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In recent years, young adults and graduates have been voicing concerns that their wages aren’t keeping up with the market trends, with the cost of living eating up more and more of their earnings, leaving them with less to put towards savings.
To understand if this is the case and how earnings and the cost of living have changed for young adults, this study has analyzed data from the National Association of Colleges and Employers (NACE) average earnings and Bureau of Labor Statistics (BLS) expenditure data. This study aims to find out how earnings for new graduates have changed, and whether they are keeping pace with living costs.
The average annual graduate salary, without adjusting for inflation, has changed from $6,084 in 1960 to an estimated $71,838 in 2026. [1] National Association of Colleges and Employers (NACE): Starting Salaries 1960 - 2015 https://www.naceweb.org/job-market/compensation/salary-trends-through-salary-survey-a-historical-perspective-on-starting-salaries-for-new-college-graduates/[2] But adjusting for inflation, using the BLS CPI Inflation Calculator, this actually means 1960’s graduates were earning the equivalent of $67,537 in 2026 money. [3] Bureau Of Labor Statistics (BLS) CPI Inflation Calculator https://www.bls.gov/data/inflation_calculator.htm
Adjusted for inflation, 1969 saw the highest average graduate salary of $86,831 ($9,504 without inflation), while 1994’s graduates had the lowest average annual graduate salary of $62,668 ($28,169 without inflation).
| Graduating year | Average graduate salary | Adjusted salary (Jan 2026) |
|---|---|---|
| 1960 | $6,084 | $67,537 |
| 1961 | $6,302 | $68,783 |
| 1962 | $6,585 | $71,393 |
| 1963 | $6,874 | $73,545 |
| 1964 | $7,045 | $74,155 |
| 1965 | $7,257 | $75,652 |
| 1966 | $7,768 | $79,451 |
| 1967 | $8,312 | $82,173 |
| 1968 | $8,870 | $84,604 |
| 1969 | $9,504 | $86,831 |
| 1970 | $9,951 | $85,624 |
| 1971 | $9,886 | $80,790 |
| 1972 | $10,000 | $79,137 |
| 1973 | $10,543 | $80,496 |
| 1974 | $11,111 | $77,551 |
| 1975 | $12,095 | $75,507 |
| 1976 | $12,730 | $74,469 |
| 1977 | $13,772 | $76,570 |
| 1978 | $15,051 | $78,326 |
| 1979 | $16,692 | $79,489 |
| 1980 | $18,553 | $77,563 |
| 1981 | $20,906 | $78,158 |
| 1982 | $22,449 | $77,429 |
| 1983 | $22,161 | $73,701 |
| 1984 | $23,278 | $74,300 |
| 1985 | $24,289 | $74,882 |
| 1986 | $24,752 | $73,455 |
| 1987 | $24,169 | $70,693 |
| 1988 | $25,886 | $72,770 |
| 1989 | $26,297 | $70,629 |
| 1990 | $27,526 | $70,274 |
| 1991 | $28,030 | $67,733 |
| 1992 | $28,111 | $66,207 |
| 1993 | $28,088 | $64,065 |
| 1994 | $28,169 | $62,668 |
| 1995 | $29,276 | $63,354 |
| 1996 | $30,728 | $64,730 |
| 1997 | $32,047 | $65,514 |
| 1998 | $34,471 | $69,380 |
| 1999 | $35,595 | $70,465 |
| 2000 | $39,824 | $76,735 |
| 2001 | $42,557 | $79,051 |
| 2002 | $40,162 | $73,759 |
| 2003 | $39,296 | $70,342 |
| 2004 | $39,960 | $70,179 |
| 2005 | $42,081 | $71,772 |
| 2006 | $43,321 | $71,055 |
| 2007 | $45,725 | $73,473 |
| 2008 | $49,224 | $75,849 |
| 2009 | $48,633 | $74,916 |
| 2010 | $48,288 | $72,481 |
| 2011 | $51,171 | $75,932 |
| 2012 | $44,259 | $63,509 |
| 2013 | $45,327 | $64,021 |
| 2014 | $48,127 | $66,919 |
| 2015 | $50,219 | $69,890 |
| 2016 | $50,359 | $69,136 |
| 2017 | $50,516 | $67,660 |
| 2018 | $50,944 | $66,849 |
| 2019 | $53,889 | $69,633 |
| 2020 | $55,260 | $69,672 |
| 2021 | $55,911 | $69,520 |
| 2022 | $60,934 | $70,493 |
| 2023 | $61,088 | $66,414 |
| 2024 | $68,558 | $72,300 |
| 2025 | $68,680 | $70,319 |
| 2026 | $71,838 | $71,838 |
