College students today obviously don’t do their homework. 80% say they are aware of the typical salary range for professionals in their field, but 78% overestimate how much they can earn in their first entry-level job.
Gen Z undergraduates expect to earn nearly $85,000 within the first year of graduation, and flatly refuse to work for less than $72,000, according to a new survey. real estate witch.
But the average starting salary for college graduates is just $55,911, a disappointment for an entire generation of job seekers.
Student expectations may seem silly to experienced employees, but they are actually more realistic than student expectations. last year. In 2022, a college graduate is expected to earn her whopping $103,880 in her first job, almost double the actual average starting salary.
Expected salaries are about $19,000 lower this year than last year, as uncertain economic conditions tend to lower student expectations. But $85,000 is still unreasonable for most students entering the workforce.
College students prepare for disappointment
Gen Z’s optimism isn’t entirely wrong. Wages are expected to rise 4.6% in 2023 as employers try to attract top talent. But at a time when many businesses are working hard to prepare for a potential downturn, Zomer’s expectations are far above reality.
Unrealistic expectations are projected far into the future. Ten years from now, his college income is expected to be close to $205,000. The actual mid-career salary is less than half of the average $98,647.
Zoomers are likely to have less money than expected as they enter middle age, and like millennials before them, they may have to delay big life milestones like marriage, having children, and getting married. Buy a house.
Some majors are more impractical than others
Students of certain majors may be subject to undue expectations.
Business students have the most unrealistic expectations. They expect him to make more than $98,000 a year after college, with an average starting salary of about $50,000. By mid-career, they expect a salary of $223,679, which is more than double the actual average of $86,600.
Computer science majors have the most realistic expectations, with starting salary expectations just 12% higher than the actual average.
Inflation is pushing prices higher – and expectations
Some of the misplaced expectations are attributed to young people’s optimism and inexperience, but may actually be rational responses to economic conditions.
“At this point in the economic cycle, workers are focusing on high profits in companies that are losing momentum due to inflation,” said Thomas Kochan, a professor of industrial relations, employment and labor at the University of Massachusetts. So expectations are high,” he said. Technology Sloan Graduate School of Management. “This will probably affect new hires as well.
“Meanwhile, employers are looking at slowing demand and a possible recession and want to hold back pay increases. This mismatch of expectations is typical at this stage of the inflation, earnings and product market cycle is.”
Students similarly do not understand the realities of job hunting
Despite widespread economic concerns, 75% of students still think it’s a good time to find a job. Gen Z is fortunate to graduate from a strong labor market, which can lead to more unrealistic expectations.
Nearly two out of three college students believe they will not need entry-level jobs in the future because employers see their potential and immediately offer them advanced-level positions.
If that didn’t happen, more than 3 out of 4 students would expect a promotion within the first year of joining the company. That’s about two years earlier than the average employee.
Finally, 92% of students believe they can find a job within their major, but research shows that only 46% were able to find a job in their chosen field.
welcome to rude adults
It can lead to disappointment when graduates do not receive their expected starting salary. Many students already have regrets about the cost of attending college before they even graduate.
About 80% of current undergraduates feel obligated to go to college, but 40% regret their decision. Cost is a big factor, with nearly 9 in 10 students graduating with student loans.
College debt is a particular concern when students perceive that starting salaries are likely to be lower than expected. Doing the math, 33% believe low salaries will keep them from paying their student loans, and 34% think they won’t be able to afford basic expenses.
Additionally, 37% expect to need a side job, 27% believe they will need a credit card to support themselves, and 19% believe they will have to move back to their parents.
It’s normal for young college graduates to feel some degree of disillusionment, as youthful optimism clashes with the economic realities of adulthood. But the extent of the discrepancy between expected and actual starting salaries suggests that turmoil may lie ahead as Gen Z joins the workforce.
This article was created by real estate witch Syndicated by Wealth of Geeks.
