Yahoo Finance 20 Countries With the Highest Starting Salaries for Graduates
In this article, we will be covering the 20 countries with the highest starting salaries for graduates. This article will cover recent employment and labor market trends and look at highly rewarding companies that recruit fresh graduates. If you want to skip our detailed analysis, go directly to the 5 Countries with the Highest Starting Salaries for Graduates.
The Global Labor Market: An Overview
The COVID-19 pandemic not only brought distress to the physical health of the global population, but it left the world with a financial burden to recover from. Labor shortages, rising global inflation rates and unemployment rates, productivity constraints, and declining quality of work are some of the pandemic-induced crises. The International Labor Organization suggests that the global employment rate will only increase by 1% in 2023. The report further states that young adults and fresh graduates are increasingly finding it difficult to settle for a job. Over 1 of every 5 young adults are neither employed nor in education.
Experts also raise eyebrows about the declining productivity and quality of work. According to the World Economic Forum, as of 2022, three in ten manufacturing and service companies in Europe reported declining productivity. The United States reported 70% of the job openings as unfilled in retail and wholesale, 55% in manufacturing, and 45% in the leisure and hospitality industry.
While COVID-19 shook global economic roots, the pandemic fueled the otherwise steadily growing technology industry. Big data analytics and artificial intelligence have been one of the fastest-growing industries globally.
According to a report by Fortune Business Insights, the global big data analytics industry was valued at $271.83 billion in 2022. The global big data analytics industry is expected to reach a valuation of $745.15 billion by 2030 at a compound annual growth rate (CAGR) of 13.5%. The big data analytics industry is dominated by North American companies, followed by countries in the Asia Pacific notably China, India, South Korea, Singapore, and Japan. Major players in the industry are International Business Machines Corporation (NYSE:IBM), SAP SE (NYSE:SAP), and Microsoft Corporation (NASDAQ:MSFT).
According to a report by Fortune Business Insights, the Global artificial intelligence (AI) industry was valued at $428 billion in 2022. The Global Artificial Intelligence (AI) industry is expected to grow to a valuation of $2.025 trillion by 2030, at a compound annual growth rate (CAGR) of 21.6%.
As of November 2022, ChatGPT, the popular AI software gained over a million users in just five days after its official launch. Moreover, as of February 2023, Baidu, Inc. (NASDAQ:BIDU), a Chinese multinational technology company, launched its official AI chatbot. Additionally, big data giants like International Business Machines Corporation (NYSE:IBM) acquired Dialexa, a product engineering services firm, in September 2022. The acquiring company, International Business Machines Corporation (NYSE:IBM), intended to integrate the use of technology to automate operations and enhance customer service. Such showcases the need to integrate technology and automate business solutions to compete globally.
Artificial intelligence is used mostly within retail, IT, telecom, healthcare, advertising and media, manufacturing, and the automotive industry. North America dominates the artificial intelligence industry. As per the report, almost 80% of businesses based in the United States were optimistic and enthusiastic about the integration of AI in their businesses.
While North America dominated the market share of the global AI industry in 2022, the Asia Pacific region is forecasted to grow at the fastest rate over the coming years, followed by emerging markets including Europe, Latin America, the Middle East, and Africa.
Is AI Expected to Take Over the Labor Market?
According to the World Economic Forum, 75% of companies are leaping through technological advancements. Big data, cloud computing, and artificial intelligence are notable technologies altering the economic landscape by enabling digital trade and e-commerce. Within the next five years, 86% of companies worldwide are expected to integrate digital platforms and apps into their business operations. Additionally, 74.9% of companies are expected to adapt to artificial intelligence by 2027.
The incidence of artificial intelligence alters the labor market landscape entirely. Artificial intelligence is changing how jobs are being done, and how people create content for their businesses and sell their commodities. According to the World Economic Forum report we cited above, thanks to generative AI, 19% of the workforce could have 50% of their workload automated. Moreover, 34% of human tasks in organizations are already being performed by machines or robots.
One can argue that the existence of AI may cost millions of people their jobs and household income. However, the key takeaway with AI being able to perform tasks could be the ability to set up businesses from the comfort of your homes without having to employ an army of workers. The real question stands, is AI stealing jobs or is it changing the economic landscape of the world for good?
Notable Companies Popular Amongst Graduates
Landing a well-paying job as a fresh graduate is a daunting experience. However, some companies have student and fresh graduate-friendly policies. Some of these companies are Alphabet Inc. (NASDAQ:GOOG), Apple Inc. (NASDAQ:AAPL), and Oracle Corporation (NYSE:ORCL).
