Regional cities surpass capitals for graduate pay and job roles

Australian graduates seeking work in engineering, science or technology are likely to find the most abundant opportunities—and often the best pay—outside of Australia's largest cities, according to a new report from OVHC.

The report, which ranked 41 locations across the country, found that regional hubs like Gladstone, Lismore and Mackay are not only offering higher starting salaries than many capital cities, but also significantly more job roles per graduate. While cities like Sydney and Melbourne have traditionally dominated in the overall volume of roles, the study reveals that regional cities are offering a higher concentration of jobs for every qualified graduate.

"This trend reflects a growing need for graduates to consider regional markets, where job supply is more proportional to demand. These locations offer not only better odds of employment but also attractive salaries and lifestyle benefits," said JP Kelly, Head of Insurance at OVHC.

"It is interesting to see the industries across Australia that are opening up the floor to graduates at the highest rate, offering accessible roles to young professionals at all levels of experience," he said.

Graduate salaries: Regional cities lead the way

The study's salary findings may surprise graduates focused on major cities. Gladstone in Queensland, for example, is offering average starting salaries of $80,167—higher than every state capital except Canberra and Darwin. Only Canberra ($84,862) and Darwin ($83,358) report higher average figures for new graduates. By comparison, Sydney and Melbourne trail with averages of $66,628 and $64,809 respectively, placing them at the bottom of the state capitals for graduate starting salaries.

Notably, even the lowest-paid regional cities included in the analysis—such as Orange in New South Wales and Townsville in Queensland—offer new graduates at least $10,000 more on average than both Sydney and Melbourne.

Opportunities per graduate: Regional cities dominate

When it comes to the availability of roles, regional centres far surpass their capital city counterparts. In Lismore, New South Wales, there are 11.3 graduate roles available per 1,000 degree holders—the highest in the country. Mackay and Gladstone, both in Queensland, also perform strongly with 9.52 and 8.31 roles per 1,000 graduates respectively.

By contrast, Darwin is the best-performing capital city but offers only 3.28 roles per 1,000 graduates. The numbers drop even further for Melbourne and Sydney, with fewer than 0.4 roles available per 1,000 graduates in each city. The data suggests that a graduate in Bathurst, New South Wales, can access nearly 40 times as many job opportunities per capita as someone in Melbourne.

Bathurst, which is at the lower end of regional performance for roles per graduate, still manages to offer more opportunities than any capital, and a starting salary almost $15,000 higher than Melbourne.

Graduate-friendly industries

Engineering is ranked as the most graduate-friendly sector, accounting for just over 4% of all graduate roles nationwide. Other prominent sectors for entry-level roles include science, technology and environment (nearly 3%), banking and finance (over 2%), and trades and services (just over 2%).

JP Kelly highlighted the diversity of opportunities for graduates: "It is interesting to see the industries across Australia that are opening up the floor to graduates at the highest rate, offering accessible roles to young professionals at all levels of experience."

A new landscape for graduates

The OVHC report, which used data scraped from CareerOne and the 2021 ABS Census, signals that the traditional path of starting a career in Australia's biggest cities may be changing. Regional areas are not only catching up—they are surpassing capitals both in salary and in job availability for graduates.

Graduates may find they benefit from looking beyond Australia's largest and most expensive cities. As JP Kelly said, "These locations offer not only better odds of employment but also attractive salaries and lifestyle benefits," making regional centres an increasingly appealing option for new graduates launching their careers.