Graduate earning potential falls as student numbers grow
By Maddy Russell, Second Year, Politics and International Relations
The number of students taking degree courses has risen, while the earning power of graduates has fallen by 17 per cent in the past year.
The earning power of university graduates is falling, according to the Office for National Statistics. The additional earnings of degree holders have fallen from 41 per cent to 24 per cent in the last year which is thought to be the result of a higher proportion of graduates pushing down the market value of degrees.
The number of students undertaking degree courses in the UK has risen with over 2.3 million students attending UK higher education institutions in 2016/2017, the most recent figures available. In July to September of 2017 it was estimated that 42 per cent of the UK population aged 21 to 64 have achieved degree qualifications.
Students from Russell Group and pre-1992 universities have maintained relatively high earning potential compared to graduates from newer institutions, suggest recent figures from the Institute for Fiscal Studies. Graduates from universities producing the highest earnings can expect around £40,000 per year for women and more than £50,000 per year for men, five years after graduation.
Despite an overall fall in earning, it seems that degree holders still fair better in terms of salaries than non-graduates. In response to the report from the IFS Alistair Jarvis, Chief Executive of Universities UK said: ‘A university degree is an excellent investment. On average, graduate earn £10,000 per year more than average non-graduates and are more likely to be in employment’.
These statistics come after data released in June 2018 from the Longitudinal Education Outcomes (LEO) showed 11 subject areas taught at the University of Bristol are in the top 10 nationally for graduate earning. Bristol graduates have also been named as the 4th most-targeting by Britain’s top 100 employers in the Graduate Market in 2018 survey, putting Bristol above both Oxford and Cambridge.
Featured Image: Good Free Photos / Unsplash
Do you think your degree is worth it? Let us know