Calendar year 2023

Graduate labour market statistics

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Introduction

Graduate labour market statistics is an annual publication which presents labour market conditions for graduates, postgraduates, and non-graduates living in England. The data is available from 2007 to 2023.

Data is presented by graduate type on:

  • Employment, including part-time
  • Employment by personal characteristics
  • Earnings by gender
  • Earnings by industry

Data is used from the Office for National Statistics' Labour Force Survey to produce these statistics. ONS have faced challenges around the falling number of responses to the LFS, which has led to increased sampling variability.

This increase in the volatility in the estimates of employment, unemployment, and economic inactivity led to ONS suspending the usual suite of LFS-based labour market statistics from October 2023 through to January 2024. Further improvements were implemented to tackle some of these challenges, including a review of the LFS weighting approach. Data has been reweighted from July 2022 onwards which has led to slight changes in the GLMS 2023 back series for 2022 estimates, and comparisons of levels prior to this period should be viewed with caution. Full details of the reweighting can be found here: Impact of reweighting on Labour Force Survey key indicators - Office for National Statistics (ons.gov.uk) (opens in a new tab).

ONS expect to see improvements to response levels and rates due to the reintroduction of face-to-face interviews and a sample boost in October 2023 and January 2024, respectively. However, as these improvements will take time to materialise in the LFS data, LFS statistics will be badged as "official statistics in development" until further review. 


Headline facts and figures - 2023

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1. About this release

Introduction

This publication presents a time series of graduates, postgraduates, and non-graduates' employment and salaries living in England from 2007 to 2023. 

For information on data processing and data quality of these statistics, please see the methodology note.

Previous publications on graduate employment and earnings

The Department for Education (DfE) and other bodies have previously published research on the absolute, and lifetime returns to undergraduate degrees. For more detailed econometric analysis of the earnings and employment differentials between graduates and non-graduates, please see the links below:

The DfE also publish other statistics on graduate employment and earnings; LEO graduate and postgraduate outcomes

Data source

Statistics presented in this publication use data from the Office for National Statistics' (ONS) Labour Force Survey (LFS).  ONS have faced challenges around the falling number of responses to the LFS which has led to increased sampling variability.

ONS expect to see improvements to response levels and rates due the reintroduction of face-to-face interviews and a sample boost in October 2023 and January 2024, respectively. However, as these improvements will take time to materialise in the LFS data, LFS statistics will be badged as "official statistics in development" until further review. 

As the results presented in these publications are based on survey data, they represent estimates. Individual estimates may be inaccurate reflections of the true population, and differences between estimates may not be statistically significant.

Coverage

In this publication, graduate type is defined as follows:

  • Graduates are people whose highest qualification is an undergraduate degree at Bachelor’s level;
  • Postgraduates are those holding a higher degree (such as a Master’s or PhD) as their highest qualification; 
  • Non-graduates are those whose highest qualification is below undergraduate level, i.e. National Qualification Framework Level 5 or below (see methodology note for more details). 

All earnings data in this publication are calculated for full-time workers only and are rounded to the nearest £500. Difference between groups (such as the graduate premium) are calculated from unrounded data.  

Information on part-time employment patterns for graduates and non-graduates are also included. For these groups, part-time workers’ employment outcomes are broken down by age group and gender. 

Caveats

Please note there have been methodological changes for the 2023 publication, including amendments to the classification of graduate type and categorising Chinese ethnicity as ‘Asian or Asian British’ as opposed to previously grouping in ‘Other ethnic group’ (see methodology note for more details).

The employment and earnings outcomes for 2020 and 2021 should be viewed against the backdrop of the significant adverse shock to the UK macroeconomy due to the coronavirus (COVID-19) pandemic which severely disrupted business activity in many sectors of the UK economy. 

This publication only provides simple outcome measures based on survey data and does not control for the differences in characteristics between graduates, postgraduates, and non-graduates. This means that the outcomes reported may not be wholly attributable to the fact that an individual holds a particular qualification, but instead could reflect other factors, such as their skills, experience, or geographic location.

2. 2023 key statistics

Employment rates

Working age population (16-64 year olds)

In 2023, graduates and postgraduates in the working age population had broadly similar employment, unemployment, and inactivity rates. Postgraduates saw slightly better outcomes across all metrics. 

