Trainees are Citys poor cousins

Trainee salaries at law firms are lagging behind the rest of the City, a new survey reveals.

The Association of Graduate Recruiters (AGR) Graduate Recruitment Survey 2007 finds that trainee solicitors at City firms can expect a median starting salary of 35,700.

This is 4 per cent lower than their peers in investment banks, who receive 37,000. Meanwhile, investment fund managers can look forward to earning 36,000 each year.

The median for law firms, however, has increased by more than 15 per cent in the last year. It previously languished around the 30,000 mark.

First-seat trainees at magic circle firms Clifford Chance and Allen & Overy receive 35,700.

Other law firms have pushed trainee pay beyond the median. Freshfields Bruckhaus Deringer starts its trainees on 38,000 and US firm Paul Hastings Janofsky & Walker pays 40,000.

The nationwide median is 23,500, which includes professional services outside of the City.

The AGR study goes on to show that City firms are becoming more competitive, with more than two-thirds looking for a minimum qualification of a 2:1.

Carl Gilleard, chief executive of AGR, said that the study of 219 employers shows that there are many job opportunities out there for graduates.

However, he warned: Graduates must realise that academic achievements are not enough to secure a position and focusing on developing softer skills such as team-working is important for graduate-level positions.