to and deceived, deliberately. There's no question.

However where I am, the 138 undergrads I know, will not listen. At. All.

Showing them the figures for true inflation, actual unemployment, stagnant wages in chart form, graphs, schedules, et cetera, does not sway them. Interviews with Williams, Schiff, Kirby, Roberts, Armstrong, et al does not move them. I can talk - yell, even - until I am blue in the face, but they will not hear.

In the end they lever up, borrow to the hilt, sign their future away. Every last cent that Mr. Dimon offers them, they take.

Not sure about your situation or personal experience, but seeing you on ZH sets you light years beyond your demographic peer group.

HedgeJunkie's picture

Had a conversation with my millennial younger son earlier today, he wants to finance a car while working a Starbucks and attending college. It's aseven year note at 10+%. Tried to tell him he could have one of the fully paid off, more than four years old (by a decade), pieces of shit to get around town in for no cost.

He's set on financing a car. Stupid son of a bitch.

Skateboarder's picture

My buddy DannyH got a $500 Ford Focus at the end of hi-skool and it lasted him a good four years before he sold it for exactly the same amount lol.

DontWorry's picture

Plus, you get to compete with an Indian on an H1B Visa who got a 'college degree'for $300.

 

CJgipper's picture

I hate snowflakes just as much as the next gen x'r, almost half as much as we hate boomers, but this situation is beyond them.  The dig at them celebrating breaking even as an accomplishment is uncalled for.  They SHOULD be celebrating their wins.  And getting to even in this economy is most definitely a win.  Unnecessary roughness Tyler's.

Cordeezy's picture

Bad news..... must have experience for entry level positions to get this salary

www.escapeamazon.com

tripletail's picture

Tripletail shite!

pitz's picture

Only problem is, the number of jobs in the engineering/software industry is quite minimal.  Especially for US citizens. 

Stan522's picture

Not for snowflakes that get majors that are completely useless.....

Geeze... make yourself worth something marketable.....!

Joe Camel's picture

Starting salaries are where they were 10 years ago, but the cost of food and housing has increased by 50%+ over the last 10 years. That is if you can get employment in the area you studied in college.

Green_Ivy's picture

Now that salaries are up,  companies will want H1B visas to outsource the jobs.  College graduates are too dumb to think about these issues when they vote, though.

GoldRulesPaperDrools's picture

The best field of study for the next ten years will be "Gunsmith" or "Armorer" I predict ...

MOAR GUNS AND AMMO BITCHEZ!!!  PREPARE FOR THE DEPOPULATION!!!  IT WILL BE GLORIOUS!!! ;)

LetThemEatRand's picture

I broke my smartphone the other day so was looking at online reviews for a replacement.  I don't need or want a high end phone, so I was looking at low- to mid-range.  Something that makes/receives calls, emails and texts.  I was amazed at how many comments from readers of the various reviews for the budget phones were basically saying that you are a piece of shit of you don't buy the latest greatest.  I am leaping to conclusions in thinking these were from mostly younger people, but I can't help but think so.

HedgeJunkie's picture

Up to last Saturday I used a prepaid trackphone. I'm not a chatty Kathy, so $40 would usually last for five to six months. It wasn't glamourous, and I only carried it in case of breakdown here in the desert.

My older son finally returned from fifteen years in Afghanistan, and he handed me this fancy phone that I'm using now.

It's ducking expensive, $25 per month, but I can now type this shit on Zero Hedge without the ads blasting and freezing my screen for tens of minutes.

To be honest, I liked the austerity of the Tracfone flip phone. I called it my Taliphone.

Telemakhos's picture

Not on the salary list: contingent faculty (the adjuncts, grad students, etc. who now teach something like two-thirds of all classes). Adjuncts alone make up half the teaching staff.  Actual tenured or tenure-track professors are basically extinct. Adjuncts, after all, are far cheaper: they only get $31K/year on average. So, the amount of money going to hire faculty is decreasing dramatically and salaries for faculty are going down the toilet. Meanwhile, tuition skyrockets.

Huh.

At least the grads have some hope: regardless of where they were on the salary survey Tyler quotes, including down on the "call center specialist" end of the spectrum, they'll still make more money their first year with a BA than the adjunct faculty with PhDs and years of experience who taught them.

HedgeJunkie's picture

"...those who can't, teach."

CJgipper's picture

A lot of adjuncts are also industry people who know way more than PhD "proffessors".  That's actually beneficial to students.  Tenured professors were worthless in my experience except for a handful of research and. Side contractor types at the engineering school.

 

But yeah, that brings costs down, not up.  What a scam.

smallbedbug's picture

Starting salary at Linkedin, Google and FB is around $90,000.00. 

pitz's picture

Not very much money given the odds of actually getting a job with one of those companies.  Or even an interview.  Last I heard, they received 2000 applications per position, and mostly only hired their former interns. 

CJgipper's picture

Or the fact that those jobs are in California where taxes take 50% and an apartment will cost you 3-4k per month leaving you with 5-15k spending money in one of the most expensive places in the world.

rejected's picture

The Wall Street Journal...

Well, that explains everything.

yogibear's picture

Corporations will  flood the US with millions more from India again to keep downward pressure on wages  in many fields.

Willing to work long hours with low pay. 

 

CJgipper's picture

And be shipped back of they look for a better job.   Indentured servitude.

whatswhat1@yahoo.com's picture

no problem - hurry up and... - there you go - real quick - yes, no - -------- wtf!

 

Most of them aren't worth shit.