The study also looks to review this salary data alongside the historical cost of living in the country. This data from the BLS is only available from 1984 onwards for people aged under 25 (the typical age bracket of graduates). [4] Learn.org - What Age Do You Finish College? Tips on Starting Later https://learn.org/articles/normal-age-finish-college
In 2023, the last time this study was conducted, the data revealed that since 1984 the average graduate salary had fallen by 10.6% when adjusted for inflation in comparison to 2023. Graduates in 1984 earned $68,342 in 2023 money, compared to $61,088 in 2023, a difference of $7,254. However, in 2026, since 1984 graduate salaries have decreased by 3.3% after applying inflation, from $74,300 (adjusted to 2026 inflation) to $71,838.
Taking the NACE data for various bachelor’s degrees and their respective average annual graduate salaries, the study can also show how this salary change over time differs for individual degrees. Click the individual degree in the interactive table below to view the data.
At the time of this report’s creation, the NACE data for 2026 reflects salary projections based on business’ survey responses, not exact reported salaries.
While no specific dataset exists on expenditure for graduates over time, this analysis utilizes BLS consumer expenditure data for adults aged under 25, [5] Bureau Of Labor Statistics (BLS) Consumer Expenditure Surveys - Table 1300, data for under 25 years (age) https://www.bls.gov/cex/csxstnd.htm [6] Bureau Of Labor Statistics (BLS) Consumer Expenditure Surveys - Table 1300, data for under 25 years (age) https://www.bls.gov/cex/tables.htm as well as additional student loan debt figures, [7] Education Data Initiative - Average Student Loan Debt by Year https://educationdata.org/average-student-loan-debt-by-year to better review an example financial environment graduates may have found themselves entering.
A graduate’s finances will differ based on factors such as parental support, living status, and which city/state they live in, however, this analysis seeks to show what an average scenario could have looked like over time.
The below graph shows the annual expenditure the average adult aged under 25 pays according to the BLS’ Consumer Expenditure Survey. [5] Bureau Of Labor Statistics (BLS) Consumer Expenditure Surveys - Table 1300, data for under 25 years (age) https://www.bls.gov/cex/csxstnd.htm [6] Bureau Of Labor Statistics (BLS) Consumer Expenditure Surveys - Table 1300, data for under 25 years (age) https://www.bls.gov/cex/tables.htm This data factors in food, housing, apparel, entertainment, and healthcare spending from the BLS and separate data on student debt. [7] Education Data Initiative - Average Student Loan Debt by Year https://educationdata.org/average-student-loan-debt-by-year
| Year | Annual expenditure for adults aged under 25 with student debt |
|---|---|
| 1984 | $4,435 |
| 1985 | $4,495 |
| 1986 | $4,703 |
| 1987 | $4,829 |
| 1988 | $5,532 |
| 1989 | $5,529 |
| 1990 | $5,642 |
| 1991 | $5,681 |
| 1992 | $5,682 |
| 1993 | $5,729 |
| 1994 | $5,808 |
| 1995 | $6,317 |
| 1996 | $6,483 |
| 1997 | $6,734 |
| 1998 | $6,966 |
| 1999 | $7,587 |
| 2000 | $7,549 |
| 2001 | $8,002 |
| 2002 | $8,116 |
| 2003 | $7,807 |
| 2004 | $8,289 |
| 2005 | $8,571 |
| 2006 | $9,365 |
| 2007 | $9,786 |
| 2008 | $9,929 |
| 2009 | $9,484 |
| 2010 | $9,570 |
| 2011 | $9,761 |
| 2012 | $10,701 |
| 2013 | $10,640 |
| 2014 | $10,596 |
| 2015 | $11,169 |
| 2016 | $11,153 |
| 2017 | $12,021 |
| 2018 | $11,841 |
| 2019 | $13,447 |
| 2020 | $12,413 |
| 2021 | $11,424 |
| 2022 | $12,639 |
| 2023 | $16,124 |
| 2024 | $17,144 |
| 2025 | $17,609 |
| 2026 | $18,089 |
*Adjusted to inflation
Overall, the data shows that the average expenditure for those aged under 25 has increased by 307.9% when comparing 1984 expenditure with 2026 ($4,435 versus $18,089).