Employment outcomes for non-graduates were considerably worse compared to graduates and postgraduates across all three metrics. The unemployment rate was:

  • 5.1% for non-graduates
  • 3.0% for graduates
  • 2.1% for postgraduates

In addition, over one in four non-graduates (27.6%) were economically inactive in 2023, compared to 9.6% of graduates and 8.7% of postgraduates. 

Young population (21-30 year olds)

In 2023, among the young population there is more disparity in the employment rates of postgraduates (90.8%) and graduates (87.4%) compared to the working age population, with a 3.4 percentage point gap. 

Inactivity rates overall are lower for the young population compared to the working age population, with non-graduates seeing the largest difference in inactivity rates (5.3 percentage points). However, the inactivity rates for non-graduates within the young population was still far greater than graduates and postgraduates:

  • 22.3% for non-graduates
  • 7.5% for graduates
  • 6.4% for postgraduates

Unemployment rates are higher across all groups in the young population compared to the working age population, with graduates seeing the largest difference in unemployment rates across the two groups (2.5 percentage points differential). There are many reasons why unemployment rates for young graduates and postgraduates are higher than working age, one explanation could be initial difficulty in entering the job market. 

Type of employment

Working age population (16-64 year olds)

In 2023, the high-skilled employment rate within the working age population is highest for postgraduates at 78.9%. This is 11.9 percentage points higher than graduates at 67.0% and 55.2 percentage points higher than non-graduates at 23.7%. 

Non-graduates are most likely to be in medium/ low-skilled employment at 51.2%. 

Young population (21-30 year olds)

Similarly to the working age population, young postgraduates had the greatest high-skilled employment rate at 76.4% in 2023. In addition, 60.4% of young graduates were in high-skilled employment compared to 20.7% of non-graduates. 

In 2023, high-skilled employment rates are higher across all groups in the working age population compared to the young population. There was a 6.5 percentage points difference between working age graduates compared to the young population. 

There was a smaller difference of 2.9 percentage points when comparing the high-skilled employment rates of non-graduates. This could be due to skills or further qualifications workers accrue throughout their careers which progress them into higher-skilled jobs as they get older. 

Median Salaries

Nominal salaries; working age and young population

In 2023, nominal median salaries were highest among the working age population (16-64 years old), with postgraduates seeing the greatest average earnings at £45,000. This is £10,000 higher than young postgraduates (21-30 years old) at £35,000. 

Whereas non-graduates saw a difference of £3,500 between the young and the working age populations in nominal terms. This suggests that earnings growth is more pronounced later in working life, and people with higher levels of education can expect the most growth.

Real salaries; working age and young population

In real terms, working age postgraduates have the highest earnings at £29,000 which is a £10,000 premium on non-graduates at £19,000. The gap between non-graduates and postgraduates among the young population is £6,000. 

Similarly to nominal salaries, postgraduates can expect the greatest increase in median salary throughout their working life in real terms. The difference in the average real earnings among the young and the working age populations for the graduate types were:

  • £6,500 for postgraduates
  • £5,500 for graduates
  • £2,500 for non-graduates

3. Year-on-year changes in employment rates (2022 - 2023)

Employment rates

In 2023, the employment rate increased for working age (16-64 years old) postgraduates and graduates by 0.1 and 0.4 percentage points respectively. However it fell for working age non-graduates by 0.6 percentage points.

For the young population (21-30 years old), the employment rates for postgraduates increased by 2.1 percentage points in 2023, though it fell for both graduates and non-graduates by 0.8 and 2.0 percentage points respectively. 

The unemployment rates increased for all working age and young population groups, though they fell for young postgraduates by 1.2 percentage points to 3.0% in 2023. 

The biggest difference was seen in the unemployment rate of young non-graduates, where the rate increased by 1.3 percentage points from 5.7% in 2022 to 7.1% in 2023. 

4. Employment rates time series (2007 - 2023)

Employment rates

Working age population (16-64 year olds)

In 2023, employment rates for working age graduates continued to rise, equalling the highest graduate employment rate in the time series.  Increasing to 87.7%, by 0.4 percentage points compared to 2022. This follows a period of sustained growth between 2009 and 2018, also peaking at 87.7%, but dipped in 2019 and 2020. The latest data for 2023 shows that the working age graduate employment rate has recovered to pre-pandemic levels.

