Every year, around 4 million students graduate from college and enter the workforce in search of a high-paying entry-level job. According to a new report from NetCredit, not all states offer the same level of opportunities.
NetCredit ranked the states based on entry-level job vacancies on Indeed.com and MIT's living wage calculator and discovered that 40 percent of entry-level jobs in the United States don't meet the living wage for their areas.
Why It Matters
Salary matters significantly for entry-level workers, but the cost of living in certain cities can impact how far money can stretch and overall quality of life as well. By taking into account both factors, workers can enjoy a salary that aligns with their city's cost of living for housing, food, transportation, and more.
What To Know
The best states for entry-level jobs offering salaries above the local living wage were Minnesota, Missouri, Wisconsin, Wyoming, and Ohio. All of the cities had at least 79 percent of all entry-level job listings offering salaries above the local living wage, with a whopping 92 percent of all entry-level jobs in Minnesota meeting the state's cost of living.
Some cities also had better entry-level options for workers than others. The top city was Bakersfield, California, where 100 percent of the new job listings met the local living wage. Bakersfield was the only city where this was the case.
"Bakersfield hitting 100 percent is pretty amazing," Michael Ryan, a finance expert and the founder of MichaelRyanMoney.com, told Newsweek. "Every single entry-level job there pays a living wage. And honestly? The Midwest dominance wasn't something most people saw coming. We're so used to thinking coastal cities are where the opportunities are."
Fargo, North Dakota; Toledo, Ohio; Sioux Falls, South Dakota; and Detroit, Michigan, also had high percentages of entry-level jobs offering above the local living wage. The top five cities' job listings all exceeded 84 percent in meeting the city's cost of living.
"Bakersfield honestly shocked me. It's proof that even in high-cost states, employers can meet the bar. They just usually choose not to," HR consultant Bryan Driscoll told Newsweek.
"Entry-level job doesn't have to mean underpaid and overworked. Recent grads should demand better, look beyond prestige markets like New York or LA. The best opportunity might be in a place you hadn't considered."
What People Are Saying
"What's troubling is that in the entire country, only one city—Bakersfield, California—has 100 percent of its entry-level jobs that start at or above the local living wage..." said Alex Beene, a financial literacy instructor for the University of Tennessee at Martin.
"Grads may face a tradeoff: take a higher-paying job in a less appealing area or earn a little less to live somewhere with better weather or quality of life," added Kevin Thompson, the CEO of 9i Capital Group.
What Happens Next
Graduates seeking entry-level roles are encouraged to consider the job offer's entire package, not just its base salary. "A $45,000 job in Minneapolis might give you a better lifestyle than a $55,000 job in a high-cost coastal city," Ryan said.
Comments
Join Our Community
Sign up to share your thoughts, engage with others, and become part of our growing community.
No comments yet
Be the first to share your thoughts and start the conversation!