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Gender pay gap hits graduates from day one, figures reveal

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The figures, analysed by the Financial Times, show that male graduates earn a median salary of £34,700 five years after leaving university, compared with £30,400 for women. The disparity persists across nearly all subject areas. In 29 out of 35 fields of study, men earned more than women.

The data, sourced from the Department for Education’s longitudinal education outcomes dataset, suggests that the gap cannot simply be explained by course choices. While earlier research has attributed much of the pay divide to men and women choosing different degrees, the latest analysis reveals a more complex picture. Even within identical degree subjects, men are more likely to enter higher-paid roles.

Male maths graduates, for example, commonly move into programming, where earnings five years post-graduation average £49,600. Female maths graduates, by contrast, most often become teachers, earning £34,300 on average over the same period. A similar trend is seen in architecture, where men earn £6,200 more than women on average. The most extreme case cited was psychology graduates from Durham University in 2017: five years later, male graduates were earning 64 percent more than their female counterparts.

 

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Wage gaps persist even in high-earning sectors

In traditionally higher-paying fields such as science, technology, engineering and mathematics (STEM), men continue to dominate the better-paid roles in IT and finance, while women are more likely to go into teaching or lower-paid segments of the sector. In business and management, men tend to move into finance or tech, while women are overrepresented in retail, health and social care.

This early-career gap is particularly notable because it emerges before other factors such as motherhood or career breaks are likely to influence earnings. Office for National Statistics (ONS) figures have shown that the pay gap for full-time employees under the age of 30 is comparatively small, suggesting that differences in early-career decision-making play a significant role.

Xiaowei Xu, a senior research economist at the Institute for Fiscal Studies, told the Financial Times that much of the current pay gap is concentrated at the top end of the earnings scale. This represents a reversal of historic trends, where lower-qualified roles saw the widest gaps. Now, the disparity is most visible among highly educated and skilled graduates.

Employers urged to intervene earlier

Employers are increasingly being called upon to address the roots of the gap early on, particularly during the graduate recruitment and onboarding process. The idea that graduates with the same qualifications are entering the same labour market but receiving different financial outcomes raises questions about pay transparency, career progression pathways and workplace culture.

Sheila Flavell CBE, chief operating officer at tech consultancy FDM Group, said the figures reinforced the need for targeted action. “This research shows that something must be done to tackle the gender pay gap from the very start of women’s careers. It is unacceptable that female graduates are falling behind their male peers, even when they study the same subjects.”

FDM Group’s own gender pay gap report shows a result of -1.7 percent in favour of women, supported by initiatives such as its Returners Programme and female-only tech bootcamps. “Businesses must take the lead in closing this gap by prioritising upskilling and providing the right training and career progression opportunities for women. As AI becomes more integral to business operations, empowering women with the right skills and support is crucial,” Flavell said.

Gap widens over time

The wider picture confirms that the graduate gender pay gap mirrors long-standing trends in the overall labour market. ONS data from April 2024 shows a full-time gender pay gap of 7.0 percent across all sectors. Among all employees, including part-time workers, the gap is 13.1 percent.

An analysis by data firm Prospects Academic Insights indicates the gap widens over time. One year after graduation, it stands at around 8 percent. After three years it rises to 11 percent, 15 percent by five years, and more than doubles to 31 percent at the ten-year mark.

The fact that the disparity starts so early and compounds with time reinforces the need for HR professionals, graduate employers and education providers to intervene, observers say. Transparent pay structures, support for career progression and addressing occupational segregation may all help narrow the gap.

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