Manipuflation's picture

What if I don't want to work for them?  My degree is worthless because I know the the truth.  No one will hire me. 

HR should be fired.

Tell me a time when you...  Shut the fuck up moron.  Tell my how much debt you are in and how you will get out of it.

Don't hire that guy.

HedgeJunkie's picture

My turnover is miniscule, hiring going forward will always include questions about triggers we need to avoid, expectations of advancement and a hand-written questionnaires that include manual math questions (as in no calculator provided).

Panic Mode's picture

AFAIK, not all software developers will continue that path. A few move up to the managerial posts and these days there are a lot less managerial posts available. Also there are lots of shit developers that can't keep up with the pace of technology movement. They just fell behind, shit at their jobs & eventually change of career. I have seen so many. Outsource to India doesn't work either. It's a myth. They are either really shit or half of the staff disappear in one week. Projects are often ended in half arse. A lot of senior developers trying to stick to their comfort zone in what they learnt at the college. It's just doesn't work that way. You have to constantly adapt, it really is a mad race.

Only the good ones (I would say around 30% - 40%) can continue the developer path. Technology have pretty flattened company structure these days. A small software company can survive with 2 - 3 people, everyone call themselves CEO & directors. 

I myself got a PhD and published two technical books and I won't even say the whole industry is that great. I really doubt the starting salary is that range, perhaps in California but no way it's anywhere near that figure in Europe. Probably trying to lure more snowflakes getting into loan for a college degree.

BTW, you don't need a college degree to be a developer. There are so much materials (documents & videos) on the internet and the quality is very high. If you can put down real effort, you can self-taught and become one. There is one guy impressed me most in my career. His depth of knowledge and programming skill are way better than PhDs and Cambridge graduates that I have worked with. He didn't even have a degree but his passion in computing is shocking.

Panic Mode's picture

AFAIK, not all software developers will continue that path. A few move up to the managerial posts and these days there are a lot less managerial posts available. Also there are lots of shit developers that can't keep up with the pace of technology. They just fell behind, shit at their jobs & eventually change of career. I have seen so many. Outsource to India doesn't work either. It's a myth. They are either really shit or half of the staff disappear in one week. Projects are often ended in half arse. A lot of senior developers trying to stick to their comfort zone in what they learnt at the college. It's just doesn't work that way. You have to constantly adapt, it really is a mad race.

Only the good ones (I would say around 30% - 40%) can continue the developer path for decades. You have to spend a significant amount of spare time (evenings & weekends) to keep up. Also, technology have pretty flattened company structure these days. A small software company can survive with 2 - 3 people, everyone call themselves CEO & directors. 

I myself got a PhD and published two technical books and I won't even say the whole industry is that great. I really doubt the starting salary is that range, perhaps in California but no way it's anywhere near that figure in Europe. Probably trying to lure more snowflakes getting into loan for a college degree.

BTW, you don't need a college degree to be a developer. There are so much materials (documents & videos) on the internet and the quality is very high. If you can put down real effort, you can self-taught and become one. There is one guy impressed me most in my career. His depth of knowledge and programming skill are way better than PhDs and Cambridge graduates that I have worked with. He didn't even have a degree but his passion in computing is shocking. He is not arrogant either with a "can do" attitude.

Last of the Middle Class's picture

and with 10 trillion in QE, cars, houses, groceries, and you guessed it Health insurance premiums are up anywhere from 100 to 1000%!! Enjoy! But, hey, I think you can still get your dick cut off an a brand new vagina installed on the government's tab.

J J Pettigrew's picture

Do they teach college goers about how the HB1 Visas are fucking them?

Obama and the non enforcement...

or would their heads cave in at the thought...??

Remember Obama blasting those who outsource?  And then the non enforcement of overstayed visas....etc...

how poetic...

brushhog's picture

I graduated in 1995...22 years ago and my first job was in sales, base salary 35k + commisions. I averaged about 42k per year. This was not considered a fantastic salary for a college grad, kind of average. This was 22 years ago! If you believe the government, we've had apprx 2% inflation per year so thats 44%.

So to make the same as I did in 1995 a new graduate taking a run-of-the-mill sales job would have to earn 60k+ ( the same as an engineer now, according to the chart ). Thats not in san fran.

CJgipper's picture

Sales is a much better choice for you than engineering or finance.  2% yoy inflation for 22 years is more like 100% inflation than 44%.

 

Bit yeah, your point is spot on.

 

By the way, if you calculate based on costs from 1970, minimum wage then is over 100k now.  For example, working Christmas and summer, you could pay college and living expenses for the year.  Today, college and living expenses would be a minimum of 40k per year.  Making 40k in 4 months means you're working a job that pays 120k if you stayed all year.

brushhog's picture

You're right there is a compounding effect to inflation so it is actually quite a bit more than 44% but it would take about 36 years for inflation to reach 100%.

tangent's picture

There is only one job coming up: software developer. Either program the robots, or be replaced by them.

CJgipper's picture

Mechanical maintenance jobs will still be prevalent too.

silverer's picture

And for the rest of the good news: Millennials, you give up whatever work you do for free. Your compensation is zeroes and ones created on a keyboard, and paper printed with words and symbols, created at virtually no cost to the issuer. Good luck.

foodstampbarry's picture

You figure 26000 student loan debt, sometimes much more and you're only making 10 bucks an hour. Lol -  Welcome to hell bitchez.

Blazing in BC's picture

College an University were created as a place for the offspring of the rich to go and show that they're also smart, cause they got a piece of paper that says so.

Then they realized that there were tons of suckers out there.