Expectation Vs. Reality: The Average College Graduate Salary

What is the average college graduate starting salary these days?

I graduated college in the middle of the 2008 recession, when job prospects were basically nonexistent. Eventually, I landed a job working in higher education where the salaries were pre-determined, and the salary bands had strict levels.

Both of these experiences mean I didn’t really think about my salary and how it compared to other college graduates. However, I wish I had. In reality, I didn’t know what made a good salary or how to negotiate a great starting salary.

The other good news is being a recent grad today is a much more optimistic picture compared to when I graduated. CNBC reports:

“Employers plan to hire about 31% more new degree holders from this year’s graduating class than they hired from the Class of 2021, according to a report from the National Association of Colleges and Employers.”

Increased demand for college grads is great, and yet, I wonder if new grads are still in for a shock because their expectations don’t match the reality. 

Unlike my graduating class who had very low expectations, what are today’s grads’ expectations, and what exactly are the salary projections? Let’s dive in!

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Recent College Graduates’ Salary Expectations: Managing Expectations

So are the salary expectations of new grads based in reality or more wishful thinking?

CNBC recently wrote that the “current college students expect to earn twice the average starting salary — $103,880 — in their first job, according to a separate survey of college students pursuing a bachelor’s degree by Real Estate Witch in March. 

The actual starting salary is a far cry from that dream six-figure starting salary. According to Think Impact, the average college graduate starting salary is $55,620.

Undergraduate students across all majors and institutions overestimated their starting salaries by 88%, Real Estate Witch found.

Ten years into their careers, students anticipate making more than $200,000, well over the average mid-career salary of $132,497.”

So, what’s driving these unrealistic expectations? And what are the real numbers for the average college graduate salary?

Well, it’s not so simple, and Covid-19 has only complicated things.

Why Are Recent Graduates So Out of Touch With Starting Salaries?

It’s true that recent graduates are entering a job market that’s been rapidly recovering from the COVID-19 pandemic and many of the factors from the last two years are contributing to their wishing and unrealistic thinking.

Here are a few reasons that college graduates are so out of the loop when it comes to salary expectations:

1. The Job Market

Job openings are near record highs. Eager employers are increasing pay to attract talent, especially among ongoing labor shortages. Naturally, recent grads see this competitive labor market as good news for their job prospects.

2. Wages

We’ve also seen wages have the largest increase since 1983 by rising 4.5% since December 2020 and starting salaries increasing 8% in the last five years alone.

3. Inflation and The Cost of Living

The rise in Inflation and the cost of living are working in tandem to make it seem impossible for new grads to support themselves without a decent salary.

Along with their student loan debt payments, recent grads worry about making enough money to live comfortably. But even so, students’ expectations greatly exceed the salaries experts say are needed to live comfortably in even the most expensive areas.

4. Tales from Social Media

From TikTok to Instagram and Twitter, the strength of the economy has inspired lots of money advice. Specifically, the internet is awash in advice about asking for a raise as soon as an employee has leverage.

When the internet is sharing wild stories where young employees get 30% salary increases, it can drive unrealistic salary expectations. In the end, many entry-level employees find disappointment instead of a viral TikTok story. 

How Much Do College Graduates Typically Earn Straight Out of College?

Now that we’ve covered the unrealistic salary expectations of today’s grads, let’s talk about what is realistic. 

According to Zippia, the answer to this question depends on a number of criteria that also vary year to year.  

Here are some of those statistics about average starting salaries for recent college graduates:

• The average starting salary for the graduating class of 2020 is $55,200.
• Electrical engineering and computer science majors have the highest average starting salaries of all degree programs.
• The median starting salary for college graduates is $47,000.
• The average starting salary for college graduates increased by 2.5% from 2019 to 2020.
• A person with a bachelor’s degree earns 75% more than they would have with only a high school diploma.

College Majors With Highest Starting Salaries

According to Think Impact, an average bachelor’s degree holder earns an average annual salary of $64,896. 

However, a college graduate’s starting salary can be dependent on their degree and their major. For example, a college graduate who earned a Bachelor’s in computer science is likely to earn a higher starting salary than their roommate who earned a degree in fine arts. 

The following are some of the college majors that earn the highest starting salaries, according to US News + World Report. 

• Statisticians: $56,000
• Applied Mathematics: $71,000. 
• Industrial Engineering: $71,200
• Biomedical Engineering: $71,400
• Chemical Engineering: $75,200
• Aerospace Engineering: $75,300
• Electrical Engineering: $75,700
• Software Engineering: $75,900
• Computer Science: $77,300
• Computer Engineering: $80,300
• Pharmacists: $79,600 

College Majors With Lowest Starting Salaries

While the below majors earn some of the lowest starting salaries, you’ll see that many of these careers infuse the work with culture, education, healthcare, and enjoyment. Most of these positions are in education and the arts, which are arguably some of the most important jobs. 

Since salary and money aren’t everything, we absolutely think every bachelor’s degree holder should be proud to take their advanced degrees and do something potentially world-changing—even if the associated average college graduate salary doesn’t reflect the importance of the position.

• Metalsmithing: $40,300
• Animal Science: $40,500
• Mental Health/Psychology: $45,000
• Kinesiology: $45,600
• Rehabilitation Services: $46,400
• Medical Assisting: $44,800 (*While rehabilitation and medical assisting jobs have a low starting salary,  they’re also seriously in-demand jobs, with a predicted growth of over 1 million new jobs by 2030.)
• Graphic Design: $46,200
• Anthropology: $48,300
• Interior Design: $48,300
• Early Childhood Education: $48,400

This article was written by The Salary Project writer, Michele Lando.