A degree provides a lifetime of financial security

Young people seeking lifelong financial security should look to higher education as their starting point, according to new research out (27 June 2002) which reveals that Britain''s twenty-somethings in possession of a degree or equivalent, earn nearly forty percent (39.8 percent) more than their age peers who have no formal degree or equivalent qualifications.

This substantial earnings differential increases with age and by the time graduates are aged 31-40, they can expect to earn 63.1 percent more than their non graduate peers, and by age 41-50, are a staggering 71.4 percent ahead.

These figures, presented in the latest Graduate Market Trends report from CSU, the higher education Careers Services Unit, show that young graduates aged 21-30 have average earnings of 22,302 pa compared to 15,948 for non graduates in the same age bracket, a difference of 6,354 per annum. By age 31-40, graduates earn 12,953 pa more (33,472 compared to 20,519), and by the time they reach 41-50, they earn on average 14,558 pa more (34,958 compared to 20,400).

Commenting on the CSU findings, CSU''s chief executive, Mike Hill, said: Unlike jobs, a degree is for life, and judging by these figures, higher education would appear to be a very financially worthwhile investment. This news will also be a timely boost for final year students who are predicted to graduate this summer with average debts approaching 10,000. These considerable earnings differentials suggest that graduates could discharge student loans within a comparatively short time following graduation, whilst still retaining an above average income.

Diana Warwick, chief executive of Universities UK said: This report once again highlights the value of a university degree. In a time of uncertainty over jobs in general, it is clear that those who undertake a university education are excellently placed to meet the challenges and reap the rewards of a rapidly changing knowledge-based and competitive market place.

Graduate Market Trends also highlights the latest graduate salary and vacancy details and reveals that the highest graduate starting salaries by type of work are found in management consultancy (average 19,726), IT (18,835), and engineering and technology service (18,717). Employers seeking graduates from ''any science'', ''any numerate discipline'', ''any computer related subject'' and ''electronic engineering'' also offered mean salaries of more than 19,000.

Whilst graduate vacancies in property and construction have risen by 17.3 percent from the previous year, an increase attributed to the booming housing market, overall graduate vacancies have fallen as the demise of dotcoms, the after effects of foot and mouth on tourism and agricultural industries; and the downturn in US markets take their toll. Graduate salaries in the UK however, remain buoyant at 17,722 on average - virtually unchanged from the previous year.

It has been an economically difficult winter for graduate employers and many have been holding back with their recruitment to see how the economy recovers from this series of events. Graduate recruitment in the public sector, however, appears particularly buoyant with many employers struggling to fill places. This should help absorb some of the slack of the private sector.

Also, judging by attendance at the latest season of graduate recruitment fairs, always a reliable indicator of the graduate market, we are now seeing a reversal of fortunes and students can once again look to the employment market with real optimism, said Mike Hill.