The latest Graduate Outcomes data shows significant differences in the early career salaries of graduates who studied the same subject at university…
Since the introduction of the Teaching Excellence Framework (TEF) and the development of Longitudinal Education Outcomes (LEO) data based on tax records, graduate salary information has been thrust to the forefront of the debate on employment and employability.1
And while graduate salary data is often used to question the value of a degree in the current economy, there is strong evidence suggesting 'that there are substantial positive financial returns to a degree'.2 However, HESA's Graduate Outcomes data also reveals sizeable variations in earnings between graduates, with some seeing much larger financial returns than their counterparts.
Previously, we utilised this data to examine salary differences between graduates who studied different subjects.3 Going a step further, this article will use the most recent Graduate Outcomes data (pertaining to 2020/21 graduates) to briefly examine the impact that employment level4 can have on the median earnings of graduates within the same subject area.
Graduates in high skilled employment report higher salaries
Subject area | Proportion in high-skilled employment |
---|---|
Medicine and dentistry | 99% |
Veterinary sciences | 94% |
Subjects allied to medicine | 89% |
Architecture, building and planning | 89% |
Education and teaching | 88% |
Mathematical sciences | 84% |
Computing | 82% |
Engineering and technology | 81% |
Law | 80% |
Physical sciences | 78% |
Geography, earth and environmental studies (social sciences) | 77% |
Combined and general studies | 74% |
Geography, earth and environmental studies (natural sciences) | 72% |
Social sciences | 71% |
Business and management | 70% |
Media, journalism and communications | 70% |
Language and area studies | 68% |
Biological and sport sciences | 65% |
Historical, philosophical and religious studies | 65% |
Design, and creative and performing arts | 62% |
Psychology | 53% |
Agriculture, food and related studies | 43% |
Source: Graduate Outcomes 2020/21: Summary statistics
The vast majority of UK domiciled, first-degree graduates reported that they were in high skilled employment 15 months after graduation, with science graduates (79%) being more likely to say this than non-science graduates (73%). Furthermore, with graduates in high skilled employment reporting salaries significantly higher than those in low and medium skilled employment, it comes as no surprise that science graduates were more likely to report higher median salaries as well.
Subject area of degree | High skilled | Medium skilled | Low skilled | All skill levels |
---|---|---|---|---|
Medicine and dentistry | £35,000 | N/A | N/A | £35,000 |
Veterinary sciences | £32,000 | £22,500 | N/A | £32,000 |
Engineering and technology | £30,000 | £25,000 | £22,000 | £29,500 |
Mathematical sciences | £30,000 | £23,000 | £19,500 | £29,000 |
Computing | £30,000 | £22,000 | £20,000 | £29,000 |
Physical sciences | £28,000 | £22,000 | £20,000 | £27,000 |
Combined and general studies | £27,000 | £23,000 | £21,000 | £26,500 |
Subjects allied to medicine | £26,000 | £21,500 | £20,000 | £26,000 |
Architecture, building and planning | £26,000 | £23,500 | £22,000 | £26,000 |
Social sciences | £28,000 | £22,000 | £21,000 | £26,000 |
Geography, earth and environmental studies (social sciences) | £27,000 | £23,000 | £20,500 | £26,000 |
Education and teaching | £26,000 | £19,500 | £19,000 | £25,500 |
Geography, earth and environmental studies (natural sciences) | £26,000 | £22,000 | £20,000 | £25,000 |
Business and management | £27,000 | £23,000 | £21,500 | £25,000 |
Language and area studies | £25,500 | £21,500 | £20,000 | £25,000 |
Historical, philosophical and religious studies | £26,000 | £21,500 | £20,000 | £25,000 |
Biological and sport sciences | £25,000 | £21,000 | £20,500 | £24,000 |
Agriculture, food and related studies | £25,000 | £21,000 | £22,000 | £24,000 |
Psychology | £24,500 | £20,500 | £20,000 | £23,000 |
Law | £24,000 | £22,000 | £20,000 | £23,000 |
Media, journalism and communications | £23,000 | £22,000 | £19,000 | £23,000 |
Design, and creative and performing arts | £24,000 | £21,000 | £20,000 | £22,500 |
Total | £27,000 | £22,000 | £20,000 | £26,000 |
Source: Graduate Outcomes 2020/21: Summary statistics
However, the data also reveals significant differences in median salaries between graduates who left university with a degree in the same subject area.5 For instance, while those who graduated with a degree in computing are among the highest earning graduates 15 months after graduating, computing graduates who were in low and medium-skilled employment when surveyed reported median salaries significantly lower than those who were in high-skilled employment (See table above).
With the majority of computing graduates (81%) finding high-skilled employment 15 months after graduating, the median salary of computing graduates of all skill levels (£29,000) is above average (£26,000). Nevertheless, when disaggregated by employment level we find that a fifth (19%) of computing graduates reported median salaries significantly lower than this.
Moreover, 70% of business and management graduates were in high-skilled employment when surveyed, with the average business and management graduate in high-skilled employment (£27,000) reporting above average (£26,000) median earnings. Yet, similar to computing graduates, there are disparities between the earning of business and management graduates based on employment level, with those in medium and low-skilled employment earning significantly less than those in high-skilled employment. Up to 30% of business and management graduates reported that they were in medium or low-skilled employment (See table above).
1 | 2.1 | 2.2 | 3 | |
---|---|---|---|---|
High skilled | 78% | 69% | 52% | 49% |
Medium skilled | 16% | 19% | 26% | 27% |
Low skilled | 6% | 12% | 22% | 24% |
Source: Graduate Outcomes 2020/21: Summary statistics
Interestingly, when we disaggregate business and management graduates by degree classification, we find a positive correlation between degree classification and level of employment, with those who graduated with a First or upper Second Class degree being much more likely to report that they were in high-skilled employment when surveyed. Consequently, business and management graduates who left university with better degree classifications were more likely to find high paying jobs than those with a lower degree classification - a pattern that holds true for graduates in all subject areas.
This finding reinforces how important degree classification remains in relation to early-career outcomes.6 Just getting a degree in a subject area associated with high financial returns is not necessarily enough to secure a high-paying job immediately after leaving university, the quality of the degree also matters. It will be interesting to see whether this changes as more employers remove degree classification requirements for their graduate programmes.7
Given these findings, when reporting on salary data it is important to note these intra-subject differences, so as not to mislead students who are using salary data to inform their career decisions. As an example, although most young people who pursue a career in computing are likely to find high-skilled and high-paying work upon leaving university, they must also be aware that a sizeable proportion of computing graduates do not earn above average salaries in their early careers.
Notes:
- Graduate salaries in context: what do they really mean?, Prospects Luminate, 2019.
- How graduate salaries vary by degree subject, Prospects Luminate, 2023.
- Ibid.
- According to the UK Standard Occupational Classification (SOC). Major groups 1 to 3 are grouped together as 'High skilled'. Major groups 4 to 6 are grouped together as 'Medium skilled' and 7 to 9 are grouped as 'Low skilled'.
- Salary data used in this analysis pertains to UK domiciled full-time graduates who obtained first degree qualifications and entered full-time paid employment in the UK (Figure 14).
- Impact of degree classification on early career outcomes, Prospects Luminate, 2022.
- Let's see - it's '23: forecasting the graduate labour market, Prospects Luminate, 2023.
Was this page useful?
Thank you for your feedback