Graduate Earnings (Hansard, 14 February 2003)

§ Mr. George Howarth
To ask the Secretary of State for Education and Skills what estimate he has made of the average gross earnings per year of students(a) immediately following graduation, (b) five years after graduation, (c) 10 years after graduation, 155W (d) 20 years after graduation and (e) 25 years after graduation for each university and higher education institution. [94701]

§ Margaret Hodge
Information on annual graduate earnings over a lifetime is not available in the requested format, and estimated lifetime profiles at particular points in time are constrained by limitations of existing datasets.
Annual earnings by age are estimated using gross weekly earnings from the Labour Force Survey (LFS). Estimating annual from weekly earnings is not ideal but the LFS allows us to provide the best available estimate of annual earnings by qualification. Earnings at particular ages are the best proxy we have of what young graduates might earn after various periods in the labour market, assuming that labour market conditions remain stable over time. The estimates should therefore be treated with caution. The table shows the estimated annual average earnings of graduates at various ages. The figures relate to graduates whose highest qualification is a first degree.

Table 1: Estimated annual average earnings of first degree graduates by age band

Age band Estimated annual earnings(£)

21–24 18,200

25–29 24,440

30–39 33,280

40–49 36,400

50–59 34,320

Notes:
1. Estimates are based on gross weekly earnings in main job, for graduates who are in full-time employment.
2. Annual earnings are derived by multiplying weekly earnings, rounded to the nearest £10, by 52 weeks, and may therefore be upwardly biased.
3. A few individuals who graduated at the age of 20 will be included in the 21–24 age band.
Source:
Labour Force Survey, spring 2002, GB

§ Ian Lucas
To ask the Secretary of State for Education and Skills what the relative distribution of the earnings of graduates is, broken down into multiples of £5,000.[94785]

§ Margaret Hodge
The information is not available directly in the requested format so has been estimated from available data. Annual earnings are estimated using gross weekly earnings from the Labour Force Survey (LFS). Estimating annual from weekly earnings is not ideal but the LFS allows us to provide the best available estimate of annual earnings by qualification. The derived distribution of annual earnings should therefore be treated with caution. The table shows the distribution of estimated annual earnings for all individuals whose highest qualification is a first-degree.

Table 1 Estimated distribution of annual earnings of first degree graduates

Estimated annual earnings (£) Percentage of graduates

Up to 9,999 2.3

10,000–14,999 9.9

15,000–19,999 18.6

20,000–24,999 17.7

25,000–29,999 14.4

30,000–34,999 10.8

156W

Table 1 Estimated distribution of annual earnings of first degree graduates

Estimated annual earnings (£) Percentage of graduates

35,000-39,999 7.4

40,000-44,999 6.0

45,000-49,999 3.8

50,000-54,999 1.9

55,000+ 7.1

Total 100.0

Note:
Estimates are based on gross weekly earnings in main job, for graduates who are in full-time
The figures are derived from the distribution of weekly equivalent earnings associated with the annual earnings bands, on the assumption that individuals work 52 weeks per year.
Source:
Labour Force Survey, Spring 2002, GB

Table 1: Estimated annual average earnings of first degree graduates by age band
Age band	Estimated annual earnings(£)
21–24	18,200
25–29	24,440
30–39	33,280
40–49	36,400
50–59	34,320

Table 1 Estimated distribution of annual earnings of first degree graduates
Estimated annual earnings (£)	Percentage of graduates
Up to 9,999	2.3
10,000–14,999	9.9
15,000–19,999	18.6
20,000–24,999	17.7
25,000–29,999	14.4
30,000–34,999	10.8