There is a wealth of discussion out there regarding graduates and millennials…and their salaries. Why has this topic become so newsworthy and what is it telling us?
A quick skim of the headlines might present a negative picture. However, read on for some useful links and the positives surrounding these discussions…
Grads fear they will lose jobs to unpaid interns
Source: People Management
More than 1/4 of graduates worry that unpaid interns will secure the best job opportunities. It is also popularly believed that internships offer a great route to that first graduate level role (55% of respondents).
Worryingly, some organisations may still be dangling the carrot of a ‘possible job’ in order to attract unpaid interns. Such strategies can also prove a major barrier to anyone who cannot afford to work for free. Which applies to many of us! Thought unpaid internships weren’t legal? Here are the current rights (via gov.uk).
Plenty of opportunities, yet frozen salaries
Source: HR News
Graduate demand is still high – no doubt offering a huge relief to this year’s university leavers. However, starting salaries have changed little over the past ten years.
Although this year did feature an increase in the threshold for paying back a student loan. Meaning anyone earning less than £24,000 per annum will not start paying back their loan as yet (providing as they entered university after September 2012).
Concerned that not having a degree will affect your income? These are the best-paying degree-free jobs.
Millennials earn ‘significantly less’ than they thought they would
The Office of National Statistics has revealed some fascinating findings. Back in 2011-2012, a number of 16 to 21-year-olds were invited to share their ‘salary and career aspirations’. The difference between expectation and reality has now been reviewed…
- 1/2 of the youngest respondents (then aged 16-17) predicted that they would earn £35,000 by the time they turned 30 as graduates, or £25,000 per annum as non-graduates. Yet the average 30-year-old currently earns £23,700.
- Only 7% believed they would they would earn under £20,000. 37% of 22 to 29-year-olds do, however, earn under this threshold.
- Whereas 5% thought they would earn above £80,000, only 2% of respondents have done so.
For some realistic earning insights: take a good look at the latest jobs listings. Be sure to research both your industry and target locations. You can also keep on top of the latest salary news – including the items recently shared here!
Almost 1/4 of millennials don’t think they’ll be able to afford to retire
Source: HR News
Some millennial workers are concerned that they may never be able to retire, as they cannot afford to ‘invest in their pensions’. Additionally, 1/5 don’t believe a state pension will exist by this time.
1 in 3 workers from this age group currently resides at home with their parents due to their financial constraints.
Younger employees are facing ‘spiralling debts’
Source: HR Magazine
Financial stress is rising among younger workers:
- 70% of under 34-year-olds have to borrow money on a regular basis just to cover daily living expenses and/or settle their monthly bills.
- 20% of 25 to 34-year-olds say they’re ‘only just coping’.
- 33% of 25 to 34-year-olds are forced to use credit cards to cover their general costs, while average unsecured debts have reached £14,794.35 for people aged 25 to 44.
- 45% of under 34-year-olds are suffering performance issues as a result of their financial anxieties, and 40% are experiencing problems with their workplace relationships.
What do these millennial salary news items tell us?
While the news may look negative at first glance, the insights can be used positively – for graduates, millennials, and their employers.
Clearly, financial anxieties greatly affect a large number of younger workers. The more that these issues are discussed, the better we’re able to address them. We instantly think back to our recent exploration of ‘Gen Z’ news, in which employers were advised to incorporate financial schemes into their staff attraction and retention tools.
Alongside this, have another look at the stats above. Many workers from these age groups are not feeling the same level of anxiety. 80% of employees are more than ‘only just coping’, while 3/4 of grads don’t fear that they’ll miss out on job opportunities due to unpaid interns.
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