| Graduating year | Housing | Food | Clothing | Entertainment | Health | Student debt |
|---|---|---|---|---|---|---|
| 1984 | $2,084 | $1,159 | $521 | $363 | $206 | $102 |
| 1985 | $2,068 | $1,189 | $507 | $395 | $237 | $99 |
| 1986 | $2,358 | $1,192 | $463 | $382 | $202 | $107 |
| 1987 | $2,393 | $1,224 | $493 | $414 | $188 | $117 |
| 1988 | $2,637 | $1,364 | $579 | $534 | $291 | $128 |
| 1989 | $2,657 | $1,391 | $632 | $514 | $193 | $142 |
| 1990 | $2,692 | $1,534 | $574 | $463 | $224 | $155 |
| 1991 | $2,714 | $1,404 | $667 | $503 | $200 | $191 |
| 1992 | $2,703 | $1,379 | $667 | $488 | $219 | $226 |
| 1993 | $2,788 | $1,385 | $631 | $479 | $184 | $263 |
| 1994 | $2,797 | $1,397 | $554 | $509 | $253 | $300 |
| 1995 | $3,109 | $1,416 | $635 | $570 | $245 | $341 |
| 1996 | $3,102 | $1,592 | $678 | $543 | $214 | $355 |
| 1997 | $3,256 | $1,577 | $693 | $584 | $236 | $389 |
| 1998 | $3,417 | $1,708 | $630 | $541 | $247 | $423 |
| 1999 | $3,658 | $1,863 | $662 | $638 | $306 | $459 |
| 2000 | $3,742 | $1,691 | $747 | $574 | $265 | $529 |
| 2001 | $3,992 | $1,960 | $630 | $606 | $279 | $534 |
| 2002 | $3,914 | $1,906 | $718 | $638 | $337 | $604 |
| 2003 | $3,942 | $1,889 | $621 | $528 | $303 | $525 |
| 2004 | $4,026 | $1,955 | $722 | $614 | $344 | $628 |
| 2005 | $4,257 | $1,873 | $751 | $663 | $335 | $692 |
| 2006 | $4,678 | $1,960 | $732 | $674 | $353 | $969 |
| 2007 | $4,799 | $2,071 | $739 | $724 | $400 | $1,054 |
| 2008 | $4,988 | $2,224 | $676 | $804 | $341 | $898 |
| 2009 | $4,868 | $2,090 | $698 | $617 | $338 | $875 |
| 2010 | $4,777 | $2,037 | $780 | $611 | $388 | $980 |
| 2011 | $4,896 | $2,073 | $690 | $640 | $400 | $1,061 |
| 2012 | $5,479 | $2,206 | $623 | $629 | $512 | $1,253 |
| 2013 | $5,190 | $2,349 | $757 | $622 | $472 | $1,252 |
| 2014 | $5,457 | $2,106 | $612 | $628 | $525 | $1,268 |
| 2015 | $5,664 | $2,445 | $636 | $677 | $489 | $1,259 |
| 2016 | $5,696 | $2,276 | $608 | $727 | $581 | $1,266 |
| 2017 | $5,924 | $2,505 | $692 | $783 | $814 | $1,304 |
| 2018 | $6,005 | $2,499 | $594 | $742 | $635 | $1,367 |
| 2019 | $6,706 | $3,071 | $741 | $731 | $795 | $1,404 |
| 2020 | $7,021 | $2,155 | $554 | $603 | $643 | $1,437 |
| 2021 | $6,337 | $2,322 | $417 | $476 | $383 | $1,489 |
| 2022 | $6,857 | $2,512 | $451 | $515 | $414 | $1,889 |
| 2023 | $8,805 | $2,977 | $709 | $918 | $862 | $1,855 |
| 2024 | $8,870 | $3,797 | $811 | $966 | $782 | $1,919 |
