25.11.08
Graduate earnings uncovered: new 1994 Group report
Universities are delivering on student expectations of higher graduate salaries, according to a new report by the 1994 Group of student-focused, research-intensive universities. The report compares students’ employment and earnings expectations when they begin university with the reality of what they achieved three and half years after graduation. It found:
> More than 80% of graduates are either ‘very satisfied’ or ‘fairly satisfied’ with their careers
> Nearly two thirds of graduates can expect to earn more than £20k a year by the time they have been in the job market for three and a half years
> More than a third can expect to earn in excess of £25k
> A postgraduate qualification provides a boost to earning power
> Nearly 80% of graduates are satisfied with their choice of institution
> After three and a half years 80% of those in employment were identified as being in ‘graduate level’ employment.
Professor Steve Smith, Vice-Chancellor of the University of Exeter and Chair of the 1994 Group, revealed the report’s findings at a Policy Exchange Breakfast Debate this morning. He was, speaking alongside Shadow Secretary of State for Innovation, University and Skills David Willetts MP.
Said Professor Smith: ‘Students make very well considered choices when choosing institutions and courses – and these are decisions they don’t regret further down the line. There is a strong correlation between what students expect and what they get as far as employment and earnings are concerned. The vast majority of students – regardless of institution attended and subject studied – find their employment prospects and earnings potential are significantly enhanced by their experience of higher education. This underlines the importance of universities’ efforts to widen participation and improve fair access.’
The 1994 Group report responds to Lord Sainsbury’s call for improved information about the benefits of a degree in terms of employability and earnings premia. An increasing number of young people are seeking and obtaining a degree, and graduate employment is becoming more competitive. It is therefore important that higher education institutions are able to understand and articulate the value of a university education (although there are clearly numerous other benefits to getting a degree).
Although the vocational subjects of education and law top the table for employability, graduates from institutions across the sector are more likely to receive graduate-level jobs if they studied science and technology than arts and social sciences. Students of computer science, engineering/technology or business studies were most likely to be earning over £30k. More than 50% of UK graduates from historical and philosophical studies were earning under £20k after three and a half years. Least likely to be earning under £20k were education graduates.
The data hide some differences between students from research-intensive and other institutions, and between science and technology and arts and social sciences students. The most prominent difference between the two university groupings is in science and technology, in which research-intensive graduates attract higher earnings than at other institutions. This is most marked in the £30,000 to £50,000 band in which 31.7% of graduates from research-intensive universities were placed, compared with 16% of graduates from other institutions. This trend is repeated to a less pronounced extent amongst arts and social sciences graduates of both groups.
Notes for Editors:
1. The full report Graduate employment and earnings: Are universities meeting student expectations? can be downloaded from the 1994 Group website:
www.1994group.ac.uk/documents/public/081118_GEEresearchReport.pdf .
2. The 1994 Group brings together eighteen internationally renowned, research-intensive universities. The Group provides a central vehicle to help members promote their common interests in higher education, respond efficiently to key policy issues, and share best methods and practice.
3. Member universities are: University of Bath, Durham University, University of East Anglia, University of Essex, University of Exeter, Birkbeck University of London, Goldsmiths University of London, Royal Holloway University of London, Lancaster University, University of Leicester, Loughborough University, Queen Mary University of London, University of Reading, University of St Andrews, School of Oriental and African Studies, University of Surrey, University of Sussex and University of York.
4. For the purposes of this study the member institutions of the 1994 Group and Russell Group are combined and referred to as ‘Research-intensive Universities’. The membership of each group can be found on their respective websites: www.1994group.co.uk/memberinstitutions; www.russellgroup.ac.uk. All other UK HEIs are referred to as ‘Other institutions.’ The sector benchmark, all UK HEIs, is referred to as ‘All institutions’.
5. In Race to the Top: A Review of Government’s Science and Innovation Policies, (October 2007), Lord Sainsbury of Turville reported that ‘we believe that there is a major gap in information provision and that students, universities and governments should be able to make their decisions on the basis of the best possible up-to-date information. We also believe that more students will take STEM subjects at university when they see the many options that open up to them as the result of taking a STEM subject at university, and the excellent rewards that they can as a result receive.’ (para 7.71)
6. Data on student perceptions has been derived from Opinionpanel Research, Higher Expectations 2007/08: Module 1 Overview Report. More information on Opinionpanel can be found at http://www.opinionpanel.co.uk. Data on graduate employment and earnings has been obtained from an analysis of the DLHE Longitudinal Survey, a sample survey designed to provide information about the destinations of leavers from higher education after approximately 3½ years. This survey has, to date, been carried out on only one occasion in order to provide up-to-date information about students graduating in 2002/03. For more details on the DLHE Longitudinal Survey methodology, see: http://www.hesa.ac.uk/dox/dlhe_longitudinal/0203/DLHE_Long_2002_03_FINAL.pdf
7. The median salary of graduates in full time work three and a half years after graduation was £23,000, based on the DLHE survey. This is considerably higher than median incomes for non-graduates, according to the Labour Force Survey, which shows that the median salary of non-graduates aged between 25 and 27 - when they have been in work considerably longer than three and a half years - was just £17,400.
8. The report will be launched at a Policy Exchange Breakfast Debate starting at 08.30 26 November 2008. Further information on this event can be obtained from events@policyexchange.org.uk.
9. The 1994 Group is sponsoring the 2nd Annual ‘Enhancing the Student Experience Conference’ which will take place on 26 November 2008. Further information on this conference can be obtained from http://www.neilstewartassociates.com/jb253/
10. Professor Bob Burgess, Vice-Chancellor of the University of Leicester and member of the 1994 Group Chair’s Advisory Group is available to speak to the media to discuss the report and its conclusions.
11. An RSS news feed service providing updated information on the activities of the 1994 Group is available at http://www.1994group.ac.uk/rss.php
Press Enquiries: Tom Norton, Director of Internal Policy Development, 1994 Group. Tel: 0207 872 5599; Email: enquiry@1994group.co.uk