People who choose to study at university will earn more throughout their career, even after accounting for the cost of their education.
That’s the outcome of recent analysis from Universities UK, which shows that graduates from Liverpool Hope University and across the country will earn more over their lifetime than those who chose employment instead.
Ahead of results day on Thursday 15 August, Universities UK tracked earnings from the age of 18 to 30 and found 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.
Claire Brownlie, Director of Student Futures at Liverpool Hope University, said: “Going to university is an investment in your future and this analysis reiterates that doing so can have long-term career benefits.
“Our Careers and Employability Service ensures students have the right information, advice and opportunities to thrive in their chosen profession and, as a result, we see that our graduates continue to enjoy greater job prospects, increased earning potential and significant professional development.”
Universities UK is the collective voice of 142 universities in England, Scotland, Wales and Northern Ireland.
Their 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 30 are more likely to be in work, and far less likely to be claiming benefits, than those without a degree.
- Graduate earnings are above £40,000 across all regions of the UK 10 years after graduation, and above £50,000 in London.
The data also highlights that graduates from a low socio-economic background will typically earn more than a third more than non-graduates from the same background by the age of 30.
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.”
Clearing is now open. If you are interested in applying to Liverpool Hope through Clearing, visit our Clearing Hub to discuss your options with a member of our team.