A new study reveals that graduate salaries have stagnated in real terms, while minimum wage earnings have significantly increased, leading to a shrinking gap between the two.
Graduates are earning less money in real terms than before the pandemic - while the amount taken home by those on the minimum wage has soared, a study has found. Average annual salaries for a typical worker in Britain who has left higher education in the last five years dropped in real terms by 4 per cent between 2001 and 2023. The figure now stands at just over £34,000 and is also below a high reached during the 2008 financial crisis, according to research by the Resolution Foundation.
It comes as the salary earned by a full-time worker on the minimum wage increased by nearly 60 per cent over the period of 2001 to 2023 to more than £21,700. This means the gap between the minimum wage and average graduate salaries has gone down in today's money from £22,000 to £12,400, reported the Daily Telegraph. The think tank's report, entitled 'Labour Market Outlook Q4 2024', also found the gap has nearly gone for those leaving university who go into the lowest-paying jobs. In 2001, a graduate in the bottom 10 per cent of graduate earners got an average salary worth 82 per cent more than someone taking home the minimum wage. But by 2023 the difference between the two had plummeted to just 11 per cent - which represents a fall in today's money from about £11,200 to £2,350. The purple lines show how graduate salaries have stagnated in real terms, while the yellow line shows how minimum wage workers are doing far better than before the financial crisis Graduates are defined in the study as those leaving education with a qualification of at least Level 4, which is equivalent to the first year of a university degree. The report's authors Nye Cominetti and Hannah Slaughter said graduate salaries had stagnated while the minimum wage had risen. They wrote: 'These differing trends have led to convergence between the minimum wage and entry-level graduate salarie
Graduate Salaries Minimum Wage Economic Inequality Education Labor Market
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