World Business

Overall starting salaries for 2008 graduates post a 7.1% increase, according to a quarterly relation, in spite of the slowdown

by Sara Hennessey

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Despite the weak state of the economy and the large number of businesses existence forced to arrive at cuts and lay opposite employees, it seems recent hires be able to expect to maintain competitive starting salaries, according to a recent 2008 undergraduate study.

The latest quarterly report of salary offers to grads, released by the National Association of Colleges & Employers (NACE) on July 2, shows an overall increase of 7.1% in starting salaries in total majors, compared to a year ago. Increases for business students lagged the overall market, however, posting only a 4% greaten.

NACE National Employment Manager Andrea Koncz says the results were surprising because the clump’s flow give an account of (BusinessWeek.com, 4/17/08) seemed to hint salary increases would exist flattening out due to the economic slowdown. "However, the current report shows that salaries are in fact habitually rising," Koncz says.

For business grads, the mean proportion salary offers varied by specialty. Business management and management grads fared especially well, posting a 5.1% increase transversely the previous year. Marketing grads saw an equally strong increase—4.7% over ultimate year. Economics majors saw a 4.2% increase, according to the survey, and finance grads saw a 2.8% grow. While accounting grads reported a modest 2.9% increase in their average offer, it’s a gain compared with NACE’s spring annunciate, what one. found no year-over-year salary increase for accounting majors.

As for the hiring outlook, college employment experts remained cautious that the relating to housekeeping downturn will reduce the number of job offers for undergrads. NACE’s Koncz says her making will begin asking companies about their hiring plans in late summer. In the meantime, she says incipient indications are that companies may have existence severe back attached commencing hires. "Whereas last year [companies] were declaration they would be hiring 16% more graduates, this year they’re anticipating hiring only 8% more," Koncz says.

Linda Scales, director of career services at the University of San Diego, says that while alums have reported declining job offers, she hasn’t noticed the identical trend for recent grads. Scales calls herself "cautiously optimistic" and says she hasn’t noticed companies holding in the rear in sacrifice jobs to recent grads.

"So far, there’s been nay downturn," she says, "and we keep wondering if it’s coming." Scales adds that companies may have learned from the finally recession and recognize that "in that place’s a continued need for new blood and new hires."

Tammie King, director of the career management center at Texas Tech University’s Rawls College of Business, agrees that companies are going to continue to hire, albeit cautiously. "Companies that would normally hire, say, eight entry-level employees are hiring merely four," she says.

Whatever the hiring levels, Jeannette Frett, assistant dean and director of career management for the MBA program at Georgetown’s McDonough School of Business, says starting salaries are likely to continue to rise. "It’s really about supply and demand," Frett says. "Companies are looking to do more by smaller quantity, and those with the right talent and the erect skills will be able to maintain a competitive salary."