UK college graduates starting salaries down 13 percent since last year

Another consequence of zero interest rate and quantitative easing policies has been a reduction in the average starting salaries for recent college graduates.

According to a Pimco Viewpoint, a reason their salaries are down is that older workers are staying in the workforce longer in order to offset the decline in earnings on their retirement savings.  Potential retirees see the need to work longer to ensure they have adequate savings to retire on.

The result of postponing retirement is that companies need to hire fewer new employees.

As reported by the Telegraph,

Graduates who started new jobs this summer received an average salary of £22,800 - a “marked” 13.2pc less than last year, an analysis of graduate salaries at more than 60 recruiters found.