YOUNG VOICES

Graduate Job Pay Gap Closes As Report Suggest University Isn't Worth It

18/03/2013 09:16 GMT

The difference in pay between graduate-related jobs and other employment has fallen in some subjects over the past few years, new research has revealed.

The so-called graduate premium has declined in certain subjects, which researchers said was a concern to students facing thousands of pounds in tuition fees.

Starting salaries for graduate-type jobs increased by 11% between 2005 and 2010 from £19,423 to £21,574 after adjustment for inflation, according to the analysis for the Complete University Guide.

But the advantage in graduates' earning power has fallen over the years, said the report.

Dr Bernard Kingston, principal author of The Complete University Guide, said: "These figures clearly demonstrate the decline in the graduate premium in certain subjects, and must be a concern to students when choosing what to study at university when tuition fees exceed £8,000 a year in England and Wales.

"We believe it is very useful for young people thinking of their choice of subject to see how the earning potential for the occupations for which they may qualify changes over a short time. While financial returns are not the only consideration, they are becoming more important, whether we like it or not.

"However, with a volatile labour market, it is extremely difficult to predict the future for any particular subject."