Professional Documents
Culture Documents
November 2017
The graduate
employment gap:
expectations
versus reality
The CIPD is the professional body for HR and people
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The graduate employment gap:
expectations versus reality
Figure 1: Proportion of recent graduates who are unemployed, by subject of study, 2015/16 (%)
Computer science
Mass communications and documentation
Physical sciences
Mathematical sciences
Engineering and technology
Creative arts and design
Historical and philosophical studies
Languages
Business and administrative studies
Social studies
Biological sciences
Combined
Law
Architecture, building and planning
Agriculture and related subjects
Subjects allied to medicine
Education
Medicine and dentistry
Veterinary sciences
0 1 2 3 4 5 6 7 8 9 10
% of total graduates 2015/16
Data from the OECDs Education at a Glance 2017 suggests that the UK has an unusually high share of
graduates in natural sciences, maths and statistics (13% of graduates), more than double the OECD
average (6% of graduates). We have about average levels of graduates in information and communication
technologies (4%) but are below the OECD average in the category of engineering, manufacturing and
construction (9% vs 14%). Overall across the three categories, the UK has 26% of graduates compared with
an OECD average of 24%, while Germany has 37% of graduates, the USA has 18%, and France has 25%.
0 10 20 30 40 50 60 70 80 90 100
% of total graduates 2015/16
Source: Destinations of Leavers from Higher Education 2015/16 (HESA 2017)12
Almost a third of recent There is a substantial gender band of 70,000 or more (14%
graduates end up in jobs pay gap for female graduates of men compared with just 6% of
that pay less than 20,000 across occupational outcomes women). This pattern is repeated
a year, with two-thirds of and by broad subject area across professional occupations,
law graduates falling in this The average (mean) annual salary with over a third of men earning
category for recent graduates by gender is more than 30,000 compared with
It is clear from salary data that 21,500 for females compared with under a fifth of women (23%).
many graduates fail to secure a 24,000 for males. On average,
well-paid job within six months of female graduates are over- While this pattern has been
graduating. Almost a third (29%) represented in lower salary bands previously explained by the
of recent graduates are on salaries and under-represented in higher gendered pattern of graduate
of less than 20,000, which is salary bands. Women are more subject area choice, analysis by
considerably below the current likely to earn less than 30,000 subject of study reveals that the
national average of 28,30013 per year 83% of recent female gender pay gaps exists regardless
(median gross annual salary), graduates are in this category of subject area studied at university.
while 78% of recent graduates earn compared with 71% of men. The gap is particularly wide in
less than 30,000. Again, there is combined degrees (76% of women
huge variation by subject of study, Analysing the data by occupation earn less than 30,000 compared
as shown by Figure 3. Language reveals a stark gender divide in pay with just 51% of men) and
and law graduates are the lowest outcomes. Female graduates who veterinary studies (61% compared
earners, with 93% earning less than managed to secure a job in the top with 46%). The gender pay gap
30,000 a year. occupational band (managers and is smallest for graduates from
senior officials) are almost twice as computer science degrees (73%
likely to be paid less than 20,000 compared with 71%), biological
as their male counterparts (25% of sciences (86% compared with
women in this category compared 82%), and mass communications
with 15% of men) and are much less and documentation (95% compared
likely to fall into the highest salary with 91%).
Law 64 28 5 3
Languages 59 34 52
Combined 52 38 7 3
Subjects allied to medicine 52 33 11 4
Historical and philosophical studies 50 37 8 6
Creative arts and design 49 32 9 10
Engineering and technology 44 45 8 3
Mathematical sciences 35 45 14 5
Agriculture and related subjects 33 32 17 18
Physical sciences 32 45 16 7
Social studies 30 39 13 17
Business and administrative studies 23 48 18 10
Computer science 22 52 18 8
Mass communications and documentation 19 53 19 9
Biological sciences 16 69 9 7
Veterinary sciences 13 69 11 7
Architecture, building and planning 13 51 23 13
Education 5 52 39 4
Medicine and dentistry 2 32 52 14
0 10 20 30 40 50 60 70 80 90 100
% of total graduates 2015/16
Figure 4: Recent graduates earning less than 30,000, by gender and subject (%)
Combined
Veterinary sciences
Law
Agriculture and related subjects
Architecture, building and planning
Education
Business and administrative studies
Social studies
Subjects allied to medicine
Medicine and dentistry
Historical and philosophical studies
Engineering and technology
Physical sciences
Mathematical sciences
Languages
Creative arts and design
Mass communications and documentation
Biological sciences
Computer science
0 10 20 30 40 50 60 70 80 90 100
Male Female % of total graduates 2015/16
Figure 5: Proportion earning less than 30,000 at top ten UK HEIs (%)
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0 10 20 30 40 50 60 70 80 90 100
% of graduates 2015/16
Final thoughts more equitably share the costs of apprenticeships rather than
Rising debt, fuelled by high fees delivering the skills the UK needs. increasing the quantity in
and maintenance grants, coupled Alongside this, there is a need to order to create a meaningful
with huge disparities and poor provide better information, advice alternative route to university for
outcomes for some graduates in and guidance to inform learner young people and employers.
