The Blubber

New college graduates are overestimating their starting salaries by $30,000, per CNBC.

Recent college graduates entering the job market with high expectations for their salaries might be in for a reality check. Despite a robust job market with low unemployment rates and increased confidence among job seekers, the anticipated earnings for new grads seem to be out of sync with reality.

A survey by Real Estate Witch in March revealed that today's undergraduates expect to earn approximately $84,855 one year after graduation. However, the average starting salary for recent graduates is around $56,000, creating a significant gap of almost $30,000.

The survey found that while about 97% of students would consider adjusting their salary expectations, they wouldn't settle for less than an average of $72,580 at their first job. This perception-reality gap continues to widen over time. Ten years into their careers, students anticipate earning over $204,560, significantly higher than the average midcareer salary of $98,647, as reported by Glassdoor.

On a positive note, employers are expected to hire about 4% more new college graduates from the class of 2023 compared to the class of 2022, according to the National Association of Colleges and Employers. However, the average starting salary for this year's graduates is projected to plateau, particularly in high-paying fields like engineering, math, or computer science.

As of April, new workers were paid 6.6% less than new hires the previous year, with more pronounced declines in finance, insurance, and other professional services, according to data from payroll provider Gusto. Despite the overall positive job market, salary expectations for new graduates may need to be adjusted to align with current market conditions.