For sixth-formers researching possible university choices, there is no end of data to draw on. While previous generations had to make do with a university prospectus and an open day, now there are hours of “fun” to be had poring over a limitless supply of statistics about graduate jobs.
If you’re trying to decide which degree, at which university, will give you the best chance of a job with the highest salary, it is worth taking a look at websites such as www.discoveruni.gov.uk. Perhaps you’re interested in studying for a degree in economics, which you might reasonably expect to lead to a well-paid job. It often does, but earnings can vary widely depending on which university you studied at.
For example, those who graduated in 2020/21 with a BSc in economics from the London School of Economics and Political Science (LSE) earned an average salary of £42,000 15 months after graduation, according to graduate outcomes data.
Using Longitudinal Educational Outcomes (LEO) data, the Discover Uni website says five years after graduation, an LSE economics graduate would enjoy average earnings of £60,000. An economics graduate from the University of Plymouth can however expect to earn £26,500 after 15 months and £34,000 after five years.
Similarly, a law graduate from the University of Durham might earn an average salary of £36,000 three years after graduation, rising to £50,500 after five years, but if your law degree were from London Metropolitan University, average salaries are £20,500 after three years and £25,000 after five.
The choice of institution can have a huge influence on earning potential. Nick Hillman, director of the Higher Education Policy Institute, says going to a Russell Group university might help secure a good job. “It might make the difference. Employers’ recruitment practices are not always as sophisticated as they should be and membership of the Russell Group is shorthand for excellence.
“In the end, [the data] tells us what the middle classes already tended to think anyway, which is that older universities give you higher returns than newer ones, and science, technology, engineering and mathematics (Stem) give you a higher return than other subjects.”
By contrast, a graduate with a BA in textiles from Manchester Metropolitan University earns £22,000 on average 15 months after graduation. That figure goes down to £19,500 three years after leaving university, rising to £23,500 five years after graduation.
Money matters
Ben Waltmann, a senior research economist at the Institute for Fiscal Studies, Britain’s leading economics thinktank, says: “Subject studied matters hugely for later life earnings, especially for high-achieving students.
“Medicine is a very safe route to high earnings if you can get in, and economics and law also often lead to very high earnings, especially for high achievers willing to work in London.”
Routes such as nursing and pharmacy offer “solid” earnings, says Waltmann, adding: “Other degrees tend to be riskier, although several subjects – including maths, engineering and business studies – still deliver quite a large earnings boost on average.”
Humanities courses lead to a wide variety of jobs and a range of potential salaries. Creative and performing arts graduates tend to have lower earnings, says Waltmann. “Of course, that doesn’t mean people shouldn’t do these degrees, but prospective students should be aware.”
For some subjects, it’s important to try to get into a highly selective university, including Russell Group research-intensive institutions, but this will depend on your predicted grades.
“For a given subject, the evidence suggests that it pays off going to the most selective university you can get into,” says Waltmann. “This matters the most for high-earning subjects such as economics or law – medicine is different because of NHS pay scales – and the least for low-earning subjects such as creative arts.”
Your degree classification, which will depend on the work you put in, is also critical. “Getting at least a 2:1 also really matters,” says Waltmann, “and for many high-earning subjects, there is also a sizeable additional boost from getting a first. This means those who miss out on their aspirational choice of university can make up for it by doing well relative to their peers on a less selective course.”
Mark Corver, a former director of the university admissions service Ucas who runs DataHE, a consultancy advising universities on admissions, notes that how much you might earn after your degree is not the only part of making university choices. “But it is certainly better to know what you might expect before, rather than after making your choices,” he says.
Do your research
“The most detailed government data on what graduates earn relates to 2021/22 – remember this is a few years ago and average pay has gone up by around 20% since then. The 20/21 figure for graduates was just under £30,000,” says Corver.
“Given the general increase in wages since then, that figure would probably be more like £35,000 if it could be measured now. And likely much higher again by the early 2030s when next year’s entrants will have clocked up five years in the workforce.”
But he adds: “There can be a lot of variation across universities and subject. Generally, graduates in more technical or scientific subjects earn more on these measures – like engineering, physics, pharmacology. Subjects such as creative or performing arts, or media and journalism, typically have lower salaries at this point. Some, but not all, of this can be due to different career structures, so more are self-employed than in a salaried position with a big company, for example.
“It’s best to compare subject outcomes for the broad group of universities that you think your expected grades will help you to get into. Universities with higher entry grades – and the subjects they tend to offer, like medicine – usually see higher salaries for their graduates, but your grades will need to be strong enough to gain a place,” says Corver.
“Finally, remember that behind every number in a table is a very wide range of outcomes. Many graduates go on to earn a lot more, or less, than the ‘average’ for their university or course.”
Follow your passion
Hillman also thinks choice of university can matter. “Use the data, absolutely, and do your research,” he says, but adds that following your passion matters just as much as what salary you might earn, because you are more likely to do well in a subject and career that you enjoy.
“I know it’s almost a cliche, but certainly when I talk to school groups, I say think about your heart as much as your head.”
Prof Dame Sally Mapstone, president of Universities UK and principal and vice-chancellor of St Andrews University, says recent research has shown that for most students, if you learn more, you will earn more, even after the investment in your study.
“On average, graduates earn 37% more by the time they are in their 30s than those who chose not to attend university at 18. But of course, university is about far more than just earnings. Friendships, relationships, personal growth and independence – these are just some of the extraordinary benefits our graduates take with them for the rest of their lives,” Mapstone points out.
For sixth-formers starting to look into the cost to them of going to university, Corver provides a final thought.
“Since university tuition fees have been almost frozen [at £9,250 a year] for over a decade this makes them increasingly good value against what you might expect to earn in the future,” he says. “You might even say university courses are ‘on sale’ relative to what you can expect to earn after graduation.”