Alphabet Inc. (NASDAQ:GOOG), popularly known as Google, is one of the leading attractions for the workforce. A friendly work environment coupled with impressive employee benefits, tends to influence youngsters and Gen-Z to work at companies like Alphabet Inc. (NASDAQ:GOOG). The company owns a range of products to its name, including cloud-based software, google workspace, and Google-based tools. The company currently boasts a market cap of $1.679 trillion as of August 1, 2023.
A report by Business Today stated that an Indian non-engineering graduate recently bagged a job at Alphabet Inc. (NASDAQ:GOOG) with a salary package of $60753/annum. The news comes as a surprise to the incoming labor force. While it is true that big names like Alphabet Inc. (NASDAQ:GOOG) hire fresh graduates, there has been little information on the internet about the company hiring non-engineering students for a level 1 job at the company. Such explains the attraction towards working at Alphabet Inc. (NASDAQ:GOOG) by students from all industries.
Apple Inc. (NASDAQ:AAPL) is another huge name in the global industry. This company is open to hiring fresh graduates and runs a variety of internship and graduate programs for students trying to launch their careers in the best way possible. As of August 1, 2023, the company boasted a market cap of $3.088 trillion. The company offers a range of full-time and part-time positions to fresh grads with little to no technical experience required.
Oracle Corporation (NYSE:ORCL), is an information technology enterprise based in the United States. As of August 1, 2023, the company boasted a market cap of $319.523 billion. The company is a leading name in the tech industry, offering a range of products including cloud-based enterprise resource planning services (ERP), cloud-based supply chain management services, and cloud-based customer management services. Oracle is one of the few companies that take the lead in hiring fresh graduates with their extensive graduate and internship programs. They offer programs to students with different academic backgrounds including engineering, software development, sales, marketing, consulting, and management.
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Our methodology
We shortlisted the 20 countries with the highest starting salaries using data from OECD, Indeed, and Glassdoor. Our process commenced with finding the global average annual salaries from the Organization for Economic Co-operation and Development (OECD). Using the data we developed a hypothesis stating that the rankings for the global annual average salaries are proportionate to the rankings for the highest starting salaries. Following our hypothesis, the preliminary data helped us shortlist the top 50 countries.
Next, we moved toward finding the starting salaries for entry-level jobs for the shortlisted 50 countries. We then sorted our data in ascending order to compile the 20 countries with the highest starting salaries for graduates in the list below. All the salaries mentioned below are on a per/annum basis.
20 Countries With the Highest Starting Salaries for Graduates
20. Norway
Starting Salary for Entry-Level Jobs: $15,155
Norway is amongst the top 20 countries with the highest starting salaries for graduates. Norway is an attractive choice for students to study and work especially, because of its high salaries, relatively lower cost of living, and acclaimed work-life balance. Currently, the nursing and healthcare industry in Norway offers the highest number of jobs to its domestic and international prospective applicants. As of January 1, 2023, the employment rate in Norway is 69.7%.
Some of the companies making leaps in technological integration for businesses are Alphabet Inc. (NASDAQ:GOOG), Apple Inc. (NASDAQ:AAPL), and Oracle Corporation (NYSE:ORCL).
19. Japan
Starting Salary for Entry-Level Jobs: $17,672
Japan is amongst the top 20 countries offering high starting salaries for graduates. The Japanese market heavily invests in technology and therefore the most in-demand job as of 2023 is the position of a software engineer. These engineers are needed to keep up with global technological trends and therefore highly paid. As of January 1, 2023, the employment rate in Japan is 60.7%. While the employment rate is reasonable, there are rising concerns over labor shortages due to a lack of working women.
18. Netherlands
Starting Salary for Entry-Level Jobs: $24,609
With an average starting salary of $24609 per annum for entry-level jobs, the Netherlands is amongst the top 20 countries offering high starting salaries to graduates. As of 2023, jobs in the green sector, retail sector, construction sector, and IT sector are in high demand. According to the European Commission, the health and welfare sector is the largest sector in the Netherlands, offering 1.5 million jobs, followed by the retail and manufacturing industry accounting for 10% of the total jobs.
17. Singapore
Starting Salary for Entry-Level Jobs: $27,040
Singapore is a highly attractive spot for its high salaries at an entry-level. While the cost of living is significantly higher compared to other countries, the general population still enjoys a luxurious standard of living. The average cost of living for a single person without rent is $1,165.7 per month. As of August 2023, the average consumer prices including rent and rent prices in Singapore are reported to be 7.8% and 20.7% higher than in Boston, United States, respectively. Popular jobs with a high number of reported vacancies available include customer service representatives, e-commerce specialists, teachers, and sales executives.
