Graduates settle for unqualified positions
UNIVERSITY graduates are increasingly landing jobs that only require a Year 12 education as wage growth soars for those who skip tertiary education.
While many people often see science, commerce and legal degrees as desirable qualilfications, a new reports shows many who secure these qualifications end up taking jobs in sales and administration.
The Grattan Institute report found male graduates in science were hit hardest, with work secured in professional and managerial areas dropping by 10 per cent in five years to 2016.
“Between 2008 and 2016, there were about 970,000 new bachelor degree graduates but only 875,000 professional and managerial jobs created,” Grattan’s Higher Education Program Director Andrew Norton said.
The report also found the financial benefit of going to university is declining.
Male university students are the worst affected with their average annual earnings decreasing by 3 per cent from 2006 to 2016 – a trend not reflected among men who entered full-time work straight after school.
The average annual earnings for women who worked straight after school grew by 10 per cent over the same period, outstripping their university educated peers whose average earnings rose just 4 per cent.
For women who were university educated, annual average incomes in nursing increased by 10 per cent over the decade and 8 per cent for those working in education.
For university-educated men, earnings similarly grew at 7 per cent for those working in education but fell 6 per cent for science and 7 per cent for commerce graduates.
While graduates still earned more than people who only completed Year 12, the gap narrowed over a decade.
In 2016, female graduates earned almost $14,000 more than Year 12-educated counterparts – a drop of 8 per cent in a decade – while male graduates earned almost $13,000 more – a decline of 6 per cent.
Meanwhile, school leavers’ incomes rose by 10 per cent to $32,123 for women and less than 1 per cent to $41,594 for men.