Many universities boast that they offer the best paying degree courses, or that they’re the best choice for employability.
But let’s face it: while some universities are certainly better than others in terms of employment prospects, these claims can be difficult to justify. Prospective students need to know that many of these assertions could just be marketing hype.
Although some degree subjects come with a higher starting salary than others, multiple factors will influence how much money you’ll earn once you enter the workforce – not just the subject you study or the university you attend.
Examining graduate destinations, job prospects, and salaries
The 2018 Longitudinal Educational Outcomes (LEO) Report offers data on graduate destinations and salaries based on four key categories:
- earnings by subject studied
- earnings by mode of study
- the significance of prior attainment
- earnings for overseas domiciled graduates by subject
Each category includes statistics for graduate salaries during the first, third, fifth, and tenth year following graduation.
Let’s look at each category in more detail.
Earnings by degree subject
The subject you study at university will play a crucial role in determining your salary amount and your earning potential throughout your career. For instance, certain courses offer more scope for annual salary increases compared to others.
Highest paying degree subjects
It should come as no surprise that medicine, dentistry, and engineering are the best paying degrees. If you study medicine or dentistry, you can expect to earn, on average, £36,000 during the first year after graduation.
Engineering graduates aren’t far behind, earning an average of £25,100 in the first year after graduation.
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Mode of study
Most students choose a full-time or part-time mode of study based on their own time constraints. Did you know that decision can affect your earning potential?
Highest paying degrees based on modes of study
Besides full-time and part-time degree courses, there’s a third mode of study which can increase your earning potential – “sandwich” courses. These courses come with an industry placement, which is advantageous for two key reasons.
First, graduates can earn valuable industry experience whilst still at university. Additionally, that experience will also enhance students’ career readiness, making them more attractive candidates for potential employers.
Those who study “sandwich” courses earn more during their first year in the workforce – £23,200/year compared to £18,200 for full-time graduates. Furthermore, they are also more likely to be employed after graduation.
The significance of prior attainment
Did you know the qualifications you earn before starting university can also affect your earning potential? These qualifications are known as “prior attainment”.
The LEO report found that prior attainment can significantly influence graduate destinations and earnings. Similarly, your assessment scores for these qualifications (e.g. the amount of points you earn during your A-levels) can also affect your future earnings.
Highest paying degrees based on prior attainment
Those with higher qualifications and scores, such as an AAAA or above, earn, on average, over £11,000 more per year compared to graduates with BTEC qualifications – and that’s just in the first year after graduation. The income gap only increases with each year.
Earnings for overseas domiciled graduates by subject
The data also includes international students who graduated from UK universities and took up employment in the UK (i.e. overseas domiciled graduates).
Highest paying degrees by subject (5 years after graduation)
Unsurprisingly, medicine and dentistry are the best paying degrees. Five years after graduation, medicine and dentistry graduates from non-EU countries earn the highest salary at £48,200 per year, while those from the EU start at £45,500.
Other factors which influence graduate destinations
Subject, mode of study, prior attainment, and domicile all affect graduate salaries in different ways.
Although some subjects will inevitably increase earning potential; graduate destinations and salaries are affected by other factors, besides those outlined above.
The university where you study
Graduates from Russell Group universities are more likely to earn higher salaries. For instance, Cambridge graduates with degrees in economics can earn £68,600 per year within five years of graduating.
However, Russell Group universities do not have a monopoly on the best paying degrees. Indeed, it may come as a surprise that lesser-known universities also produce well-paid graduates.
Ever heard of Havering College of Further and Higher Education? It may not be as well-known as Oxford and Cambridge, but graduates of Havering’s engineering and technology programmes enjoy higher salaries, on average, within a year of graduation than any other university or degree programme in the UK.
Gender inequality
It’s a well-known fact that men typically earn more money than women, and the gap only increases with each year.
The first year after graduation, men earn roughly £1,500 more per year on average than women. Compare that to £3,500 more per year after five years – a jump from 8% to 14%.
Socioeconomic background
If you come from an affluent household, you’re not only likely to earn more, but you’re also likely to attend a more prestigious university, which will also increase your earnings.
Even if they study the same course at the same university, graduates from less affluent households earn 10% less, on average, compared to graduates from richer backgrounds.
Graduate destinations: recap
- A variety of factors influence graduate destinations, which means limited significance, should be placed on the concept of “best paying degree”.
- Degree subject is perhaps the most influential factor.
- Sandwich courses are best for enhancing employment prospects and earning potential.
- The qualifications you earn before starting university also affect your employment outcome.
Want to dive into the data about graduate destinations for yourself?
We know firsthand how difficult it is to make sense of all the employment data out there – that’s why we’ve done the hard work for you!
Our essential guide, International Student Pathfinder includes all the data on graduate destinations in the short term and long term, and invaluable advice on your student journey from orientation to graduation – and beyond!
The book is a definitive guide for prospective students looking for sound advice with the perspectives of former students who have studied in the UK.
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