Why students who choose to go to university this autumn will earn more

Published on 8, August, 2024

Graduates from the University of Sunderland and across the north-east will earn more through their lifetime compared to those who chose employment instead.

Ahead of A-level results day on Thursday, analysis of government data, which has tracked earnings from the age of 18 to 30, shows most graduates rapidly catch-up with and overtake non-graduates, with the salary difference increasing throughout their careers.

Graduates earn more than non-graduates over the long term and across multiple industries, even after the costs of studying – and higher taxes - are factored in.

This week, school-leavers – as well as mature students – are set to change their lives at the University during one of the busiest weeks in the academic calendar.

Hundreds of staff and ambassadors in Sunderland are expected to support those going through the Clearing process after receiving their A-level, T-level and BTEC results on Thursday.

And the data suggests, university remains a financially viable route to success.

The latest analysis compared earnings for graduates with contemporaries who held the right qualifications to enter higher education but opted to seek employment instead. The new figures, based on government data linking student and tax records, show that on average:

• Graduates overtake those who chose not to go university within just a few years, earning at least 20% more once they are in their mid-20s. By age 30, graduates typically earn 37% more than non-graduates, and the gap is even higher (38 %) for those from economically deprived areas
• Once over 30, the salary gap continues to widen considerably, although the difference is lower for women.
• Graduates aged over 30 are more likely to be in work, and far less likely to be claiming benefits, than those without a degree.
• On average, graduate earnings are above £40,000 across all regions of the UK 10 years after graduation, and above £50,000 in London.

Professor Dame Sally Mapstone, President of Universities UK, said: “This analysis shows choosing a degree really does pay off and that if you learn more, you’ll earn more throughout your working life. With the potential to significantly increase earnings wherever you live or sector you work in – including the arts and media – this data clearly demonstrates that salary growth for graduates is a marathon, not a sprint.

“It is crucial we do not lose sight of the many ways graduates find meaning and fulfilment in their careers beyond just their salary. However, this new analysis will be welcome for students, graduates and prospective students who have chosen to invest in their education. We hope today’s news will encourage more people to take a degree, either after A-levels, as an apprentice or later in life.”

On average, earnings for graduates are higher over time regardless of socio-economic background.  Graduates from a free school meals background will typically earn over a third more than non-graduates from the same background by the age of 30.

The University of Sunderland's Clearing hotline is already up and running and students can contact the University team directly on 0191 515 3000 or go online for more information on Clearing, open days and events here.

Or visit our Clearing guide here.

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