If you’re graduating this summer, first of all – congratulations. You’ve put in the work, made it through the all-nighters and deadlines, and now you’re stepping into a job market that’s more competitive and unpredictable than ever.
It’s natural to wonder: Was it worth it? With growing headlines about graduates in low-paid jobs or struggling to find work at all, it’s easy to feel uncertain. But the answer isn’t as straightforward as the media might suggest.
Degrees Still Pay Off, But With Conditions
Ian Stewart, Chief Economist at Deloitte UK, recently highlighted this issue in his Monday Briefing, and he laid out some key facts that graduates should keep in mind.
Yes, having a degree still gives you an edge. On average, UK graduates earn significantly more over their lifetimes than non-graduates. They’re more likely to be in work, and more likely to continue working later into life. In fact, a 2020 study by the Institute for Fiscal Studies (IFS) showed that, even after accounting for the cost of studying, graduates earn around 20% more over their lifetime.
But that average hides some important details, and that’s where things get real.
Subject and University Choice: The Difference Makers
The biggest takeaway? Not all degrees are equal.
According to the same IFS research, your choice of subject can dramatically impact your financial return. Male graduates in creative arts, for example, are actually estimated to earn £169,000 less over their lifetime than if they hadn’t gone to university at all. In contrast, medical graduates can earn more than £1 million extra over their careers.
Where you study matters too. Graduates from Russell Group universities, the UK’s top institutions, earn significantly more than those from less selective universities. Over a lifetime, male graduates from these top 34 universities earn seven times more than those from the bottom tier.
Even your final grade plays a role. In subjects like law and economics, graduating with a 2:1 rather than a 2:2 can increase your earning potential by around 15%.
In short: what you study, where you study, and how well you do all matter more than ever.
The Graduate Premium Is Shrinking
While a degree still offers a major advantage overall, the graduate premium – the difference in earnings between graduates and non-graduates – is getting smaller.
For graduates aged 21–30, that premium has shrunk by a third since 2007. Worse still, median graduate pay in real terms actually dropped by 9% over that same period. More people than ever are going to university, nearly 50% of 17–30-year-olds, and that’s led to a surge in competition.
Add to that slower growth in graduate jobs, rising minimum wages, and squeezed public sector pay, and it’s clear why more graduates today are finding themselves in roles that don’t require a degree.
One worrying stat: in 2024, businesses received an average of 140 applications for each graduate role – the highest number on record.
Making Smart Moves in a Tough Market
This might sound disheartening, but here’s what it means for you: the value of your degree hasn’t disappeared, it’s just become more conditional.
Your subject, your university, and your degree classification are now critical in determining your career path. The competition is intense, yes – but being strategic, proactive, and informed can still give you a real advantage.
What’s missing for many graduates is guidance, someone to help translate your degree into a meaningful career. That’s where we come in.
Start Strong with Maxwell Bond
At Maxwell Bond, we help graduates bridge the gap between university and their first job. We work with some of the UK’s most exciting businesses in tech, digital, and transformation – and we know what employers are looking for in early-career talent.
Whether you're unsure how to position your degree, need advice on interview prep, or just want to get your foot in the door, we’re here to help you take that next step with confidence.
