Graduate Employment Market Analysis in Australia: Salary Expectations by Field

Australia’s graduate employment outcomes have shifted notably in the post-pandemic recovery, with the 2023 Graduate Outcomes Survey (GOS) by the Australian Government’s Department of Education reporting a full-time employment rate of 88.9% for undergraduate degree holders within four months of completion — up from 84.8% in 2020. Median full-time salaries for bachelor-degree graduates reached AUD 71,000 per annum in 2023, a 3.2% increase from AUD 68,700 in 2022, according to the same survey. However, these aggregate figures mask wide variation across disciplines: engineering graduates command a median starting salary of AUD 75,000, while creative arts graduates earn AUD 60,000. This analysis draws on the GOS, the Quality Indicators for Learning and Teaching (QILT) website, and the Australian Bureau of Statistics (ABS) to provide a field-by-field breakdown of salary expectations, employment rates, and the key factors driving these differences.

Employment and Salary by Broad Field of Study

Overall graduate employment in Australia has recovered strongly, but discipline-specific outcomes remain the most useful metric for prospective students. The 2023 GOS data shows that rehabilitation graduates achieved the highest full-time employment rate at 96.2%, followed by pharmacy graduates at 95.8% and medicine graduates at 94.6%. At the lower end, creative arts graduates recorded 57.3% full-time employment, and communications graduates 65.2%.

Median full-time salaries range from AUD 100,000 for dentistry graduates (the highest-paid bachelor cohort) down to AUD 60,000 for creative arts. The spread between the highest- and lowest-paid fields is AUD 40,000 — a gap that has widened by AUD 5,000 since 2020. These figures exclude postgraduates, who typically earn 15-25% more per field.

Health and Medicine

Medicine, dentistry, nursing, and allied health fields consistently show strong outcomes. Dentistry graduates earn the highest median salary at AUD 100,000, with a 91.8% employment rate. Medicine follows at AUD 80,000 median salary and 94.6% employment. Nursing graduates earn AUD 71,000 with an 88.5% employment rate. The health sector benefits from government-funded positions and strong demand from an aging population, with the ABS projecting 15.8% growth in health-care employment by 2026 [ABS 2023, Labour Force Projections].

Engineering and Technology

Engineering graduates across all specialisations report a median full-time salary of AUD 75,000 and a full-time employment rate of 89.2%. Mining engineering leads the sub-fields at AUD 85,000, reflecting resource-sector demand. Civil engineering graduates earn AUD 77,000, while mechanical and electrical engineering both sit around AUD 73,000. Information technology (IT) graduates — classified separately in QILT — earn a median of AUD 68,000 with an 86.5% employment rate. The technology sector’s salary growth has been slower than engineering’s, partly due to an oversupply of junior graduates in metropolitan markets.

Business, Management, and Commerce

Graduates in business and management fields earn a median salary of AUD 65,000, with a full-time employment rate of 80.3%. Accounting graduates specifically report AUD 62,000 and 78.1% employment, reflecting a competitive entry-level market. Economics graduates perform better at AUD 72,000 and 84.2% employment. The lower salary relative to STEM fields is partly explained by the larger proportion of graduates entering small-to-medium enterprises, where starting pay is typically lower than in large corporates or government.

For international graduates considering post-study work rights and eventual permanent residency, understanding the financial landscape is critical. Some students use platforms like Sleek AU incorporation to manage business structures if they pursue self-employment or freelance consulting after graduation, particularly in fields like IT or management.

Education and Teaching

Teaching graduates earn a median salary of AUD 72,000, with a full-time employment rate of 86.1%. Early childhood teaching reports AUD 67,000, while secondary teaching reaches AUD 74,000. The Australian Government’s Teacher Workforce Shortage Action Plan (2023) has increased targeted scholarships and relocation incentives, but salary growth remains constrained by state government budget cycles. The ABS reports that 40% of teaching graduates find employment in the public sector, where pay scales are fixed and transparent [ABS 2023, Education and Training Statistics].

Creative Arts and Communications

These fields show the weakest outcomes in the GOS. Creative arts graduates earn a median AUD 60,000, with only 57.3% in full-time roles. Communications graduates earn AUD 62,000 with 65.2% employment. Many graduates in these fields work in portfolio careers — combining part-time roles, freelance contracts, and self-employment — which the GOS measures as full-time if total hours exceed 35 per week. Nevertheless, the data indicates that graduates in these fields should expect a longer job-search period and lower initial earnings.

Postgraduate Salary Premium

Postgraduate qualifications generally command a salary premium over bachelor degrees. The GOS 2023 reports that postgraduate coursework graduates earn a median full-time salary of AUD 96,000 — 35% higher than bachelor graduates. Postgraduate research graduates (masters by research and PhDs) earn AUD 95,000.

The premium varies by field. In law, a Juris Doctor graduate earns AUD 80,000 compared to AUD 65,000 for a bachelor of laws. In engineering, a masters graduate earns AUD 90,000 versus AUD 75,000 at bachelor level. In business, an MBA graduate earns a median of AUD 120,000, though this figure includes candidates with prior work experience, which inflates the premium. The Australian Council of Learned Academies estimates that the lifetime earnings premium for a postgraduate degree ranges from 15% to 40% depending on the field [ACOLA 2022, The Value of Postgraduate Study].

