Post-Grad Salary: Is Gen Z Expecting Too Much?

Today’s job market is booming. Department of Labor data shows job openings are historically high as the nation continues to feel the effects of the Great Resignation.

Wages, too, are rapidly increasing. Labor statistics show wages have shot up by 4.5% since December 2020, the largest spike in 40 years.

Starting salaries have grown a healthy 8% over the past five years, outpacing increases in college costs. Average starting salaries are likely to increase further as employers with a multitude of job openings compete for a limited number of candidates.

Graduates know the job market is hot, but they overestimate how hot it is. According to a report by education analysts at ThinkImpact, the average salary for a college graduate today is $55,260. Meanwhile, undergraduates now expect to earn $103,880 in their first job after college.

Those unrealistic expectations extend to mid-career earnings, too. Students today think they’ll be making just over $200,000 10 years after graduating — though the average mid-career salary is $132,497, according to Glassdoor.

A Hot Job Market Has Overheated Expectations

Part of the explanation could be the ease with which many college graduates are getting jobs. As they enter a job market with many openings, recruiters have been forced to compete for candidates, often sweetening offers with enhanced benefits or salary bumps.

Swipe up now to read the full post!