16. Ireland
Starting Salary for Entry-Level Jobs: $27,599
Like most countries, Ireland also invests heavily in the technology and IT industry. Henceforth, the highly demanded jobs also lie within the technological sector. Other popular and in-demand jobs lie within the accountancy, construction, engineering, human resources industry, and healthcare industry. As of April 2023, the reported employment rate in Ireland increased to 73.6% from 73.2% in 2022.
15. Spain
Starting Salary for Entry-Level Jobs: $29,782
Spain is not only a popular tourist attraction, but it is also a top choice for the global workforce. The company boasts a starting salary of $29782 per annum for entry-level jobs. However, to be able to work in Spain, one needs to be heavily skilled in their occupation. Some of the in-demand skills revolve around jobs in the sales, engineering, IT, and marketing sector. However, as of March 2o23, the unemployment rate in Spain rose to 13.3% with average monthly earnings at $2351.
14. Belgium
Starting Salary for Entry-Level Jobs: $30,809
Belgium is a popular choice not only for the domestic labor market but also for the global labor market. The company has one of the most expat-friendly regulations. The country has advertised a range of skills they require in the country, these job openings are available to domestic and international workers alike. Most of the jobs are in the construction and IT sector.
13. Canada
Starting Salary for Entry-Level Jobs: $31,462
Canada has one of the highest immigration rates in the world, primarily because of their extremely friendly expat regulations. Canada offers a range of immigration plans for people across the globe. In-demand jobs lie in the following industries: healthcare, management and technology, engineering and development, and software. Canada boasts a high starting salary for fresh graduates, primarily because of the highly educated workforce. According to a report, 58% of Canadians have a post-secondary education.
12. New Zealand
Starting Salary for Entry-Level Jobs: $35,239
New Zealand is home to 5.1 million people (2021), therefore, the country offers a long list of vacancies for people across the globe to choose from. Popular skills and jobs in high demand include customer service jobs, project management jobs, nursing jobs, and creative design jobs. As of March 2023, the employment rate in New Zealand stood at 69.5%.
11. Italy
Starting Salary for Entry-Level Jobs: $35,239
Italy is amongst the economic powers in Europe, in terms of standard of living and employment opportunities. The country is amongst the top 20 countries with the highest starting salaries for graduates. Qualified workers with business, economics, statistics, IT, medicine, and engineering degrees are in high demand. Moreover, the country is also in need of manual workers, drivers, and waiters. As of June 2023, the employment rate in Italy was reported at 61.5%.
10. United Arab Emirates
Starting Salary for Entry-Level Jobs: $37,570
People residing in the United Arab Emirates are known to have very luxurious lifestyles. The starting salary for entry-level jobs can testify to the fact that the UAE enjoys a particularly high standard of living. In-demand jobs in UAE relate to the healthcare industry, the data science industry, the digital marketing industry, and the sales industry.
9. United States
Starting Salary for Entry-Level Jobs: $37,670
The United States, particularly North America, is home to one of the largest information technology industries. With the startup culture on the rise, more and more software is being developed and employed, and integrated by companies across the country. Therefore, the most popular jobs involve employees skilled in cloud computing, Artificial intelligence, and sales leadership.
8. United Kingdom
Starting Salary for Entry-Level Jobs: $38,690
Skills shortages have deeply impacted the United Kingdom as well. The United Kingdom ranks eighth amongst the top 20 countries with the highest starting salaries for graduates. Popular in-demand job roles include programmers, software developers, cyber security specialists, health care service providers, and architects.
7. Australia
Starting Salary for Entry-Level Jobs: $41,832
With the booming IT industry, jobs for software and programmers are in high demand. Moreover, with the aging population, there are an immense amount of vacancies for aged and disabled carers and registered nurses.
6. Germany
Starting Salary for Entry-Level Jobs: $43,944
Germany is a technology hub in Europe, hence the demand for software developers and IT professionals. Other in-demand jobs include healthcare professionals, marketing professionals, and financial professionals. The employment rate in Germany decreased to 77.2% in the first quarter of 2023, from 77.3% as of 2022.
In addition to Alphabet Inc. (NASDAQ:GOOG), Apple Inc. (NASDAQ:AAPL) and Oracle Corporation (NYSE:ORCL) are also among the biggest companies that don't shy away from recruiting fresh graduates.
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Disclosure: None. 20 Countries With the Highest Starting Salaries for Graduates is originally published on Insider Monkey.