| 2025 | $9,107 | $3,899 | $833 | $992 | $803 | $1,976 |
| 2026 | $9,359 | $4,007 | $856 | $1,019 | $825 | $2,023 |
*Adjusted to inflation
From 1984 to 2026, expenditure data revealed that housing costs for adults aged under 25 have increased by 349%, rising from $2,084 per person in 1984 and $9,359 in 2026. Assuming a 20-year repayment term, a student with debt in 1984 would have had annual payments of $102, whereas 2026 graduates will pay closer to $2,023.
The chart below compares average graduate salaries to the average cost of living for adults aged under 25 over time.
| Graduating year | Personal annual expenditure | Average graduate salary |
|---|---|---|
| 1984 | $4,435 | $23,278 |
| 1985 | $4,495 | $24,289 |
| 1986 | $4,703 | $24,752 |
| 1987 | $4,829 | $24,169 |
| 1988 | $5,532 | $25,886 |
| 1989 | $5,529 | $26,297 |
| 1990 | $5,642 | $27,526 |
| 1991 | $5,681 | $28,030 |
| 1992 | $5,682 | $28,111 |
| 1993 | $5,729 | $28,088 |
| 1994 | $5,808 | $28,169 |
| 1995 | $6,317 | $29,276 |
| 1996 | $6,483 | $30,728 |
| 1997 | $6,734 | $32,047 |
| 1998 | $6,966 | $34,471 |
| 1999 | $7,587 | $35,595 |
| 2000 | $7,549 | $39,824 |
| 2001 | $8,002 | $42,557 |
| 2002 | $8,116 | $40,162 |
| 2003 | $7,807 | $39,296 |
| 2004 | $8,289 | $39,960 |
| 2005 | $8,571 | $42,081 |
| 2006 | $9,365 | $43,321 |
| 2007 | $9,786 | $45,725 |
| 2008 | $9,929 | $49,224 |
| 2009 | $9,484 | $48,633 |
| 2010 | $9,570 | $48,288 |
| 2011 | $9,761 | $51,171 |
| 2012 | $10,701 | $44,259 |
| 2013 | $10,640 | $45,327 |
| 2014 | $10,596 | $48,127 |
| 2015 | $11,169 | $50,219 |
| 2016 | $11,153 | $50,359 |
| 2017 | $12,021 | $50,516 |
| 2018 | $11,841 | $50,944 |
| 2019 | $13,447 | $53,889 |
| 2020 | $12,413 | $55,260 |
| 2021 | $11,424 | $55,911 |
| 2022 | $12,639 | $60,934 |
| 2023 | $16,124 | $61,088 |
| 2024 | $17,144 | $68,558 |
| 2025 | $17,609 | $68,680 |
| 2026 | $18,089 | $71,838 |
*Adjusted for inflation
As the charts show, expenditure for those of the typical full-time graduate age (under 25) has steadily increased from $4,435 in 1984 to $18,089 in 2026.
This does assume the individual graduate will be sharing their rent with others as the BLS dataset indicates there is, on average, always more than one adult in a household at this age. The gap between wage and expenditure however would be far greater if rent and bills are not being shared.
