October 4, 2007
A basic rule of economics (and common sense) suggests that salary incentives can help to increase the supply of in-demand workers and balance out a lopsided supply/demand ratio. But that does not appear to be working for many fields, according to salary data gathered by the National Association of Colleges and Employers (NACE).
“Our research shows that, in fact, some short-supply disciplines are actually losing the interest of college students, despite substantial starting salaries. Conversely, some lower paying disciplines are attracting more and more students,” says Marilyn Mackes, NACE executive director.
For example, NACE’s Fall 2007 Salary Survey report shows computer science graduates earning an average annual starting salary offer of $51,992. However, statistics from the National Center for Education Statistics (NCES) show that computer science, now accounting for just 3.8 percent of bachelor’s degrees conferred, is losing ground, with an annual growth rate of -0.6 percent.
The news is worse for the engineering disciplines. While new engineering graduates earned an average offer of $53,710 according to NACE’s report, their annual growth rate is -2.2 percent. (See Annual Salary Offer and Growth Rate of Discipline as a Percent of Total Graduates)
Which fields are attracting a greater share of students? Visual and performing arts tops the list, with an annual growth rate of 2.6 percent, followed by psychology, despite starting salary offers that are on the low end of the spectrum. NACE’s Salary Survey shows visual and performing arts majors averaged $30,174, while psychology graduates earned an average starting salary of $31,857.
What does this mean for employers?
“It’s likely employers will continue to use salary to attract the existing candidates available to them, and to look for additional incentives beyond salary to differentiate themselves from their competition,” says Mackes. “A bigger issue for employers is how to make the fields themselves more appealing so that more students will choose to study these disciplines. Clearly, salary alone is not drawing students to these fields.”
Annual Salary Offer and Growth Rate of Discipline as a Percent of Total Graduates
Discipline
|
Annual Growth Rate*
|
2007 Average Salary Offer**
|
| Visual & Performing Arts |
2.6% |
$30,174 |
| Psychology |
2.3% |
$31,857 |
| Communications |
1.0% |
$32,845 |
| History & Social Science |
0.8% |
$33,763 |
| Biological Sciences |
0.8% |
$33,944 |
| English |
0.5% |
$31,924 |
| Business |
-0.5% |
$44,287 |
| Computer Science |
-0.6% |
$51,992 |
| Health Sciences |
-0.8% |
$42,871 |
| Education |
-0.9% |
$33,679 |
| Engineering |
-2.2% |
$53,710 |
All data are for bachelor’s degree graduates.
* Annual rate of change in the proportion of total graduates represented by discipline between 1985-86 and 2004-05. Source: National Center for Education Statistics, Digest of Education Statistics 2006, Table 254.
** Source: National Association of Colleges and Employers, Fall 2007 Salary Survey.
About Salary Survey: Salary Survey is a quarterly report of starting salary offers to new college graduates in 70 disciplines at the bachelor's degree level. The survey compiles data from college and university career services offices nationwide. Salary Survey is issued in Winter, Spring, Summer, and Fall, with the Fall issue serving as the year-end report. (Salaries reported in this press release reflect offers to bachelor’s degree candidates.)
About NACE: Since 1956, the National Association of Colleges and Employers (NACE) has been the leading source of information about the college job market. NACE maintains a virtual press room for the media. NACE is headquartered in Bethlehem, Pennsylvania.
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