Wednesday, 6 April 2011

Graduate earnings

Apologies for the inadvertent once-a-month posting schedule. And I wonder where the readers have gone.

Anyway, two stories on graduate salaries out this morning. The first is this analysis by Incomes Data Services, finding that graduate starting salaries are likely to be static again this year.

The average starting salary quoted by IDS of £25,166, tells us that their sample is very blue-chip and probably London- and finance- focused, but the basic point is that the market remains tight for employers and, hence, graduates and will probably remain so for a little while. 

IDS also mention that employers are looking to recruit more than they did last year - in line with AGR predictions, and also makes the unsurprising point that public sector recruitment looks set for a reduction.

Meanwhile, this analysis by the ONS is interesting. The ONS have analysed earnings data across the population (aged 22 to 64) between 2000 and 2010 and have concluded that degree holders, on average, earned £12,000 a year more than those without a degree.
To quote:
  • Earnings are similar for those aged 22 at around £15,000, regardless of whether they have a degree or not
  • For those without a degree, earnings increased for each year of age, levelling off at the age of 30 and peaking at the age of 34 at £19,400
  • For those with a degree, earnings increased faster for each year of age. They also increased for longer, levelling off at the age of 35 and peaking at £34,500 at the age of 51. After this point average wages decreased as it is more likely that the high earners were able to retire and leave the labour market
Some other interesting points:
  • graduates aged 22 to 64 had median salaries of £29,900 compared with £17,800 for non-degree holders. I would guess people would think median salaries were rather higher than that.
  • For women without a degree earnings levelled off at the age of 31, with earnings for women with a degree levelling off around the age of 33
  • For men without a degree earnings levelled off at the age of 34, with earnings for men with a degree levelling off around the age of 39. ("Bother", says 40 year old labour market analyst)
  • Highest salaries for both graduates and non-graduates were in banking and finance, with the graduates averaging £37,300 and the non-graduates £20,300
An interesting insight into the labour market and a useful demonstration that the benefits of a degree take some time to fully realise.

2 comments:

jamie.jenkins said...

Short video on the graduate earnings story here http://bit.ly/eTpvn7

Charlie Ball said...

Thanks Jamie - very useful and sorry for not linking to it earlier