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Graduate Destinations ... Is HE still worth it? Gemma Ludgate Head of C2 Education The Careers Group University of London Key questions Grad Vs Non-grad: earnings and employment Key factors HEI Subject Grade Conclusions (?) Resources Grad Vs Non-Grad: employment 58% of 2012 grads unemployed or underemployed 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 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 Grad Vs Non-Grad: earnings “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 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 Can students afford not to ‘gamble’? “To earn merely average pay, it is increasingly necessary to be a graduate” Dr Brynin: “Individual Choice and Risk: The Case of Higher Education” 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 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 Other factors: HEI Russell Group Vs non Russell Group (2011) Unemployment: 7.86% Vs 8.68% Average FT salary: £25,7k Vs £23,2k 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 (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! 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 partjustification for the cost. 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. Useful resources http://www.london.ac.uk/challenge.html http://unistats.direct.gov.uk/ http://wlgd.thecareersgroup.co.uk/ www.prospects.ac.uk/ 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.