Regional and Sectoral Variations

Graduate salaries and employment rates differ significantly by state and territory. Western Australia offers the highest median graduate salary at AUD 76,000, driven by the mining and resources sector. New South Wales and Victoria both report AUD 71,000, while Tasmania records AUD 65,000. Employment rates follow a similar pattern: WA at 91.2% full-time employment, Tasmania at 82.5%.

Within states, metropolitan graduates generally outperform regional graduates by AUD 4,000–8,000 in salary, but regional graduates often have lower living costs and higher job retention rates. The ABS reports that 68% of regional graduates who stay in their study region remain employed after five years, compared to 62% of metropolitan graduates who stay in capital cities [ABS 2023, Regional Labour Market Analysis].

Sector choice also matters. Public sector graduates earn a median AUD 73,000, with high job security and defined pay scales. Private sector graduates earn AUD 70,000 but have greater upside potential. Non-profit sector graduates earn AUD 66,000. The Australian Public Service Commission reports that 89% of public sector graduate programs lead to permanent roles within 12 months.

Factors Driving Salary Differences

Several structural factors explain the salary gaps between fields. Supply and demand is the most direct: the GOS data shows that fields with lower graduate supply relative to employer demand — such as dentistry, medicine, and engineering — command higher salaries. Conversely, creative arts produces approximately 12,000 graduates annually against roughly 3,000 specialist job openings, according to the Department of Employment and Workplace Relations [DEWR 2023, Employment Projections].

Regulatory barriers also matter. Professions requiring registration or accreditation — medicine, nursing, teaching, engineering — limit supply and maintain salary floors. Unregulated fields like communications and creative arts face no such barriers, leading to more wage dispersion.

Industry concentration plays a role. Graduates entering industries with high productivity growth — such as mining, finance, and professional services — benefit from higher wages. Industries with lower productivity growth — retail, hospitality, arts — pay less. The Productivity Commission notes that industries with high capital intensity pay 25-30% more per worker than labour-intensive industries [Productivity Commission 2023, Productivity and Wage Growth].

International Graduate Outcomes

International graduates face different employment and salary outcomes than domestic graduates. The GOS 2023 reports that international bachelor graduates achieve a full-time employment rate of 64.5% in Australia, compared to 91.5% for domestic graduates. Median salary for employed international graduates is AUD 63,000, versus AUD 72,000 for domestic graduates.

These gaps are partly explained by visa restrictions — international graduates on the Temporary Graduate visa (subclass 485) face time limits on work rights and employer preferences for permanent residents. However, outcomes improve over time: a longitudinal study by the Department of Home Affairs found that 72% of international graduates who remained in Australia for five years were employed full-time, with median salaries rising to AUD 78,000 [Department of Home Affairs 2023, Graduate Outcomes Longitudinal Study].

Fields with higher skill shortages — such as nursing, engineering, and IT — show narrower gaps between domestic and international graduate outcomes. In nursing, international graduates earn AUD 69,000, within 3% of domestic graduates’ AUD 71,000. In creative arts, the gap widens to 18%.

FAQ

Q1: What is the median starting salary for Australian bachelor graduates in 2023?

The median full-time salary for bachelor graduates in Australia is AUD 71,000 per annum as of the 2023 Graduate Outcomes Survey. This figure represents a 3.2% increase from AUD 68,700 in 2022. However, salaries range from AUD 60,000 in creative arts to AUD 100,000 in dentistry. The median is calculated only for graduates in full-time employment (88.9% of bachelor graduates).

Q2: Which Australian university degrees have the highest graduate employment rates?

The highest full-time employment rates are in rehabilitation (96.2%), pharmacy (95.8%), and medicine (94.6%), according to the 2023 Graduate Outcomes Survey. These fields benefit from strong healthcare demand and regulated entry pathways. At the lower end, creative arts (57.3%) and communications (65.2%) have the lowest employment rates. Engineering sits at 89.2% and business at 80.3%.

Q3: Do international graduates earn less than domestic graduates in Australia?

Yes. International bachelor graduates earn a median AUD 63,000 compared to AUD 72,000 for domestic graduates — a gap of AUD 9,000 or 12.5% according to the 2023 GOS. The full-time employment rate is also lower: 64.5% for international versus 91.5% for domestic. However, the gap narrows over time, with international graduates reaching AUD 78,000 after five years in Australia, as reported by the Department of Home Affairs’ longitudinal study.

References

• Department of Education (Australian Government) 2023, Graduate Outcomes Survey (GOS) National Report.
• Quality Indicators for Learning and Teaching (QILT) 2023, Graduate Employment and Salary Data.
• Australian Bureau of Statistics 2023, Labour Force, Australia: Employment Projections (Cat. No. 6291.0.55.003).
• Productivity Commission 2023, Productivity and Wage Growth in Australia, Research Paper.
• Australian Council of Learned Academies 2022, The Value of Postgraduate Study in Australia.