Graduate salaries are lower today in real terms than in 2001 and are heading towards parity with the national minimum wage, according to a report publ

Lowest graduate salaries ‘on a par with minimum wage’

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2025-01-04 19:30:04

Graduate salaries are lower today in real terms than in 2001 and are heading towards parity with the national minimum wage, according to a report published this week.

The Resolution Foundation found that the median graduate salary in 2023 was £34,200, compared with the equivalent of £35,600 almost 25 years ago.

While graduate salaries have fallen, the analysis shows that the minimum wage in real terms — meaning what that money can buy — has increased by nearly 60 per cent to £21,700 over the same period.

This means that in 2001, the average graduate was earning 2.5 times more than someone doing the lowest-paid work but is now only earning 1.6 times as much.

The shrinking gap between graduate pay and the minimum wage has raised concerns that university may be a waste of money for many students. Tuition fees for a typical three-year course are £27,750 and will rise to £28,605 in the autumn.

The Resolution Foundation’s Labour Market Outlook report notes that there is now barely any difference between the lowest earning graduates and those on the minimum wage.