Apprentices will earn more than university students, says UK study

The UK’s best apprentices can expect to earn more over the course of their working lives than most undergraduates, according to a new study.

The study, published by the Sutton Trust, estimates that apprentices with the highest level qualifications can expect to earn around £1.5 million over the course of their careers—£50,000 more than someone with a degree from a university outside of the Russell Group of leading institutions.

Someone with a degree from a Russell Group university can expect to earn £1.6 million, according to the study. These calculations factor in the costs of going to university relative to those of undertaking an apprenticeship.

Sutton Trust chairman Peter Lampl commented that: “Today’s report shows that the best apprenticeships offer similar financial security as an undergraduate degree. Although the government’s target for apprenticeships to 2020 is three million, we’ve only had 30,000 higher apprenticeships in the last two years. We need more good apprenticeships to offer genuine alternatives to A-levels and degrees. We also need to tackle the ingrained negative culture of apprenticeships that exists amongst teachers, parents and young people alike.”

Meanwhile, a separate report from the Joseph Rowntree Foundation calls for better awareness of apprenticeships as one of a series of measures to give young people from ethnic minorities in the UK a route out of poverty and into the labor market.

IZA World of Labor author Werner Eichhorst has written about the effectiveness of vocational training in addressing youth unemployment. He argues that vocational training cannot be seen as a “quick fix”, and that: “Structural reforms to revive the economy and reduce entry barriers to employment are also needed. Since most countries already have some form of vocational training program they could start with existing elements to bring vocational education and training closer to employer and labor market needs.”

Robert Lerman has also written for us about the benefits to firms of investing in apprenticeships. Noting that apprenticeships are usually profitable, he writes: “By providing firms with information on economic returns, by helping them set up apprenticeships, and by funding off-site training, policymakers can promote the expansion of effective career training and increased worker earnings with only modest public expenditures.”

The Sutton Trust report, Levels of Success: The Potential of UK Apprenticeships, can be downloaded here.

Related articles:
Does vocational training help young people find a (good) job? by Werner Eichhorst
Do firms benefit from apprenticeship investments? by Robert Lerman
Youth labor market interventions by Jochen Kluve

Find more IZA World of Labor articles about vocational education, training skills, and lifelong learning here