UUK analysis shows students who choose to go to university this Autumn will earn more – with extra boost for students from poorer backgrounds
Released: 15.08.24
Graduates from Plymouth Marjon University and across the South West will earn more through their lifetime compared to those who chose employment instead, new analysis of government data has found.
Ahead of results day this August, Universities UK tracked earnings from the age of 18 to 30 and shows most graduates rapidly catch-up with and overtake non-graduates, with the salary difference increasing throughout their careers. Graduates earn more than non-graduates over the long term and across multiple industries, even after the costs of studying – and higher taxes - are factored in.
Professor Claire Taylor, Vice-Chancellor at Plymouth Marjon University, said:
"At Plymouth Marjon University, our degrees are carefully curated to train our students to become thoughtful leaders and confident professionals, enhancing their career opportunities and bolstering the public sector. You learn academic skills, hone your research capabilities, and create new personal and professional relationships to last a lifetime. By choosing a degree, you could enjoy a fulfilling career and a comfortable lifestyle."
The analysis compared earnings for graduates with contemporaries who held the right qualifications to enter higher education but opted to seek employment instead. The new figures, based on government data linking student and tax records, show that on average:
Graduates overtake those who chose not to go university within just a few years, earning at least 20% more once they are in their mid-20s. By age 30, graduates typically earn 37% more than non-graduates, and the gap is even higher (38 %) for those from economically deprived areas.
Once over thirty, the salary gap continues to widen considerably, although the difference is lower for women.
Graduates aged over thirty are more likely to be in work, and far less likely to be claiming benefits, than those without a degree.
On average, graduate earnings are above £40,000 across all regions of the UK 10 years after graduation, and above £50,000 in London.
Professor Dame Sally Mapstone, President of Universities UK, commented:
“This analysis shows choosing a degree really does pay off and that if you learn more, you’ll earn more throughout your working life. With the potential to significantly increase earnings wherever you live or sector you work in – including the arts and media – this data clearly demonstrates that salary growth for graduates is a marathon, not a sprint.”
“It is crucial we do not lose sight of the many ways graduates find meaning and fulfilment in their careers beyond just their salary. However, this new analysis will be welcome for students, graduates and prospective students who have chosen to invest in their education. We hope today’s news will encourage more people to take a degree, either after A-levels, as an apprentice or later in life.”
On average, earnings for graduates are higher over time regardless of socio-economic background. Graduates from a free school meals background will typically earn over a third more than non-graduates from the same background by the age of 30.
Again, on average, those who has the right qualifications to enter higher education but opted to seek employment instead are more likely to be claiming out-of-work benefits by age 30. This is twice as likely in the North West to four times as likely in some parts of the country (such as the South West, South East, East Midlands and East of England).