the labour market post-university choice and action to understand A focus on the workplace,
begs the question: is getting a and tackle gender pay disparities. and in particular on improving
degree still worth it? management and leadership
Recommendations quality, must be a key plank
For many the answer is The Government should of the forthcoming industrial
undoubtedly yes. Graduates undertake a review to develop strategy to ensure better job
from vocational subjects such solutions to tackle the gender design and skills utilisation.
as medicine, dentistry, and pay gap.
veterinary studies command high The Government should
salaries and almost all end up in consider linking tuition fees
professional-level occupations to graduate destinations data.
on leaving education. And Far too many higher education
although those studying STEM- institutions are charging the
related subjects are more likely top rate but are delivering poor
to end up unemployed in the outcomes for students.
first six months, those who are The upcoming careers strategy
working get paid more than other should include measures to
graduates and are more likely to improve longitudinal data on
be in a graduate job. However, graduate outcomes by subject
for many others the answer is far studied and institution.
less certain and it is questionable Employers should review
whether the benefits of getting their recruitment strategies
a degree outweigh the costs that to open up opportunities for
high debts alongside delayed non-graduates while ensuring
labour market entry bring. that skills are better utilised
for those roles that do require
It is clear that a more balanced graduate skills.
offer of a high-quality academic The Government must focus
pathway alongside a high-quality more on improving the
vocational offer is needed to quality and progression of
1
INSTITUTE FOR FISCAL STUDIES. 7
BENNETT, M. (2016) What is the EDGE FOUNDATION. (2015) The
11
(2017) Higher education funding UK doing about its STEM skills graduate labour market: an
in England: past present and shortfall? Telegraph. 28 uncomfortable truth. London:
options for the future. IFS November. Available at: www. The Edge Foundation. Available
Briefing Note BN211. London: IFS. telegraph.co.uk/business/ready- at: www.edge.co.uk/sites/default/
Available at: www.ifs.org.uk/ and-enabled/stem-skills- files/documents/graduate_
uploads/publications/bns/BN211. shortfall/ [Accessed 19 employment_an_uncomfortable_
pdf [Accessed 19 September September 2017]. truth.pdf [Accessed 19
2017]. September 2017].
8
DAWOOD, S. (2017) Theresa May
2
INSTITUTE FOR FISCAL STUDIES focuses on STEM subjects in 12
HESA (2017). See note 10.
(2017). See note 1. Governments industrial strategy.
Design Week. 23 January. 13
Annual Survey of Hours and
3
OECD. (2016) Education at a Available at: www.designweek. Earnings (ASHE) 2016, Office for
glance 2016: OECD indicators. co.uk/issues/23-29-january-2017/ National Statistics. (2017).
Paris: OECD Publishing. Available theresa-may-focuses-stem-
at: http://dx.doi.org/10.1787/eag- subjects-government-industrial- 14
HESA (2017). See note 10.
2016-en [Accessed 19 September strategy/ [Accessed 19
2017]. September 2017]. 15
HESA (2017). See note 10.
4
Includes bachelor, masters and 9
CBI. (2012) Learning to grow: 16
Drawing on the Complete
doctoral tertiary education. what employers need from University Guides 2018 league
education and skills: education tables. Available at: www.
5
CIPD. (2016) Alternative and skills survey 2012. London: thecompleteuniversityguide.
pathways into the labour market. Confederation of British Industry. co.uk/league-tables/rankings
London: Chartered Institute of Available at: www.ucml.ac.uk/ [Accessed 19 September 2017].
Personnel and Development. sites/default/files/
Available at: www.cipd.co.uk/ shapingthefuture/101/cbi_ 17
HESA (2017). See note 10.
knowledge/work/trends/ education_and_skills_
alternative-labour-market- survey_2012.pdf [Accessed 19
pathways [Accessed 19 September 2017].
September 2017].
10
HESA. (2017) Destinations of
6
Annual Population Survey (APS) leavers from higher education
April 2016 March 2017, Office 2015/16. Cheltenham: Higher
for National Statistics. Education Statistics Agency.
Bespoke data request, data
analysis by the CIPD.