Money & Life contributors draw on their diverse range of experience to present you with insights and guidance that will help you manage your financial wellbeing, achieve your lifestyle goals and plan for your financial future.
So you’ve finished your degree - now what? With more Australians taking time to study for longer, find out if the benefits to your career and earning potential could be enough to make it worth investing in a postgraduate qualification.
Starting your working life with a sizeable HECs debt might not be the best thing about studying for a qualification in Australia, but it’s definitely not deterring young people from continuing with their studies after high school. Figures published by the Australian Bureau of Statistics in 2016 showed that nearly two thirds of Australians have completed a university degree or apprenticeship. And what this is leading to is a rise in educational standards demanded by employers in many industries.
So perhaps it’s not surprising to learn that in 2017 more than 20% of graduates went on to do additional full-time study or research instead of entering the job market straight away. And given the growth in overall postgraduate enrolments in recent years, it seems postgraduate study is also a priority for mid-career professionals too. In the five years to 2017, there has been a 46% rise in the number of people with postgraduate degrees and a 123% increase since 2006.
Resisting the wage slump
So what can postgraduate students hope to gain from continuing with their studies at uni? In terms of earning potential, wage growth for workers with postgraduate qualifications definitely puts them ahead of the pack. In the four years to 2018, wage growth in Australia has been flat, even though unemployment figures have been reasonably stable. The Wages Price Index (WPI) for the year to April 2018, for example, rose by just 2.1%. Compare this with wage growth figures for postgraduate qualified workers collected in the 2017 Graduate Outcomes Survey and the picture looks much rosier. Full-time salaries for postgraduate coursework degree holders rose by 12.5% over the three years to 2017, an average of just under 4.2% per year.
You might think this compares pretty favourably with the rest of the working population. But looking at how salaries have grown for postgraduate research degree holders in the same period, our coursework graduates might feel quite hard done by. For workers with a PhD or Masters by research, the median increase in salary over the three years was a whopping 24.8%.
The value of research skills
If these figures are anything to go by, not all postgraduate students can expect the same return on investment from their extra study. In a job market where creativity, critical thinking and problem-solving are highly valued, it seems a research degree may be giving postgraduate qualified candidates the edge for employability and earnings. A recent research project from the Australian National University (ANU) and CSIRO has backed this up by showing just how many employers are on the lookout for strong research skills. The project team created a search engine to analyse content from thousands of ads supplied by job search company SEEK. The engine found that over half the jobs advertised required research skills, even though many did not expect candidates to have a PhD.
“The PhD was originally designed to train the next generation of academics, but most graduates today find jobs outside of academia,” said Dr. Will Grant, one of the lead researchers on the project. “The machine found a large hidden job market in Australia for people with PhDs, with half of the job ads scanned specifying the need for a high level of education, including research skills.”
Making sure it all adds up
Your future earning potential is just one part of the equation when it comes to deciding whether to invest your time and money in further qualifications. Making sure you can cover living expenses while you study is important, as financial stress can become a major distraction. Taking some time to plan how you’ll finance your next career move, whether it’s studying or starting a new business, can help you enjoy the transition and have more confidence in your future.