Graduates in science, technology, engineering and mathematics (STEM) subjects continue to command significantly higher wages than their peers in the arts and humanities, according to the latest data from the Department for Education. The figures, released on Wednesday, show that median earnings for STEM graduates five years after graduation stand at £35,500, compared with £28,000 for non-STEM graduates. The gap has widened by 4 per cent since 2017, underscoring the premium placed on technical skills in the British labour market.
The analysis, based on tax records for over 250,000 graduates, also reveals stark variation within disciplines. Medicine and dentistry topped the rankings with median earnings of £53,000, followed by engineering and technology at £38,000. At the other end, creative arts and design graduates earned a median of £25,000. Economics graduates, classified under social sciences, earned £43,000, reflecting the high demand for quantitative skills.
Geographically, the premium is most pronounced in London and the South East, where STEM graduates earn 35 per cent more than non-STEM counterparts. In the North East, the premium falls to 18 per cent. The data also shows that female STEM graduates earn 10 per cent less than male peers, a gap that narrows but persists when controlling for subject and occupation.
The findings fuel an ongoing debate about the value of higher education and the alignment of university courses with economic needs. A spokesman for the Russell Group, which represents leading research universities, said the data “reinforces the importance of STEM subjects to the nation’s productivity”. The Department for Education has signalled it will prioritise funding for STEM courses through the new Lifelong Loan Entitlement.
Critics argue that the focus on earnings overlooks the broader societal benefits of arts and humanities. A spokesperson for the University and College Union said: “A degree is not just a ticket to a salary. The humanities foster critical thinking and cultural understanding that are vital for a healthy democracy and creative economy.”
The data, however, provides ammunition for those who advocate for greater specialisation in technical education. The prime minister has previously called for a “skills revolution” and a shift towards technical qualifications. The government’s post-16 education reforms include the introduction of T-levels in STEM-related fields.
For policymakers, the challenge remains to balance the immediate signals from the labour market with the long-term objective of a well-rounded education system. As the data makes clear, the financial incentives for students to choose STEM are substantial and growing. Whether that leads to a sustainable skills pipeline or neglects other areas of national importance is a question that will require careful navigation.
