This summer, around 4 million students graduated from college with either a bachelor’s, master’s, or PhD. For those graduates about to enter the job market, things are looking good. American graduates are some of the best-paid, and graduate job listings are on the up.
Is this an experience that US graduates share with their contemporaries globally? We look at the global graduate job market, uncovering some of the winners, and some of the losers.
USA: Where we are
Graduate vacancies, August 2023: 491,354
Average grad salary: $39,833
The US graduate job market has experienced a +29.1% year-on-year growth in 2023. Despite ongoing global challenges, inflation in the US has remained more under control than in the UK and Europe.
Graduates are benefiting from a shortage of skilled workers, a situation exacerbated by the retirement of baby boomers and shifting worker demands. Although there are some signs that the market is cooling after the “Great Resignation”, there are still plenty of graduate opportunities.
Of the over 4 million students graduating college each year in the USA, there are graduate roles for 12% of them. Substantially higher figures than all other graduate markets except for Singapore.
United Kingdom: A slower market compared to 2022
UK, Graduate vacancies, August 2023: 24,835
Average grad salary: £25,000
The United Kingdom has witnessed a noticeable slowdown in the job market.
According to a recent Adzuna UK Job Market Report, vacancies in the UK have decreased by -8% in August 2023 compared to the previous year.
Graduates are bearing the brunt of these hiring slowdowns, with a sharp -30.9% decrease in graduate jobs over the last twelve months. However, the year-on-year decline in overall hiring is slowly shrinking, so there may be signs things are getting better.
Europe: A similarly struggling market
France, Graduate vacancies, August 2023: 27,548
France, Average grad salary: €32,619
The situation is mirrored across Europe, with countries like Germany, France, and Poland experiencing similar declines in graduate vacancies, with drops ranging from -24% to -26%.
Inflation and the conflict in Ukraine are having a big impact on the jobs market, especially for those with less work experience.
Germany, Graduate vacancies, August 2023: 23,467
Germany, Average grad salary: €27,402
Even Germany, a usually resilient European economy has been stagnant since earlier this year, and in August four of six key German states saw inflation rising.
Singapore: A thriving market
Graduate vacancies, August 2023: 25,806
Graduate opportunities in Singapore have more than doubled in the last twelve months. It’s a country that continues to thrive, especially in tech, law, and finance. The country has recently benefited from the relocation of major multinational corporations’ Asia-Pacific headquarters to Singapore due to many companies pulling out of Hong Kong. This influx of global businesses, such as FedEx, HSBC, Dyson, and VF Corporation, has created more opportunities for graduates in the region.
Singapore has a relatively small student population with just six universities. Each year, just 10,000 students graduate from a Singaporean University with a similar portion of residents choosing to study overseas in the US, UK, and Australia.
With over 25,000 graduate roles available, there are more roles currently than the annual student graduation numbers, meaning not only is Singapore a fantastic graduate market to be a part of but it is also a country that relies heavily on graduates from elsewhere.
India and South Africa: Emerging graduate markets
India, Graduate vacancies, August 2023: 38,044
India, Average grad salary: ₹291,667
India saw an +85.5% increase in graduate roles over the last twelve months. With more access to higher education and a focus on in-demand STEM skills in technology and AI, the skills Indian graduates offer are highly sought after by global companies.
India is also a hub for AI, ranking behind only the US and France in terms of the number of AI job opportunities advertised earlier this summer.
However, it is estimated that between 6 and 10 million people in India graduate each year, many of whom are entering the job market. Even with substantial job growth, less than 1% of students are entering graduate roles.
South Africa, Graduate vacancies, August 2023: 14,936
South Africa, Average grad salary: R224,333
South Africa saw a +41.5% increase in graduate jobs, over 10% more than the growth here in the US. However, based on annual graduation figures only 4.5% of graduates are finding graduate jobs.
Canada and Australia: Some year-on-year stability
Australia, Graduate vacancies, August 2023: 8,589
Canada and Australia have experienced slight declines in graduate jobs, -14.4 and -1.7% respectively. With neither market particularly large, these declines account for a very small decrease in numbers.
Like the UK and Europe, Australia has experienced numerous interest rate rises. However, the jobs market has remained resilient with near half-century lows in unemployment and the jobs market has remained buoyant.
The very slight decline in graduate roles could partly be down to an ongoing mismatch. Students are encouraged to take STEM subjects, but on graduation there simply isn’t as much demand as the Australian government was anticipating. A relatively vocationally-minded recruitment market means these graduates are hard to place.
Currently, advertised graduate roles account for just 2% of the graduating class, although of course, the Australian academic year ends in December rather than June or July.
Canada, Graduate vacancies, August 2023: 17,453
Canada, Average grad salary: $42,240
Our northern neighbor Canada has been less resilient than the US during this global upheaval. The job market is slowing ever so slightly, with a lot of Canadians choosing to stay in their current positions. Interest rate hikes are also a contributing factor, leading to an overall decline in new jobs that is impacting graduates.
So what can US students expect to earn on graduation?
American graduates have struck it lucky earning $39,833 on average. This is higher than most comparable Western countries. Based on current conversion rates, France and Canada are the closest with graduates earning just shy of $35,000 in France and close to $31,500 in Canada. In Germany and the UK, graduates can expect to earn nearly $10,000 less than their American contemporaries, while graduates in Poland, South Africa, and India will earn substantially less.
Taking a step back to look at the broader global picture when it comes to graduate job market opportunities and remuneration shows that the US is fairing remarkably well. While some regions face challenging conditions with a decline in graduate vacancies, others offer promising opportunities.
| Country | Advertised grad vacancies, August 2022 | Advertised grad vacancies, August 2023 | YoY change, August 2023 |
|---|---|---|---|
| Singapore | 12,162 | 25,806 | 112.2% |
| India | 20,513 | 38,044 | 85.5% |
| South Africa | 10,558 | 14,936 | 41.5% |
| US | 380,712 | 491,354 | 29.1% |
| Australia | 8,739 | 8,589 | -1.7% |
| Canada | 20,393 | 17,453 | -14.4% |
| Germany | 30,897 | 23,467 | -24.0% |
| France | 36,388 | 27,548 | -24.3% |
| Poland | 4,525 | 3,337 | -26.3% |
| UK | 35,929 | 24,835 | -30.9% |
The US, with its resilience to inflationary pressures and ongoing demand for skilled workers, stands out as a relatively stable environment for recent graduates.
Read more: The outlook of AI on businesses and hiring