Salaries for Economics Graduates

The increasingly competitive nature of the graduate job market means that deciding to do a degree requires more than a simple love of the subject. A degree is more commonly seen as an investment: an investment in increased future earnings.

So how wise has your decision to study economics been? There has been a lot of research into this area, with numerous surveys and results. In fact, the Institute for Fiscal Studies found that economics is the second most lucrative degree subject after using anonymised tax data and student loan records for 260,000 students up to ten years after graduation.

                                  Most lucrative degrees, 10 years on:


Degree Women’s salaries             Men’s salaries
Medicine £45,400 £55,300
Economics £38,200 £42,000
Engineering and technology £23,200 £31,200
Law £26,200 £30,100
Physical Sciences £24,800 £29,800
Education £24,400 £29,600
Architecture £22,500 £28,600
Maths and Computer science £22,000 £26,800
Business £22,000 £26,500
History and philosophy £23,200 £26,500
Social sciences £20,500 £26,200
Biological sciences £23,800 £25,200
European languages and literature  £26,400 £25,000
Linguistics and classics £23,200 £24,100
Veterinary and agriculture £18,900 £21,400
Mass communication £18,100 £19,300
Creative arts £14,500 £17,900
Base: Median annual salary    
Source: IFS and BBC

It is also interesting to note that it is estimated that around 12% of male economics graduates earned above £100,000 some ten years after graduation; by contrast, 6% of those studying medicine or law earned more than £100,000. In terms of females, it is estimated that around 9% of economics graduates earned above £100,000 some ten years after graduation; by contrast, just 1% of those studying medicine and 3% of those studying law did so (Institute for Fiscal Studies).

The Complete University Guide

So, as a percentage, you can expect to get more but how much can you expect to earn? The Complete University Guide has formulated a table which shows average earnings by degree. You’ll be pleased to hear economics comes sixth, only being beaten by Medicine, Dentistry, and three Engineering subjects. According to the Complete University guide, an economics graduate starting work in 2013 could expect to earn £26,630. The average of earnings for all 61 subjects in the survey is £22,057, earning economics graduates £4,573 above the average graduate and £10,770 over the average salary of a non-graduate. So, if that difference is constant for five years, those graduates earned around £53,850 more than a non-graduate.


The Prospects site reports that typical starting salaries for an economist can be anywhere from £25,000 to £35,000, rising to up to £40,000 with a few years’ experience. For a financial risk analyst, starting salaries are around £21,250, rising to between £29,000 and £44,000 after six years’ experience, not including bonuses. Many other typical careers are listed in the guide “What can I do with my degree in Economics?”

In Conclusion

All these pieces of research state different starting salaries for economics graduates in different sectors, yet they all highlight that economics graduates can expect to earn above average starting salaries, leading to a faster degree pay-back period and a better rate of return.

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