What is happening to starting salaries in this country?!

[user8636283901]

My starting salary in 2009 - so mid-GFC - was £30,000.

That was 16 years ago! And in one of the worlds worst global recessions since the Great Depression of the '30s.

I was casually looking at starting salaries in similar fields to mine and it seems like they're barely moved, all the while the cost of living is miles ahead of where it was 16 years ago.

Why are wages so low in this country?! Why haven't they moved up?!

It’s a valid question. Salaries haven’t kept up with inflation at all. The stats of how much universal credit is paid to people in work is shocking.

The bottom line of business is supported by taxation.

This has massive repercussions, including poor management.

It’s not just starting salaries. I had a discussion today about a Managing Consultants role (IT Tech related) and the role seemed pretty good.

Asked the salary range and after wanting to know my current salary, which I wouldn’t give as it had nothing to do with the conversation or the role, he finally said it’s £45k to £55k. Not a bloody chance in hell.

My graduate starting salary at KPMG in 1992 was £9.5k, which is apparently @£21.6k today. My DN has been offered £24k starting salary for an apprenticeship this year. So that appears to have kept up.

It is appalling wage stagnation. However if you compare those at the top and their salaries 20 years ago, I think you will see why the majority are struggling!

I was similar, 1995 started on a salary of £11,000 after graduation. However housing costs, food, going out etc was much cheaper so we were better off than graduates now. Also no student loans.

Completely agree.

It is a big issue.

The salaries in my current sector at most levels, apart from Directors and CEO, are the same as they were when I started over 20 years ago!

With the added bonus of employers now also coming up with ridiculous, endless job descriptions that require you to do the job of 4 people with different skills...

Yup - salaries in this country are shocking! Definitely not kept up with house prices, rent or inflation.

It's not just starting salaries. I'm a contractor but on the look out for something permanent. I'm paid very well as a contractor but salaries for jobs that are similar to what I do not great. I'm not sure if it's me that's wildly out of touch or the employers.

Businesses will get away with paying the least amount they can.
minimum wage has gone up and percentage wages used to match so the gap between the lower rung and more skilled jobs was bigger. Now there isn’t much difference at all.

When I finished work to have my daughter in 2008 I was on 36k as a pr account manager. In the time since I’ve gone self employed, work part time hours and make about £70k a year. However whenever I’m tempted to just look at current salaries for jobs that are way more demanding day to day than what I do now, I’m shocked. There are people wanting account directors to work for £40k or under in London. The charity sector seems to be the worst. It’s not my area but I did do some freelance for a well known charity in the midst of covid and for the pressure and work expectations of the comms people internally, I couldn’t believe how low the salaries were.

Yep, corporate welfare, our taxes are boosting share holder profits by topping up peoples wages.

I started as a trainee accountant in 1997 on £7,500 p.a.

According to an inflation calculator that's now worth £14,739.

A realistic starting wage in my company for a school leaver like I was would be NMW, which is £23,810, so it's actually significantly more.

Unfortunately, back in 1997 I could buy a 2 bedroomed flat for £69,000 which is now equivalent to £135,601. That flat is now actually worth around £260,000.

So while my salary equivalent is 161% higher than the inflation amount, the property is 192% higher, so less affordable.

It's that gap widening that causes the biggest problem IMO.

My graduate starting salary with a bank was £10,500 in 1989 but I think you were probably quite fortunate if you didn’t have quite a large student overdraft after university at that time. I know that I did as did most of my friends. After rent in a shared house, paying off overdraft, public transport, having to buy suitable office clothes etc there wasn’t anything/much left. I wasn’t allowed to take out a loan for a car until I’d paid off my overdraft which took about 2 years. You were only given a certain amount of time to pay off the student overdraft before they started applying the normal ruinous overdraft interest rates.

£21,600 is barely minimum wage, let alone a graduate salary.

My starting salary at that time was £18k. That was pretty standard for accountancy 🤷‍♀️

My starting salary in media was £24k in 2000.
25 years ago and I think that's an average starting salary now.

Similar figures in the insurance company I work for. New entrant salaries seem to have kept up because they need to attract people in, but once you get higher up you have to work for promotions or sideways moves to keep up.

Wages have stagnated for years. A lot was a result of QE & austerity.

Plus housing, general living costs were much cheaper in relation to salaries in the past. And people wonder why we have a productivity issue.

Completely agree. I am job hunting at the moment and some jobs "essential and desirable criteria" are 2 pages long, for not much more than the minimum wage. It's an eye opener!

Jobs that ask for university level qualifications are really poor remuneration. My job was £45k 18 years ago (I've since been self-employed) and I am truly shocked at the pittance being offered for jobs that match my qualifications and skill set.

And yes to wanting some experience & responsibility for a low salary.

so much not some!

My first take home pay as a newly qualified nurse in 1998 was £990 I was well chuffed!

I've just calculated my starting salary of £6k in 1984 which is £24,645.99 in today's money which is actually minimum wage. Your expectation depends on your qualifications and experience. If you're fresh out of school/college £25 is a very reasonable wage. Even if you have a degree, if it's not relevant to the job you're applying for it means diddly squat.