U.S. companies are paying recent college graduates lower salaries in 2024 while fewer co-op/intern students saw increases as competition heated up, according to a new study by ASE in Troy.
ASE’s 2025 Starting Salaries for Co-op Students and Recent College Graduates Survey, which included 138 Michigan companies, showed that starting salaries fell in 2024 because fewer companies planned to hire new employees.
Although co-op/intern students continued to see increased rates in 2024, only 40 percent the participants in the study said they were doing so, a drop from 51 percent in 2023.
“The ASE 2025 Starting Salaries Survey highlights a shifting landscape for new graduates, with fewer companies planning to hire and slower wage growth for co-ops and interns, signaling a more challenging and competitive labor market for those entering the workforce,” says Mary Corrado, president and CEO of ASE.
Other findings from the study include:
- More than six of 10 respondents (66 percent) say their company has hired a recent college graduate in the past year or plans to hire one in 2025. This is a decrease from what was reported in 2023 (72 percent).
- The top six in-state institutions survey respondents actively recruit from are: 1) University of Michigan-Ann Arbor; 2) Michigan State University; 3) Oakland University 4) Wayne State University; 5) Michigan Technological University; 6) Kettering University.
- The top three knowledge/skill factors organizations consider when making hiring decisions, in order, are: computer skills, related coursework (i.e., to the work required in the job), and degree level.
- 78 percent of respondents reported that they do notprovide benefits to co-ops/interns
- Of the 22 percent of respondents that provide benefits to co-ops/interns, 40 percent provide medical coverage, 60 percent provide paid holidays, 40 percent provide paid sick or personal days, and 60 percent provide tuition assistance.
- The highest average starting salary was electrical engineering at $77,471. This is a slight decrease from the previous year ($78,151). The second and third highest average starting salaries were mechanical engineering ($75,362) and manufacturing engineering ($73,570).
- The average salaries for select non-technical roles were as follows: HR/labor relations at $62,394, psychology at $48,699, social work at $46,995, and communications at $46,337.
Organizations participating in the study comprised a range of industries and sizes. Companies with 100 employees or fewer nationally made up 36 percent of the sample while those with 101 to 499 accounted for 46 percent. The remaining 18 percent were larger than 500 employees.
A variety of industries have been represented in the survey, with durable goods manufacturing (47.8 percent) leading the pack. Trades and services (23.9 percent) were the second-largest industry representation.
This survey is available at no cost to ASE Members via the ASE Survey Library. It is available for $415 for non-member participants and for $825 for non-member non-participants. Request to purchase here.