The working age postgraduate employment rate rose by 0.1 percentage points to 89.4% in 2023 compared to 2022, the highest employment rate in the time series. 

The employment rate for working age non-graduates fell in 2023 by 0.6 percentage points to 68.7%. This follows annual decline since 2019, showing that working age non-graduates' employment rates are yet to recover to post-pandemic levels.

Young population (21-30 year olds)

In 2023, employment rates fell for both young graduates and non-graduates by 0.8 and 2.0 percentage points to 87.4% and 72.2%, respectively.

The young postgraduate employment rate increased by 2.1 percentage points to 90.8% which is the highest rate since the start of the series in 2007. It had previously peaked at 90.6% in 2016 before it fell in 2017 and 2018.

High-skilled employment rates

Working age population (16-64 year olds)

The likelihood of being in high-skilled employment grows as the level of education increases. In 2023, 23.7% of working age non-graduates were in high-skilled employment, reaching its highest level in the time series. However, this compares to 67.0% for graduates and 78.9% for postgraduates. 

The difference between working age graduate and postgraduate employment rates was 1.7 percentage points. This was greater between high-skilled employment rates, which was 11.9 percentage points higher for postgraduates than graduates. Similarly, the gap between the high-skilled employment rate for graduates and non-graduates is much higher than the overall employment rate gap (43.3% compared to 19.0% respectively).

Young population (21-30 year olds)

Between 2007 and 2023, high-skilled employment rates have fluctuated more for the young population than the working age.

The high-skilled employment rate for young non-graduates fell by 0.3 percentage points to 20.7% compared to 2022, though it has surpassed 2007 levels (20.0%). 

Young postgraduates were most likely to be in high-skilled employment at 76.4% compared to the other groups and levels of high-skilled employment are now like pre-pandemic levels (2019). 

For young graduates, high-skilled employment was 1.3 percentage points lower in 2023 (60.4%) compared to 2022 (61.7%). However, the rate is higher than in 2019 (58.1%) and in 2007 (60.1%).

Unemployment rates

Working age population (16-64 year olds)

The unemployment rate increased across all groups in the working age population in 2023. Since 2007, the working age postgraduate unemployment rate has remained persistently below graduates. In 2023, the unemployment rate was 2.1% for postgraduates compared to 3.0% for graduates.

The unemployment rate was highest for working age non-graduates and increased from 4.9% to 5.1% between 2022 and 2023. The unemployment rate fell annually between 2011 and 2019, before increasing in 2020 because of the COVID pandemic.

Young population (21-30 year olds)

In 2023, young graduates had higher unemployment rates than those of working age. The gap in unemployment rates between working age non-graduates and young non-graduates was 2.0 percentage points, suggesting that obtaining a degree leads to more secure employment.  This gap was higher for graduates at 2.5 percentage points, and 0.9 percentage points higher for postgraduates.

For the young population, the postgraduate unemployment rate fell in 2023 to 3.0% from 4.2% in 2022. However, unemployment rates for young graduates and non-graduates increased year on year to 5.5% and 7.1% respectively. For both groups these rates are below their 2012 peaks; 7.1% for graduates and 13.1% for non-graduates. 

Inactivity rates

Working age population (16-64 year olds)

In 2023, for working age graduates, the inactivity rate fell to 9.6%, the lowest rate of the time series for this group. However, this is still above the postgraduate group at  8.7%. 

Inactivity rates are highest in the working age population in 2023 for non-graduates at 27.6%, which has been increasing since 2019. The annual increases in the inactivity rate for working age non-graduates could provide evidence that there is an increasing number of people in this group choosing not to look for employment.

Young population (21-30 year olds)

There were similarities in inactivity rates for the young population compared to the working age population. The rate is lowest for young postgraduates at 6.4% which is the lowest recorded rate for this group. The young graduates also had the lowest inactivity rate at 7.5% (equalling 2017). 

