1. Graduate Destinations... Is HE still worth it? Gemma Ludgate Head of C2 Education The Careers Group University of London

2. Key questions  Grad Vs Non-grad: earnings and employment  Key factors  HEI  Subject  Grade  Conclusions (?)  Resources

3. Grad Vs Non-Grad: employment  58% of 2012 grads unemployed or under- employed 6 months later  56 applications for each graduate job, 7% rise on 2011  But... Non grads still more than twice as likely to be unemployed

4. Continuing Trend... 2010... New grad unemployment: 18.5% (compared to 7.9% whole UK) Aged 21-24 with deg: 11.6% Aged 21-24 without deg: 14.6% ONS 2010 data - www.statistics.gov.uk

5. “The economic advantage of having a degree has dropped by nearly 30% during the past two decades”  Grads still paid more on average but a “high proportion” earned the same as A-level school leavers  2008:23% paid more than 30% above average but 27% paid more than 30% below average Grad Vs Non-Grad: earnings

6. Can students afford not to ‘gamble’? 2012 survey...  23% don’t specify qualifications, 26% specify a degree  Fewer graduates are now in non-graduate jobs - 74% in graduate jobs, 69% in 2006 To earn merely average pay, “it is increasingly necessary to be a graduate”, Dr Brynin writes in “Individual Choice and Risk: The Case of Higher Education”. “To earn merely average pay, it is increasingly necessary to be a graduate” Dr Brynin: “Individual Choice and Risk: The Case of Higher Education”

7. Other factors: subject choice 2010 Browne review: average graduate earns an additional £100,000 over their lifetime compared with someone with just A levels (2002, Dept for Education and Skills)  £340,000 Medicine & Dentistry  £240,000 Maths, Eng & Computing  £52,000 Humanities  £35,000 Arts The Economic Benefits of a Degree, PricewaterhouseCoopers/Universities UK, 2007 www.universitiesuk.ac.uk/Publications/Pages/Publication-257.aspx

8. Other factors: HEI Russell Group Vs non Russell Group (2011)  Unemployment: 7.86% Vs 8.68%  Average FT salary: £25,7k Vs £23,2k

9. Other factors: degree result  May 2013, Centre for Economic Research: Degree classification has a genuine impact on earning potential  Grads from between 2005 and 2010  Grads with a 2,1 paid 7% more than those with a 2,2 - extra £81,000 in working life  2012: 2,1 most common selection criteria used by employers – 76% reject 2,2s. Up from 73% in 2011

10. (Very!) Tentative conclusions  Graduate ‘premium’ still 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!

11. 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.

12. Useful resources http://unistats.direct.gov.uk/ http://wlgd.thecareersgroup.co.uk/ www.prospects.ac.uk/ http://www.london.ac.uk/challenge.html The Careers Group believes that all information provided in this publication is correct at the time of publication. Copyright © The Careers Group, University of London. The Careers Group believes that all information provided in this publication is correct at the time of publication. Copyright © The Careers Group, University of London. 24 June 2013.