In this same time period, the inflation adjusted median graduate salary has decreased in value by $2,462. When adjusting NACE’s figures to inflation in 2026, it was revealed that the median graduate salary had fallen from $74,300 in 1984 ($23,278 unadjusted) to $71,838 in 2026.
Before-tax, the average graduate in 1984 had $18,843 remaining of their median earnings of $23,278. However, by 2020, graduates had remaining earnings of $42,847 from their median earnings of $55,260. In 2026 this gap was slightly better with $53,749 remaining from their median (projected) earnings of $71,838.
Looking at the percentage of salary remaining after accounting for expenditure reveals that 1985 graduates had the highest spending power where they had 81.5% of their pre-tax salaries available after typical living expenses.
The table below shows the top 10 years since 1984 to be a graduate based on the percentage of salary spent on typical expenditure for an adult aged under 25.
| Graduating year | Average graduate salary (not adjusted) | Pre-tax salary remaining after living costs | % of salary remaining after living costs |
|---|---|---|---|
| 1985 | $24,289 | $19,794 | 81.5% |
| 2001 | $42,557 | $34,555 | 81.2% |
| 2000 | $39,824 | $32,275 | 81% |
| 1986 | $24,752 | $20,049 | 81% |
| 1984 | $23,278 | $18,843 | 80.9% |
| 2011 | $51,171 | $41,410 | 80.9% |
| 2009 | $48,633 | $39,149 | 80.5% |
| 2010 | $48,288 | $38,718 | 80.2% |
| 2003 | $39,296 | $31,489 | 80.1% |
| 1987 | $24,169 | $19,340 | 80% |
To analyze how graduate annual earnings have changed over time, alongside the cost of living, the study analyzed recent and historical data on graduate salaries from various non-public-facing (available to members) reports from the National Association of Colleges and Employers (NACE). [1] National Association of Colleges and Employers (NACE): Starting Salaries 1960 - 2015 https://www.naceweb.org/job-market/compensation/salary-trends-through-salary-survey-a-historical-perspective-on-starting-salaries-for-new-college-graduates/[2]
When analyzing the cost of living and how it reflects graduate earnings, the study utilizes Bureau Of Labor Statistics (BLS) expenditures data for adults aged under 25 since 1984, looking at expenditure figures across housing, food, apparel, entertainment and healthcare. The expenditure figures for 2025 and 2026 were inflated using the Consumer Price Index (CPI), where the BLS data was not currently available. The BLS expenditure data was used alongside evidence indicating that 62% of U.S. students will complete their college program within six years, meaning those who begin college at age 18-19 will typically complete their bachelor’s degree between 24-25. [4] Learn.org - What Age Do You Finish College? Tips on Starting Later https://learn.org/articles/normal-age-finish-college
This data is at a household level, therefore to generate figures relevant to an individual, the expenditures were divided by the number of adults in each household (aged under 25), which was different each year, ranging from 1.8 to 2.1 adults. [6] Bureau Of Labor Statistics (BLS) Consumer Expenditure Surveys - Table 1300, data for under 25 years (age) https://www.bls.gov/cex/tables.htm The only exception to this was in 2025 and 2026 where the latest data on the number of adults per household is not yet available. In this instance, the study used the number of adults per household in 2024 for these years. This seeks to reflect one person’s expenditure relative to one graduate.
The average student loan debt by year was sourced from Education Data. [7] Education Data Initiative - Average Student Loan Debt by Year https://educationdata.org/average-student-loan-debt-by-year Typical student loan debt for 2026 was calculated by inflating the figures from 2025 and was based on an average of a 20-year repayment plan, the typical time it takes a graduate to pay off debt. [8] Education Data Initiative - Average Time to Repay Student Loans https://educationdata.org/average-time-to-repay-student-loans
Throughout the study, earnings were analyzed both with and without inflation to show how they have changed over time and as an equivalent to the current jobs and financial markets.
Written on August 14, 2023
Last updated on July 15, 2026
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