They were higher for young non-graduates in 2023 at 22.3%, the highest inactivity rate for this group across the time series. The recent increase in the inactivity rate since 2020 for young non-graduates could suggest that there is an increasing number of people in this group choosing not to seek employment.

5. Employment rates by personal characteristics (2023)

Gender

Working age population (16-64 year olds)

In 2023, both working age graduate employment rates and high-skilled employment rates were higher for males than females:

  • Employment rate - 88.6% for males vs 86.2% for females
  • High-skilled employment rate - 70.5% for males vs 63.0% for females

Working age graduate inactivity rates for males (8.7%) were lower than for females (12.1%). However, working age unemployment rates for females (2.0%) were 1.0 percentage points lower compared to males (3.0%) in 2023.  The lower employment rates for female graduates are thus explained by higher rates of inactivity.

Ethnicity

Working age population (16-64 year olds)

White working age graduates had the highest employment rate of 87.6% and high-skilled employment rate at 67.6% in 2023. 

Asian or Asian British graduates saw the lowest employment rate (85.4%), while Black or African or Caribbean or Black British graduates saw the lowest high-skilled employment rate (58.8%). 

The variation in the high-skilled employment rate across ethnicities was much higher (a range of 8.8 percentage points) than the variation in employment rate (a range of 2.1 percentage points). 

Black or African or Caribbean or Black British graduates had the lowest inactivity rate at 8.8%. Graduates in the Asian or Asian British group had the highest inactivity rate at 11.3%. 

Disability status

Working age population (16-64 year olds)

Disabled graduates were less likely to be employed (high-skilled or otherwise) and more likely to be inactive than their non-disabled peers in 2023. The inactivity rate for disabled graduates (19.3%) was more than double the rate for non-disabled graduates (8.7%).

Degree class

Working age population (16-64 year olds)

In 2023, working age graduates with first class and upper second (2:1) degrees had very similar employment rates (88.7% and 88.4%) and inactivity rates (9.3% and 9.5%) respectively. This suggests there was little difference in employment status depending on whether graduates achieved a first class or an upper second (2:1) degree. 

Working age graduates with either a lower second (2:2) and third class degrees had lower employment and high-skilled employment rates, and higher inactivity rates compared to those with first class and upper second degrees. For example, the difference between those who obtained a first and third class degree are:

  • Employment rate – first class degree is 88.7% vs third class degree is 85.0%
  • High-skilled employment rate – first class degree is 70.2% vs third class degree is 57.1%
  • Inactivity rate - first class degree is 9.3% vs third class degree is 11.0%

However, working age unemployment rates were very similar across the higher degree classes, with first class and lower second-class degrees being 2.2%, whilst upper second class was 2.4%. Unemployment rates for third class degrees were higher at 4.4% in 2023.

6. Part-time employment

Proportion of workers in part-time employment in 2023 by graduate type and age group

In the younger age groups, non-graduates have the highest proportion of workers in part-time employment. For example, in the 21-30 age group, 22.3% of employed non-graduates were working part-time compared to 10.1% of postgraduates. 

These proportions level as the age group increases, and among the 51-60 age group, employed graduates have the highest proportion working part-time:

  • Postgraduates is 25.4%
  • Graduates is 26.9%
  • Non-graduates is 25.7%

This suggests that reasoning for part-time employment may differ for post-graduates and graduates compared to non-graduates. For example, as earnings are greater with higher qualifications and age (see section 7), postgraduates and graduates may choose to work part-time later in life due to accumulating more earnings over their working life.

Time series of part-time employment by graduate type

Working age population (16-64 year olds)

In 2023, the proportion of working age employees working part-time increased to 20.0% for graduates (up 0.9 percentage points) and increased for non-graduates to 27.8% (up by 1.0 percentage point) from 2022. In contrast this percentage fell for postgraduates to 19.1% (down 0.3 percentage points).

The proportion of working age employees working part-time has also fallen compared to 2019 (pre-pandemic) for both postgraduates and graduates, whilst for non-graduates it has increased slightly. This may suggest that full-time employment opportunities may have widened for postgraduates and graduates since 2019 but have not for non-graduates.

Young population (21-30 year olds)

In 2023, the proportion of young employees working part-time fell for postgraduates to 10.1% (down 0.4 percentage points) and for graduates to 13.3% (down 1.1 percentage points). In contrast, this increased to 22.3% for non-graduates (up 1.4 percentage points) on 2022.

