Do you really need a degree to succeed?

With hundreds of thousands of young people joining the jobs market, what are the prospects for those who took an academic route rather than a vocational one? By Niki Chesworth

NEARLY 400,000 graduates have recently left university. Add to that the hundreds of thousands leaving schools and colleges with either A-levels or vocational qualifications, and you have a huge surge in the number of young people looking for work.

Yet there are already some 340,000 16- to 24-year-olds not in full-time education who are unemployed — and that means there is fierce competition to get a step on the first rung of the career ladder.

So who fares best? Well, graduates tend to earn more, are more likely to be in work and to work at a higher level in more interesting careers — but that’s not always the case.

HOW DO THEY COMPARE?

The average employment rate for 21- to 30-year-olds with a degree is 86.1 per cent. For non-graduates the rate is significantly lower, at 73.9 per cent. Inactivity rates are also twice as high for those without a degree.

In terms of the types of employment they manage to get, graduates also do much better with nearly six in 10 (57 per cent) of 21- to 30-year-olds in high-skilled employment compared to just two in 10 (19.2 per cent) of nongraduates.

Throughout their working lives graduates also earn more, with a median graduate salary of £34,000 — that’s £10,000 more than for non-graduates. At the start of their careers up to the age of 30, median salaries for grads are around £30,000, compared to £21,000 for non-grads.

THE DANGER OF AVERAGES

However, these are just averages. Graduates from some degree courses have average earnings of just £14,000 a year six months after graduating with only one in four in a professional job.

So a degree is only worthwhile if it gets results. Check unistats.ac.uk to find which courses do best.

Apprentices also do well. As they are trained by employers, they usually find a job when they gain their qualifications.

Also, as not every young person is a c a d e mi c , they can play to their strengths — and avoid student debts.

As the average apprentice earns over £16,700 a year, rising to more than £18,400 in London, according to Glassdoor, their earnings are already higher than some graduates — and they

have the potential to earn more.

Bricklayers earn £40,000+, roofers and plasterers are earning nearly £30,000 and, of course, we have all read that plumbers are raking in as much as bankers. The so-called “trades” are doing well.

Most of the near-300,000 completing an apprenticeship each year already have a job and do not have to endure the demoralising fate facing many graduates, who end up working in shops or sales because they cannot find a job worthy of their degree.

DO YOUR RESEARCH BEFORE APPLYING TO UNI

However, apprenticeships are not just for those who cannot get into university — many require at least three good Alevels.

Yet many young people are unaware that a great career is possible without a degree.

For example, nearly eight in 10 say you need a university degree to work in a management role in the world’s most prestigious organisations, according to research from Association of Accounting Technicians (AAT).

This includes tech giants Google, Microsoft and IBM, as well as global accounting firms KPMG, JP Morgan and

PwC. And in all examples, this is not the case.

Young people were also unaware that you do not actually need a degree to become a solicitor, aerospace engineer, accountant or a nuclear scientist.

Also, according to the AAT research, if you ask successful people about whether or not a degree will pay off, they tend to place more value on onthe-job-training and work experience than a university degree.

APPRENTICES CAN ACTUALLY EARN MORE

There is a also myth that you need a degree to earn a decent salary. But look at building and construction as an example.

Research by the Federation of Master Builders in 2018 found that the average salary for electricians around the country is £47,265 compared to £32,000 for the average university graduate.

The other advantage of taking up a trade is it is likely run up less debt and, once qualified, individuals can then set up their own business.

Apprenticeship starts have begun to increase (up 7.1 per cent in the first three quarters of 2018/19), with 311,200 starting apprenticeships from August to April.

And this is not for the full year, so it is not far off the number going to university each year (533,360). With 13.8 per cent more younger people opting for an apprenticeship compared to last year, this vocational route is catching up with the more academic path.

THE BEST OF BOTH WORLDS

However, the biggest winners are those embarking on higher apprenticeships — which can include those leading to a debt-free degree.

There has been a huge increase in the numbers starting these higher apprenticeships — 59,800 were started in just the nine months from August to April, which is 68 per cent up on the year earlier.

With some degree apprenticeships paying more than graduate salaries — along with no debt, a degree and an almost guaranteed job — it is not surprising that these have surged in popularity.

That is why a recent report from Universities UK is urging the government to reform the degree apprenticeship system so many more people can become degree apprentices.

There is not just a lack of supply (more employers need to offer these) but also a lack of awareness.

The Future of Degree Apprenticeships report discovered that four out of every five school pupils in those key careerchoice years (years 10 and 12) know little or nothing about the application process for degree apprenticeships.

Alistair Jarvis, chief executive of Universities UK, says: “Degree apprenticeships combine learning in the work place with a high-quality education, allowing students to earn while they learn.

“They are starting to have a significant impact on sectors with skills shortages, such as digital technology, nursing, policing, and teaching.”

SO, WHICH IS BEST?

Degrees which also offer hands-on learning to develop real-world skills definitely come out on top. We just need more of them.

Ask employers and they agree. Close to half find young people leaving school, college or university are not ready for the jobs market.

“Young people have knowledge and potential in abundance, but the rounded character, real world experience and creativity need to apply knowledge is sometimes lacking,” says John Cope, CBI head of education and skills.