Apprenticeships can Offer Higher Salaries and Less Debt Than University Degrees

New analysis shows that apprentices can earn higher salaries than university graduates, while avoiding the ￡45,000 in student debt.

Apprentices Outperform Graduates in Key Fields

• Apprentices in engineering earn ￡39,200 on average after 5 years, compared to ￡36,500 for engineering graduates.
• Apprentices in building and construction make ￡34,700 after 5 years, exceeding the ￡32,395 median for architecture, building and planning graduates.
• Similar trends are seen in agriculture (￡31,300 vs ￡25,000) and media/communications (￡29,400 vs ￡24,800).

Apprenticeships Provide Immediate Employment

• Over 77% of apprentices are in sustained employment one year after completing their training, compared to 62.5% of graduates.
• Apprentices earn a median salary of ￡27,700 five years after qualifying, compared to ￡29,900 for degree graduates.

Apprenticeships Avoid Student Debt

• Apprenticeships are fully funded by the government and employers, with apprentices earning a minimum wage while they learn.
• In contrast, the average graduate in England has an outstanding student loan balance of ￡45,000.

Considerations for the Long-Term

• While apprenticeship salaries may be high initially, there are concerns that they could level off over time, especially in fields impacted by automation.
• University degrees are designed to provide lifelong, transferable skills that can lead to long-term salary growth.

Demand for Apprenticeships on the Rise

• 59% of young people aged 13-17 are considering an apprenticeship, with a 62.4% year-over-year increase in search volumes.
• However, the application process is seen as more burdensome than for university, and many potential apprentices are unable to find opportunities near them.

In conclusion, the data suggests that apprenticeships can provide an attractive alternative to university, offering higher initial salaries and avoiding student debt. However, the long-term career trajectory of apprentices versus graduates remains an important consideration.

Data collected - Institute for Apprenticeships and Technical Education?