The proportion of young employees working part-time in 2019 (pre-pandemic) was higher than 2023 for graduates (14.4%), whilst it was lower for postgraduates (9.5%) and non-graduates (21.6%).

Gender; working age population (16-64 year olds)

There were large differences between the genders for both graduates and non-graduates for the proportion of working age employees working part-time. In 2023, there were more females in part-time employment than males:

  • Non-graduates - 43.7% of females vs 13.9% of males
  • Graduates - 30.5% of females vs 9.2% of males

This creates a gender gap of 21.3 percentage points for graduates. For non-graduates, the gap between females and males was higher at 29.8 percentage points.

For female non-graduates this proportion peaked in 2012 at 47.2% and then generally declined before increasing  increasing again in 2022 (42.4%) and 2023 (43.7%). However, the proportion of male non-graduates in part-time employment was the highest throughout the time series at 13.9% in 2023.

7. Salaries time series by graduate type (2007 - 2023)

Nominal median salaries

Working age population (16-64 year olds)

Young population (21-30 year olds)

Salaries are higher for those with higher qualifications and are higher in the working age population than the young population. In 2023, the earnings by graduate type and population group were:

  • Postgraduate - working age at £45,000 vs young population at £35,000
  • Graduate - working age at £40,000 vs young population at £31,500
  • Non-graduate - working age at £29,500 vs young population at £26,000

The difference in nominal medians was largest for postgraduates (£10,000) and smallest for non-graduates (£3,500). This might reflect that postgraduates can expect the greatest growth in earnings throughout their working life. Also, this could be attributable to postgraduates entering the labour force when they are older, thus having less time to increase their wages before the age of 30. 

The difference between the median (nominal) salaries between working age graduates and young graduates in 2023 was £8,500.

Real median salaries

Working age population (16-64 year olds)

Young population (21-30 year olds)

In 2023, real median earnings for working age and young postgraduates and working age graduates fell to their lowest sums since the start of the time series. This is driven by the particularly high inflation in 2023:

  • Working age postgraduates = £29,000
  • Young postgraduates = £22,500
  • Working age graduates = £26,000

In real terms the difference between the median salaries of working age graduates and non-graduates has narrowed over time, decreasing from £10,500 in 2007 to £6,500 in 2023. The difference between the median salaries of working age graduates and postgraduates has also narrowed but to a lesser extent, decreasing from £5,500 in 2007 to £3,000 in 2023.

For the young population, the difference between the median salaries of graduates and non-graduates has also narrowed over time in real terms from £6,000 in 2007 to £3,500 in 2023.

Differences in salary may be attributable to the characteristics of individuals within each group, and not solely due to qualification level or age.

8. Salaries time series by gender (2007 - 2023)

Median salaries by gender

In 2023, median (nominal and real) salaries were higher for males than females across all graduate types in the working age population. The salary differences between males and females for each graduate type are:

  • Postgraduate - £6,000 (nominal) / £4,000 (real)
  • Graduate - £9,000 (nominal) / £6,000 (real)
  • Non-graduates - £6,000 (nominal) / £4,000 (real)

The median nominal salary for working age female graduates were only £3,500 higher than the median nominal salary for male non-graduates in 2023 (£2,500 in real terms). 

In contrast, the median nominal salary for working age male graduates was £13,000 higher than the median nominal salary for male non-graduates 2023 (£8,500 in real terms).

The median nominal salary for female postgraduates was £6,500 higher than female graduates (£4,000 in real terms), whereas the difference between male postgraduates and male graduates was £3,000 (£2,000 in real terms).

Postgraduate nominal median salaries; working age population (16-64 year olds)

Postgraduate real median salaries; working age population (16-64 year olds)

Postgraduate nominal median salaries were higher for males (£48,000) compared to females (£42,000) in 2023. However, the gender gap narrowed slightly to £6,000. Females’ earnings increased by £2,000 in 2023, compared to £500 for males. The gender gap has also narrowed since 2019 (pre-pandemic) with females’ salaries up by £5,000, compared to £3,000 for males.

