Presentation on theme: "Graduate Destinations... Is HE still worth it? Gemma Ludgate Head of C2 Education The Careers Group University of London."— Presentation transcript:
Graduate Destinations... Is HE still worth it? Gemma Ludgate Head of C2 Education The Careers Group University of London
Today’s session Grad Vs Non-grad: earnings and employment MOOCs Loan system Key factors HEI Subject Grade Conclusions (?) Resources
Grad Vs Non-Grad: Now BIS Labour Force Survey: Q1 2014 87.3% of young graduates are employed compared to only 62.1% of young non-graduates. 57.4% of young graduates are in high-skilled employment. 86.7% of working-age graduates are employed compared to only 66.3% of non-graduates. The median nominal salary of working-age graduates is £31,500, while the median nominal salary of working-age non-graduates is £20,750. 92.4% of graduates aged 25-30 are employed today, compared to 93.4% in Q1 2008.
Grad Vs Non-Grad: Future “Employers expect to hire 18% more graduates in 2014, up 4.3% in 2013” “Increased activity has failed to translate into higher graduate starting salaries: 65% have not increased their rates for 2014” “The stagnation of graduate salaries is seen as an indication that the supply of graduates remains high” * 2014 annual report from Incomes Data Services
Grad Vs Non-Grad: Distant future? “Many of the jobs expected to drive economic growth in the future will not necessarily require a traditional academic pathway.” “In 2022, the top three in-demand occupations will all be in health and care; nearly three million workers will be required in hospitals, care homes and the community” *Commissioned by The Edge Foundation: ‘dedicated to raising the status of technical, practical and vocational learning’
Grad Vs Non-Grad: earnings “Men with a degree earn 28 per cent more than those without one, while for women the differential is 53 per cent.” “A degree will earn graduates an extra £252,000 over their lifetime for women and £168,000 for men” *BIS, The Impact of University Degrees on the Lifecycle of Earnings: Some Further Analysis, August 2013
Postgrad premium “There is a significant wage premium for those with postgraduate qualifications. Somebody with a Master’s can on average expect to earn £5,500 more a year – or £200,000 over a 40 year working life - than someone only holding a Bachelor’s degree.” “The overall wage premium for staying on in higher education after acquisition of a first degree and obtaining postgraduate qualifications is increasingly more lucrative over time.” * The Sutton Trust, February 2013
Student loans "We estimate that 73% will have some debt written off at the end of the repayment period, compared with 32% under the old system. The average amount written off will be £30,000.“ “Due to above inflation interest 45% of graduates will pay back more than they borrowed in real terms” *Institute for Fiscal Studies (IFS), April 2014
Other factors: HEI Russell Group Vs non Russell Group (2011) Unemployment: 7.86% Vs 8.68% Average FT salary: £25,7k Vs £23,2k Hussain et al (2009): the effects of HEI quality on earnings is statistically significant, but small compared to the overall return to higher education average –one standard deviation in HEI quality results in a 6% earnings
Other factors: subject choice *The Complete Universities Guide
Other factors: degree result Grads who failed to get a 2,1 or 1st earn around £80,000 less (over a lifetime) LSE, June 2013: those with 2,1 degrees earned £2,000 more per year after graduation.
(Very!) Tentative conclusions Graduate ‘premium’ exists But... Students should consider the status of the HEI, the course they are thinking of and aim to get a 2,1 But... A 2,1 isn’t enough on it’s own! Work experience and extra-curricular stuff matters ... Make the most of uni careers services!
Final thoughts from the horse’s mouth A May 2013 survey of 500 Fresher's (studentmoneysaver.com) showed that: Although 58.4% felt their first year wasn’t worth the £9000, 86.2% would enrol into university if they had to make the choice again 84.4% would recommend university to someone considering it 1.6 % expressed dissatisfaction with every aspect of their first year 20% of comments mentioned the university ‘experience’ as part- justification for the cost.