Recent college grads watch starting salaries tumble
Given the hard time experienced workers are having finding jobs (much less securing raises), it comes as no surprise that recent college graduates are experiencing their own problems.A new survey from the National Association of Colleges and Employers found that those who graduated with bachelor's degrees in 2009 received an average starting salary of $48,633 -- down 1.2% from last year. Survey respondents also reported that the number of job offers fell by 20%.
According (subscription required) to The Wall Street Journal, "A preview of 2010 shows next year's graduates may face similar hardships. Employers expect to cut college-graduate hiring by 7%, a separate survey of 219 NACE employer members showed."These numbers are all bad, but not really any different from what you might expect given that we're in a recession. But it's when you combine it with this data point from the US Department of Education that it gets terrifying: Federal student loan volume grew 25% year over year during the 2008-2009 school year.
So people are borrowing more money to earn less working at fewer jobs. There is no possible way that that can end well. It's hard to see that leading anywhere other than an increase in student loan defaults -- and those default rates are already soaring.
Reader Comments (Page 1 of 1)
9-10-2009 @ 2:20PM
Mark said...
Seriously...Tubmle?!?! I can overlook the spelling and grammar errors in the article, but can't you at least get the headline right?
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9-10-2009 @ 9:54PM
Jeff said...
I agree with you Mark, however if you check again, you will see no mistake except for what you thought you saw...However I amire your effort.
9-15-2009 @ 3:50AM
gr8bsn said...
College has become a catch 22. It was an automatic ticket to a better job. I waited until I was 25 to start. It took me 5 years because I paid my way through. I had to give up a good full time job to do it because I chose to study full time. I worked part time and seasonal jobs and was able to pay the bills. Now that I am out of school, the economy has tanked and I find myself flooded in a job market full of college graduates. I'm having to work three part time jobs now. One pays for the student loans, the other two help me live. Employers don't care about education anymore, they want experience again, which I gave up for education at the time because education trumped experience when I started. If I could get my money back for the diploma, I would.
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9-22-2009 @ 3:13PM
Dani said...
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