Graduate outcomes: What the latest data reveals about employment, pay and job quality

From employment and salaries to job quality and satisfaction, the data provides a timely reminder of the continued value of a degree in a challenging labour market. Head of Analysis Jovan Luzajic and Policy Advisor Dr Shimaa Elkomy explore what the findings tell us about outcomes for recent graduates outcomes, and why it matters for students, universities and the wider economy.

The latest HESA graduate outcomes survey is based on responses from 320,460 graduates and looks at what they are doing 15 months after completing their studies, so for the vast majority their activity in autumn 2024. This showed: 

• The proportion of UK graduates in full-time employment fell slightly for those finishing in 2022/23 compared to the previous year (from 61% to 59%), however this was higher than the levels reported between 2018/19 and 2019/20 (56%), and substantially higher that the wider youth full-time employment rate of 51% in early 2025
• The unemployment rate for graduates increased very slightly to 6% (from 5%), driven by an increase in unemployment rate for non-UK students from 9% to 11%. This was substantially lower than the youth unemployment rate for all 16-24 year olds including non-graduates which stood at 14.3% in early 2025.
• The proportion of graduates from UK providers going into further full-time study has continued to decline from 8% in 2019/20 to 5% in 2023/24. 

The HESA data is based on a survey of graduates only. To consider the benefit and value of a degree it is important that we compare outcomes with those who do not attend university. Recent government data releases from the Longitudinal Education Outcomes (LEO) dataset and Graduate Lamour Market Statistics (GLMS) include both graduates and non-graduates. Using these datasets, we can make more direct comparisons, and confirm that graduates enjoy higher employment rates, significantly better pay and growth in pay, and greater access to high-skilled jobs compared to their non-graduate peers. 

UUK analysis of government data looking at earnings of graduates, how these change over time, and how they compare to those who could have gone to university but didn’t, found:  

• By age 31, graduates earn on average a third more than non-graduates who could have gone to university.
• Graduate earnings increase at a faster rate than those of non-graduates. Between the ages of 23 and 31, average earnings grow by 72% for graduates compared to 31% for non-graduates.

From the 2007 financial crisis to the COVID-19 pandemic, and through the ongoing impacts of the Russia–Ukraine war and the cost-of-living crisis, graduates and postgraduates have consistently enjoyed higher employability than non-graduates. Despite economic shocks and uncertainty, the data from 2007 to 2024 shows a clear and sustained advantage for those with higher education. 

Among young adults (ages 21–30), graduate and postgraduate employment rates are above 86%, while non-graduate employment has declined. Unemployment rates have consistently been lower for graduates and postgraduates compared to non-graduates, even during economic downturns such as the 2008–2009 financial crisis and the 2020 pandemic. In 2024, the unemployment rate for graduates (5.5%) and postgraduates (3.5%) remains well below that of non-graduates (8.1%), underscoring the employment advantage conferred by higher education.

Inactivity rates, which show the share of those who are not employed and not actively searching for a job, also remain significantly lower for younger graduates and postgraduates compared to non-graduates in the same age group, with only 8.4% of graduates and 7% of postgraduates inactive in 2024 versus 23.6% of non-graduates as shown in chart 5. This persistent gap highlights the stronger labour market attachment and long-term employment potential associated with higher education qualifications.

Latest government data shows that not only are graduates more likely to be employed, but also far more likely to be in high-skilled roles such as managerial, professional, and technical occupations, compared to non-graduates. In 2024, 60% of 21–30-year-old graduates were in high-skilled employment, compared to 72% for postgraduates and 21.5% for non-graduates. 

While policy discussions often focus on employment and earnings, the Graduate Outcomes survey reminds us that first-degree graduates judge their success through a broader lens: 

• 92% of graduates in employment or further study say their current activity fits with their future plans.
• 77% of those in employment or further study felt they were using what they learned during their degree (14% disagreed). This fell to 64% when non work or study activity is included (e.g. those who were unemployed, caring or travelling)
• 92% feel their work or study is meaningful, this fell to 83% when non work or study activity was included.

These statistics show that context matters and so does how we define success. Graduates are not just more likely to be in work, they are also likely to be in purposeful, supportive roles that align with their ambitions. While salary is one indicator of success, evidence shows that job quality matters just as much. Graduates consistently report high levels of satisfaction, meaning, and a strong sense of future direction in their roles. Even where pay varies, those in high-skilled jobs are more likely to feel fulfilled, valued, and well supported. Recent work has captured other crucial dimensions of non-financial job quality, including: 

• Job security and pay satisfaction
• Mental health and wellbeing at work
• Opportunities for career progression
• Use of acquired skills
• Work–life balance
• Supportive social and working environments 

Understanding graduate success means looking at these qualitative measures alongside earnings and employment data. As debates continue about the value of higher education, it is vital we reflect this broader picture - recognising that a “good job” is about more than just a payslip.