Graduate earnings vary greatly by course and university, data finds

More than 20,000 arts graduates in the UK are earning below minimum wage, while other courses’ salaries vary greatly by both course and university standing.

Despite each accruing around £50,000 in student debt, 20,000 arts students from 15 universities were found to earn less than minimum wage on average a year after graduating. By contrast, medicine and dentistry graduates earn over twice as much on average.

Salaries also vastly differ depending on the graduate’s university, with one business management course at University of Oxford earning graduates almost six times the salary as the same course at Birmingham Newman University.

During the time this data was gathered, minimum wage was £7.83 an hour. It has since risen by almost 60% to £12.21 an hour.

Specialist arts institutions recorded some of the lowest earnings in the dataset. Graduates from the Conservatoire for Dance and Drama had average salaries of £19,000 one year after leaving, while those from the Arts University Plymouth earned £20,400.

The lowest-earning quarter of graduates from these institutions earned just £12,000 and £13,600 respectively.

The findings have prompted discussion about the value of some degree courses. Many students leave higher education with substantial debt from tuition and maintenance loans, often exceeding £50,000.

Iain Mansfield of the think tank Policy Exchange said: “Too many people are going to university.” He called for a 20-30% reduction in university places, alongside more investment in apprenticeships.

While graduate earnings do generally rise over time, outcomes can differ widely depending on subject, institution, and career path. While higher education can lead to high salaries for some, others face lower earnings and significant debt after completing their degrees

Others argue that graduate outcomes should be considered over a longer time period.

Five years after graduation, the average salary across all universities rises to £31,800. Only graduates from the Conservatoire remained below the minimum wage threshold at this stage.

Subject choice plays a large role. Graduates in medicine and dentistry earned an average of £53,300 after five years, while performing arts graduates earned £24,800.

University standings also hold a large sway over graduate salaries. A business management graduate from Birmingham Newman University earned £24,100 five years after graduation. The same course at the University of Oxford had an average salary of £93,800, with the top quarter earning £142,700.

Earnings can also vary within the Russell Group of universities. Graduates from the University of Liverpool earned £34,300 on average five years after leaving, compared with £47,400 for graduates of the University of Bath.

While graduate earnings do generally rise over time, outcomes can differ widely depending on subject, institution, and career path. While higher education can lead to high salaries for some, others face lower earnings and significant debt after completing their degrees.