What Does the Salary Landscape Look LIke for College Graduates?

College graduates go to school on one basic premise: earning a degree earns more money over a lifetime. A college education leads to better preparation for real-world careers, higher salary levels and a grounded commitment to seeing a project through to the end. As thousands of young adults enter the labor market in 2016, what can they expect for base pay at an entry-level position?

Career Builder released its College Hiring Outlook survey. One portion of the research asked employers what salaries they plan to pay brand-new college graduates. The basic answer is that it depends on the type of job someone is expected to do. Highly technical degrees lead to better pay from the get-go.

Statistics

As many as 25 percent of employers said they expect to pay college graduates less than $30,000 per year starting in 2016. A full 28 percent plan to pay between $30,000 and $40,000, while another 20 percent should offer salaries between $40,000 and $50,000 per year. Finally, according to only 27 percent of surveyed employers, new graduates can expect to earn more than $50,000 if hired at their companies.

That adds up to nearly three-fourths of college graduates who can expect to make less than $50,000 per year. That makes sense since most grads are untested in the field and lack job experience. Some young adults aren't even lucky enough to get a job — the unemployment rate for 18- to 29-year-olds is 14 percent, one of the highest rates in the United States for a particular demographic. The need to make a lot of money fresh out of college comes from one main idea.

College Costs

The $50,000 threshold in the survey comes from the expectations of college graduates as they enter the workforce. New grads want to start making money immediately because the average cost of one year of college is between $24,000 and $32,000. Many of these expenses are covered by student loans, but grads need to start paying on those as soon as they are out of school. Over the span of four years, the total costs add up to $100,000 or more. Luckily, the right degrees can lead to an immediate pay boost after graduation.

Degrees and What They Pay

Engineering and IT fields have starting salary levels of $65,000 per year or more for new grads. Accountants start at $55,000 plus, and health care professionals can make more than $50,000 in their first year. Marketing, business, liberal arts and human resources degrees all lead to starting salaries of $40,000 or less, on average.

The news isn't all bad for college graduates, as the same lessons learned in college apply to the real world. If a person works hard and makes the right connections, the rewards fall into place. College students who think about the future and plan ahead have a chance to start making money shortly after graduation.

Photo courtesy of Will Folsom at Flickr.com