The degrees that may not be worth the paper they're written on

Times

4 hours ago

There are many reasons to go to university, whether that be a yearning for independence, a desire for further study or, for many, the chance to have an iron-clad excuse to have a good time.
These are all worthy motivations but it's worth remembering the fundamental driver for getting a degree in the first place: the hope that in the future, you will earn more money because of that shiny certificate.
While university might once have been the golden ticket to a good career, a soaring number of graduates, an increase in what critics describe as 'Mickey Mouse' degrees and the rising threat of artificial intelligence (AI) have all made the decision more complex.
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According to the Department for Education, those who specifically study teaching as a first degree are unlikely to earn large salaries, even after a decade of working. The average salary of someone who had a degree in education and teaching was just £27,700 after 10 years — the lowest of all the subjects. The majority of teachers earn more than this, but will have studied different degrees.
Other low-return degrees included performing arts, creative arts and design, and agricultural studies. Graduates of these subjects typically failed to breach the £30,000 salary mark after 10 years.
For context, £34,300 is the median graduate earnings 10 years after graduation, according to the latest longitudinal education outcomes data from the ministry.
Victoria McLean from the career consultants City CV and Hanover said: 'It's a shame, but some of the most intellectually rich and socially vital degrees often don't convert to high salaries, at least not in the early years.
'It's not a judgment on their value, but a reflection of how these sectors are structured and funded. It's entirely possible to build a brilliant, lucrative career from these degrees, but it takes longer and demands more pivots along the way.'
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Generic or wide-reaching degrees were also unlikely to lead to six-figure careers. A degree in 'combined and general studies' typically had a starting salary of £24,100 and after a decade, this moved up to £30,700.
Oliver Sidwell from Higherin, an early careers jobs platform, said that such degrees were typically less likely to get you a degree-level job after university in the first place, so ended up leading to lower-paid jobs. He added that while degrees were still sought-after in general, this was increasingly becoming 'a more outdated view'.
The money available in any given sector won't matter, however, if the jobs are likely to be done by AI in the future.
Graduate jobs are already among the most affected by the advent of artificial intelligence software. The recruitment firm Adzuna found that the number of entry-level roles had fallen 32 per cent since the launch of ChatGPT in November 2022.
David Morel from the London firm Tiger Recruitment said: 'We are already beginning to see a decline in entry-level job opportunities. Many sectors are cutting costs, and businesses are increasingly turning to software like AI to perform tasks that were once handled by less qualified employees.'
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Data entry and content writing roles have been the first to go, while fields such as proofreading and customer service are now beginning to be automated.
According to Lacey Kaelani, who has been tracking AI threats through her jobs platform Metaintro, there has been a drop in roles that require business graduates because AI can handle basic business analysis and generate reports.
Kaelani said: 'There is also a 31 per cent decline in entry-level roles in communications roles, and we are seeing 25 per cent fewer 'economic analyst' graduate positions. In all industries, those who can interpret AI and combine AI with expertise and strategic thinking are managing to buck the trend.'
Another way of judging AI risks is to look at AI occupational exposure (AIOE) scores — the higher the score, the more replaceable occupations are by AI.
According to the Department for Education, industries such as sport, leisure and recreation, engineering and sociology are among the least exposed. Economics, maths and accounting are among the most.
Vicky Harvey from the University of Salford said that the pace of change was rapid and so the true impact on jobs was unknown. But she added that many universities were integrating AI into their teaching and research to help students understand and adapt to the evolving landscape.
If you want to look at the potential return on investment of different degrees, you need to first understand the initial cost. The average student debt built up by those studying in England is now £53,000, and this is likely to increase as the cap on fees for full-time students will rise to £9,535 a year from September, up from £9,250.
However, most students never pay back their loans in full. Instead, those thinking about university should look at the repayment system and how it will affect their take-home pay in the future.
Those starting university this year will be on the Plan 5 repayment system. This means that 9 per cent of earnings above £25,000 will go towards paying back their loan. If they have not repaid it within 40 years, the debt is cancelled.
It gives a basic-rate taxpayer with a salary above that threshold a marginal tax rate of 37 per cent. A higher-rate taxpayer pays a marginal rate of 51 per cent.
While the system can mean that high earners will begin to feel their student loan repayments in their pay cheque — someone earning £100,000 would pay £6,750 a year or £563 a month, for instance — those with smaller salaries are somewhat protected. Those on the average graduate salary of £34,300 a decade after graduation would pay just £837 a year, or £70 a month.
McLean added: 'Before choosing a course, I would urge students to ask: what roles do I want to target? What do they pay? What's the outlook for three or five years? And is there a high enough salary to justify the debt?
'You don't need to have it all figured out by 18, but that doesn't mean you can't think strategically. This is one of the biggest investments you will make.'