A new analysis of earnings by university degree subject has placed Britain at the top of the global salary charts for STEM graduates. The data, compiled by the Organisation for Economic Co-operation and Development (OECD), reveals that British graduates in science, technology, engineering and mathematics earn on average 45 per cent more than peers in other developed economies.
The findings underscore the premium placed on technical skills in the British labour market, but also raise questions about the wider economic consequences of a polarised skills base. While the returns to STEM degrees have soared over the past decade, the financial benefits of humanities and social science qualifications have stagnated or declined in real terms.
The OECD report, released this morning, drew on tax records and graduate surveys from 28 countries. It found that British STEM graduates aged 25 to 34 earn a median salary of £48,000, compared with an OECD average of £33,000. The gap widens further at the top of the distribution: the top 10 per cent of British STEM earners command salaries above £120,000, a figure unmatched in any other country.
Ministers were quick to claim credit for the trend, pointing to government investments in university research and apprenticeship schemes. The Business Secretary said the data demonstrated the success of efforts to align higher education with industrial strategy. But critics warned that the earnings gap between STEM and non-STEM graduates risks creating a two-tier society, where arts and social science learners face declining economic prospects.
Universities UK, the sector’s main lobby group, said the findings vindicated the focus on STEM but urged caution against narrowing the purpose of higher education. “Degrees in law, economics and modern languages continue to produce strong returns for many graduates,” a spokesman said. “The data should not be used to suggest that only STEM subjects matter.”
The report also highlighted stark gender and regional disparities. Female STEM graduates in Britain earn 18 per cent less than their male counterparts on average, a gap that widens with age. And while graduates based in London and the South East earn well above the national average, those in the North and the Midlands earn significantly less.
The OECD analysts noted that Britain’s high STEM premium reflects a combination of strong labour demand, world-class universities and a flexible wage-setting system. However, they also cautioned that the premium could attract excessive numbers of students into STEM fields, potentially leading to a skills oversupply in the medium term. The report will be pored over by policymakers as they debate the future of university funding and the role of technical education in driving productivity.
For the thousands of graduates who undertook degrees in STEM disciplines, today’s numbers confirm the financial logic of their choices. But for the broader economy, the concentration of earnings in a handful of fields represents both an opportunity and a warning.
