Gender pay gap hits graduates from day one, figures reveal

-

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.

HRreview Logo

Get our essential weekday HR news and updates.

This field is for validation purposes and should be left unchanged.
Keep up with the latest in HR...
This field is hidden when viewing the form
This field is hidden when viewing the form
Optin_date
This field is hidden when viewing the form

 

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.

William Furney is a Managing Editor at Black and White Trading Ltd based in Kingston upon Hull, UK. He is a prolific author and contributor at Workplace Wellbeing Professional, with over 127 published posts covering HR, employee engagement, and workplace wellbeing topics. His writing focuses on contemporary employment issues including pension schemes, employee health, financial struggles affecting workers, and broader workplace trends.

Latest news

Helen Wada: Why engagement initiatives fail without human-centric leadership

Workforce engagement has become a hot topic across the boardroom and beyond, particularly as hybrid working practices have become the norm.

Recruiters warned to move beyond ‘post and pray’ as passive talent overlooked

Employers risk missing most candidates by relying on job boards as hiring methods struggle to deliver quality applicants.

Employment tribunal roundup: Appeal fairness, dismissal reasoning, discrimination tests and religious belief clarified

Decisions examine appeal failures, dismissal reasoning, discrimination claims and religious belief, offering practical guidance on fairness, causation and proportionality.

Fears of AI cheating in hiring ‘overblown’ as employers urged to rethink assessments

Employers may be overstating concerns about AI misuse in recruitment as evidence of candidate manipulation remains limited.
- Advertisement -

More employees use workplace health benefits, but barriers still limit access

Many workers struggle to access employer healthcare support due to confusion, costs and unclear processes.

Gender pay gap in tech widens to nine-year high as AI roles drive salaries

Women in IT earn less as salaries rise faster in male-dominated AI and cybersecurity roles, widening pay differences.

Must read

Armin Hopp: How to drive corporate training with big learner data

Implementing big data training could boost global workforce development.

Brendan Street: Why it’s time employers learn to listen this Time to Talk Day

Some valuable advice on how employers can learn to listen this Time to Talk Day.
- Advertisement -

You might also likeRELATED
Recommended to you