Graduate salary rise hits 20-year high as competition increases

Inflation and high employment pushing firms to improve salaries for university leavers

Graduate salaries have risen at their fastest level for 20 years as employers fight to stay competitive amid a shortage of applicants.

A survey from the Institute of Student Employers of 104 firms revealed that pay for graduates has risen by an average of 7 per cent this year, while some employers have pushed salaries up by as much as 20 per cent in a bid to “remain competitive in a tight labour market and to meet rising inflation and cost of living”.