It’s no surprise to learn that, according to research from the Office for National Statistics, many graduates do not have jobs that make full use of their degrees. What might that mean for the debate around expanding student numbers? David Kernohan from Wonkhe tries to unpick the issues.
Are graduates overeducated and underpaid?
Twenty-nine point two percent of graduates are over-educated for their job role five years or more after graduation. Though we can assign some of these to personal choice – either a focus on non-work goals (for example starting a family), or a commitment to low-paid employment (for example for artists and nurses), – we have to contend with the fact that a sizeable proportion of graduates are not in graduate employment more than five years on, however loosely defined that is.
Graduates in non-graduate roles do enjoy a slight premium over their non-graduate colleagues, and are likely to see speedier progression as they remain in their roles. But this is far from the “graduate premium” so often used as a policy justification for student borrowing.
There will be some who, on reading this report, will leap to blaming the graduates themselves, or the institutions that taught them. A purely instrumentalist view of higher education would suggest that they should never have attended university in the first place. But it is equally valid to argue that our employment market is not adequately rewarding people for the skills they bring to the jobs they do – and that the notion of a “graduate job” does not cover the jobs that we all benefit from having graduates do.
This press release from DfE paints a more positive picture, as you’d expect, but this too isn’t without its concerns.
Graduates continue to benefit with higher earnings
The figures show that a degree continues to be a worthwhile investment, however it also revealed that gaps in earnings still exist between different groups of the working age population – with male graduates earning £9,500 more than female graduates, and white graduates also earning £9,500 more than black graduates.