Sticky pay for investment banking graduates

The latest survey by the Association of Graduate Recruiters (AGR) reveals that investment banks are planning to hold graduate starting salaries stable this year, at an average of 35,000. It says this is despite the fact that banks haven't raised graduate starting salaries since 2003.

Recruiters in investment banks say the amount of time that has lapsed since salaries were raised last may be even longer still.

"Salaries rose from 30,000 to 36,000 in 2000 and have been fairly stable ever since," says the head of graduate recruitment at one bank. "In 2000 there was competition from dotcoms and a war for talent," he adds. "Today, we have no difficulty attracting staff and until we do, salaries will remain exactly where they are."

The good news for graduates who land jobs in investment banks is that although starting salaries may be stuck at the 35,000 level, they're still substantially higher than the graduate average of just 23,000. Equally promisingly, investment banks responding to the AGR's survey said they expected to increase graduate recruitment by 25% this year compared to last.