New Research Reveals Earnings Potential of the Region's Graduates Compared to Non Graduates
NOT FOR PUBLICATION OR BROADCAST BEFORE 00,01 HOURS, THURSDAY 27 JUNE 2002
Graduates Earn Over £4,000 pa More Than Their Non
people in the East Midlands seeking lifelong financial security should look to
higher education according to new research out today (27 June, 2002) which
reveals that the region's twenty-somethings in possession of a degree or
equivalent earn over 25 per cent (26.6
per cent) more than their peers who have no formal degree or equivalent
substantial earnings differential increases with age and by the time East
Midlands graduates are aged 31-40, they can expect to earn 48.1 per cent more
than their non graduate age peers, and a staggering 85.9 per cent more by age
figures, presented in the latest Graduate Market Trends report from CSU, the
higher education Careers Services Unit, show that young graduates in the East
Midlands aged 21-30 have average earnings of £19,663 compared to £15,533 for
non graduates, a difference of £4,130 per annum. By age 31-40, graduates earn £9,343 pa more (£28,779
compared to £19,436), and by the time they reach 41-50 they earn on average £15,964
pa more (£34,559 compared to £18,595).
of the Careers Service at the University of Leicester, Mr Martin Pennington,
said: "These figures are good news for graduates in the East Midlands
region and demonstrate that there are considerable financial rewards in choosing
to study for a degree.
there is more to a degree than that. Students today have to invest time and
money into their education, often forfeiting more immediate gratification from
taking a job in the interests of enhancing their qualifications. Indeed, they
are likely to return to university again at different stages of their life in
order to boost their careers.
empowers them to cope with a changing world where no job is for life - but a
degree is. It equips them with the
skills and knowledge they need allowing them to make a positive contribution to
their chosen careers.
latest survey of University of Leicester graduates shows that 94% of known
graduates went either straight into employment or decided to continue studying
for a further qualification after leaving this University. Many of these
graduates find well-paid and rewarding jobs after graduating with employers who
value both the subject knowledge and the transferable skills that Leicester
graduates bring to the workplace.
the new figures in the Graduate Market Trends disguise the large differences
that exist between the top graduate earners, often working for City financial
companies and consultancies, and the more modest earnings of those, especially
beyond the south-east, who choose to work for employers where the financial
rewards are not so great, for example, in the public sector, small firms, and
the voluntary sector.
University education has many benefits, both for the individual and for society
generally. The University of Leicester is proud to produce graduates of all
types who seek rewards and satisfaction in different but equally valuable
on the CSU findings, CSU's chief executive, Mike Hill, said:
jobs, a degree is for life and judging by these figures, higher education would
appear to be a very financially worthwhile investment.
This news will also be a timely boost for final year students who are
predicted to graduate this summer with average debts approaching £10,000.
These considerable earnings differentials suggest that graduates could
discharge student loans within a comparatively short time following graduation
whilst still retaining an above average income."
Warwick, Chief Executive of Universities UK said:
report once again highlights the value of a university degree. In a time of
uncertainty over jobs in general, it is clear that those who undertake a
university education are excellently placed to meet the challenges and reap the
rewards of a rapidly changing knowledge-based and competitive market
Market Trends also highlights the latest graduate salary and vacancy details and
reveals that the highest graduate starting salaries by type of work are found in
management consultancy (average £19,726), IT (£18,835), and engineering and
technology service (£18,717). Employers
seeking graduates from 'any science', 'any numerate discipline', 'any computer
related subject' and 'electronic engineering' also offered mean salaries of more
graduate vacancies in property and construction have risen by 17.3 per cent from
the previous year, an increase attributed to the booming housing market, overall
graduate vacancies have fallen as the demise of dotcoms, the after effects of
foot and mouth on tourism and agricultural industries; and the downturn in US
markets take their toll. Graduate salaries in the UK however, remain buoyant at
£17,722 on average - virtually unchanged from the previous year.
has been an economically difficult winter for graduate employers and many have
been holding back with their recruitment to see how the economy recovers from
this series of events. Graduate
recruitment in the public sector, however, appears particularly buoyant with
many employers struggling to fill places. This
should help absorb some of the slack of the private sector.
judging by attendance at the latest season of graduate recruitment fairs, always
a reliable indicator of the graduate market, we are now seeing a reversal of
fortunes and students can once again look to the employment market with real
optimism," said Mike Hill.
The Prospects Today Salary and Vacancy Survey, featured in Graduate Market Trends, analyses vacancies in the CSU publication, Prospects Today, and utilises the largest sample of employers of graduates in the UK. Employers are mainly SMEs and large blue chip companies. Occupations which require additional qualifications, such as law, medicine and education, are not covered in this survey.
and non-graduate earnings by region of place of work information is taken from
four quarters of the Labour Force Survey (LFS), from December 2000 to November
2001. The LFS is a random sample survey of households in the UK undertaken by
the Office for National Statistics, covering around 15,000 households every
quarter. For the purposes of this analysis, information on individuals'
employment and educational background is used.
CSU, the higher education Careers Services Unit, produces over 800 different career guides, graduate marketplace reports and the Prospects Series of recruitment and postgraduate course directories and magazines, career planning software, web and online options to enhance the careers advice provided in higher education careers services. All information is accessible on www.prospects.ac.uk.
Smith / Pat Hindley
Telephone: 020 8879 1234
Mobile: 07770 500 194
This document has been approved by the head of department or section.