However, real median salaries for postgraduates fell between 2022 and 2023 for both females (down £500) and males (down £1,500). This can be explained by the impact of particularly high levels of inflation in 2023. The real median salaries in 2023 for females and males were lower than 2019 (pre-pandemic) and 2007, down £4,500 for females and £8,000 for males respectively from 2007. 

Graduate nominal median salaries; working age population (16-64 year olds)

Graduate real median salaries; working age population (16-64 year olds)

Graduate nominal median salaries for females reached £35,500 in 2023, up from £34,000 in 2022 in the working age population. For males nominal median salaries were £45,000 in 2023, up from £43,000 in the previous year. This shows that the gender pay gap was unchanged for graduate working age nominal mean salaries at £9,000 in 2022 and 2023.

Real median salaries were unchanged for graduate females but fell by £1,000 for male graduates in 2023. Again this reflects the impact of high inflation during 2023. Female real median salaries in 2023 were unchanged from 2019 (pre-pandemic) at £23,000, whilst for males it fell £2,000 compared to 2019 to £29,000. Real median salaries in 2023 for working age females were £3,500 less and males £4,000 less than in 2007, before the impact of the 2008/09 economic recession. 

Non-graduate nominal median salaries; working age population (16-64 year olds)

Non-graduate real median salaries; working age population (16-64 year olds)

In 2023, the gender pay gap for working age non-graduates based on nominal median salaries widened to £6,000. For females, average earnings were £26,000 (up £1,500), and £32,000 for males (up £2,000) from 2022. Nominal median salaries for both genders have generally increased year on year.  

Real median salaries for non-graduate females was unchanged at £16,500 in 2023, and was unchanged for males at £20,500. For female non-graduates real annual median salaries in 2023 are also unchanged compared to 2007. Male non-graduate real median salaries in 2023 are unchanged from 2019 but were £1,000 less than in 2007.  

Caveats

Since median salaries are calculated for individuals employed in full-time work only, the higher proportion of females in part-time work does not contribute to the gender pay gaps in these figures. Data on the proportion of men and women in part-time work can be found at the Office for National Statistics’ dataset on full-time, part-time and temporary workers (opens in a new tab)

Using median salaries mitigates against average values being skewed by extremes. However, it conceals other features of the data, for example, that the difference in pay between the sexes is largest among high earners. Further analysis of the gender pay gap in 2023 can be found in the Office for National Statistics’ publication: Gender pay gap in the UK: 2023 (opens in a new tab).

9. Median salaries by industry (2023)

Median graduate nominal salaries by industry

Gender; working age population (16-64 year olds)

Young population (21-30 year olds)

In 2023, males had higher median salaries than females across all industries and age groups.  

In the working age graduate population, the highest median (nominal) salaries were for:

  1. Males in energy and water (based on low sample counts) - £62,500
  2. Males in banking and finance - £50,000
  3. Males in manufacturing - £49,500 

In the young graduate population, highest median (nominal) salaries for all graduates were for:

  1. Construction - £43,500
  2. Banking and finance - £35,500
  3. Manufacturing - £34,500

Female graduates in the working age population had the highest median salaries when working in manufacturing (£47,000) and transport and communication (£40,000). 

Males and females employed in distribution or hotels, or restaurants had the lowest median salaries across those of working age (£34,500 and £24,500 respectively). For the young population, graduates employed in distribution or hotels or restaurants had the lowest median salaries (£24,000). 

Help and support

Methodology

Find out how and why we collect, process and publish these statistics.

Official statistics in development

These statistics are undergoing a development. They have been developed under the guidance of the Head of Profession for Statistics and published to involve users and stakeholders at an early stage in assessing their suitability and quality.

They have been produced as far as possible in line with the Code of Practice for Statistics.

This can be broadly interpreted to mean that these statistics are:

  • managed impartially and objectively in the public interest
  • meet identified user needs
  • produced according to sound methods
  • well explained and readily accessible

Find out more about the standards we follow to produce these statistics through our Standards for official statistics published by DfE guidance.

Contact us

If you have a specific enquiry about Graduate labour market statistics statistics and data:

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Email: PSPSTeam@education.gov.uk
Contact name: Steve White
Telephone: 07712423965

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