Graduate starting salaries have always been a leading factor behind graduates' career decisions; however, in 2024, it's become even more critical due to the ongoing cost of living crisis, with 91% of students being somewhat or very worried about the rising cost of living and 69% of students worrying about money either daily or weekly. This financial strain has added greater importance to starting salaries, with salary expectations of students increasing from £27,900 in 2022 to £33,500 in 2023.
Given this, we wanted to shed light on the current state of graduate salaries, and hence, analysed 4,779 graduate job postings on Huzzle, which disclose salary information. In summary, our analysis found that the average starting salary of graduate roles on Huzzle was £28,102, with a median of £27,500. 36% of salaries fell below £25,000, while 32% ranged between £25,001 and £30,000. Salaries between £30,001 and £35,000 represented 23%, and only 9% of roles offered more than £35,000. This data underscores how much starting salaries can vary, and in this report, we examine how starting salaries can be affected by factors such as location, industry, and company size.
Location plays a pivotal role in determining graduate salaries, particularly as many graduates aspire to work in London, a city often perceived as the epicenter of career opportunities in the UK. However, this popularity leads to fierce competition for roles, sometimes overshadowing the potential benefits of working in other cities. While London offers some of the highest starting salaries, the cost of living is significantly higher compared to other regions, which can offset the benefits of a higher wage. For graduates, considering alternative locations where salaries are competitive, but the cost of living is more manageable, can be a wise decision.
Our analysis reveals intriguing variations in average graduate salaries across major UK cities. While London is unsurprisingly found towards the top of the list, offering a mean salary close to £30,000, several other cities also present strong earning potentials, including Aberdeen, Belfast, and Edinburgh, Leeds, and Bristol. Surprisingly, cities like Manchester and Birmingham, which are often seen as significant business hubs, report lower mean salaries, around £27,000 and £26,000 respectively. This data suggests that while these cities may be attractive for their job opportunities, the financial rewards may not be as high as expected.
Expanding the focus to broader regions, we observe that Southern Regions, including London, lead the way, with the highest average salaries. Meanwhile, Scotland, Yorkshire, and Northern Ireland all offer similarly attractive starting salaries, far exceeding Northern England.
When examining the percentage of roles in each city that offer above-average salaries, some cities stand out. Edinburgh leads the way with 67% of roles offering salaries above the data’s average, followed by Bristol at 64% and Aberdeen and Belfast both at 61%. These figures highlight that certain cities, though smaller or less internationally renowned than London, provide substantial earning potential for graduates. On the other hand, Birmingham lags significantly behind, with only 28% of roles exceeding the average salary, again suggesting that while it may have a robust job market, the financial rewards are more modest.
The impact of location on salary is strongly influenced by the industry in which a graduate works. Certain cities in the UK have emerged as key hubs for specific industries, offering higher average salaries compared to others. Below is a detailed breakdown of the highest average salaries in each industry by location:
This data demonstrates that cities like Belfast, Aberdeen, and Leeds are not only competitive but sometimes outperform London in specific industries. For example, Belfast leads in Accounting & Tax and Data, while Aberdeen excels in Architecture, Construction, IT, and Software Engineering. Leeds also stands out, particularly in Banking & Finance, HR & Administration, and Research & Development.
In summary, while London remains a key destination for graduates seeking high starting salaries, several other cities and regions across the UK offer competitive wages, often coupled with a lower cost of living. This data-driven insight into graduate salaries highlights the importance of considering both location and industry when making early career decisions, enabling graduates to optimise their earning potential in a complex and varied job market.
Graduate salaries can vary significantly depending on the industry, with certain sectors offering notably higher entry-level wages compared to others. In 2024, our analysis of graduate salaries across different industries reveals important trends that can guide early-career professionals and inform recruitment strategies.
The chart provided illustrates the average salaries across various industries, showing that the Customer Relations sector leads with a mean of around £40,500, making it the highest paying industry in our study. This is followed closely by Product Development, where the average salary reaches £40,000. Other high-paying industries include Healthcare (£37,786) and Government & Politics (£36,258), which offer competitive salaries reflecting the demand for specialised skills and the high-stakes nature of work in these fields.
Industries like Banking & Finance, Consulting, and Legal also offer solid starting salaries, averaging between £30,000 and £35,000. These sectors are often seen as stable and prestigious, making them attractive to many graduates. The salaries in these industries tend to reflect the intensive training and high level of expertise required, as well as the competitive nature of these fields.
On the other end of the spectrum, industries such as Media & Journalism (£26,775) and Creative Arts & Fashion (£29,499) report lower average salaries. These sectors are known for their creative and often less financially driven nature, which is reflected in the starting wages. While these fields may offer other forms of job satisfaction, such as creative freedom and personal fulfilment, the lower financial rewards are a critical consideration for graduates entering these industries.
Company size is a significant factor influencing graduate salaries, and understanding this relationship is key for both job seekers and recruiters. In 2024, as organisations of all sizes continue to adapt to changing economic landscapes, the salary expectations and offerings vary widely depending on the scale of the company. Our analysis sheds light on how these differences manifest across various company sizes, providing valuable insights for early-career professionals and those responsible for recruitment strategies.
The chart provided illustrates the average salaries across different company sizes, revealing some interesting patterns. Generally, there is a clear trend where larger companies tend to offer higher average salaries to graduates. This is likely due to the greater financial resources and more structured compensation packages available within these organisations.
The data highlights the potential financial benefits of targeting larger companies during their job search, as these organisations generally offer higher starting salaries. However, it is also important to consider other factors such as company culture, career development opportunities, and job security, which can vary significantly between small and large firms.
In conclusion, while larger companies tend to offer higher salaries to graduates, both job seekers and employers must weigh financial compensation against other critical factors. Understanding these dynamics is essential for making informed decisions in the competitive early-career job market.
The 2024 graduate salary analysis highlights the significant influence of location, industry, and company size on early-career earnings. London remains a salary leader, but cities like Edinburgh, Belfast, and Aberdeen also offer competitive pay, often with a lower cost of living. Industry choice is crucial, with sectors like Customer Relations, Product Development, and Healthcare offering higher salaries, while creative fields provide more modest compensation. Larger companies tend to pay more, but smaller firms offer unique growth opportunities.
Graduates must consider these factors holistically to align their financial goals with career aspirations. For recruiters, emphasizing benefits beyond salary, such as career progression and company culture, is vital for attracting talent. In this dynamic job market, informed decisions are key to success. Our goal is to provide data-driven insights that empower both graduates and recruiters to make strategic choices in early careers.
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© All rights reserved by Huzzle | Contact: hello@huzzle.app
