Graduating from university can give you a significant income boost, averaging 34% more within three years. However, the rising cost of obtaining a degree is causing many students, particularly women, to reconsider their choices. While recent graduates earned around $65,800 in 2021, their income had increased to $88,100 by 2024. This earnings surge is encouraging, but it is tempered by growing financial barriers and persistent pay equity issues.
University education continues to be a reliable pathway to improved earning potential. A nationwide survey tracking graduate outcomes found that those with postgraduate master’s degrees also benefited, with their salaries rising from $100,000 shortly after graduation to $122,800 after three years. Interestingly, the percentage growth was greater among bachelor’s graduates. At the same time, the cost of earning a degree, especially in fields such as arts or social sciences, now reaches at least $50,000. This is discouraging many from pursuing higher education.
Alongside financial concerns, universities are facing increasing criticism regarding their relevance to real-world employment. A commissioned study showed that nearly half of Australians aged 25 to 34 believe that universities are not adequately preparing students for the workforce. Many think there is too much emphasis on research instead of teaching quality and student experience. These views may be weakening public trust in university leadership, as 40% of respondents believe executives prioritise revenue and rankings rather than education.
Gender pay disparities also remain an issue. Although male and female graduates have similar chances of securing full-time jobs at first, income gaps appear quickly and continue to grow. Male undergraduates earned $3,000 more than their female counterparts shortly after graduation, a gap that widened to $7,000 over the next three years. At the postgraduate level, the long-term discrepancy reached $15,700. Degrees in medicine and dentistry continue to lead in terms of salaries and job outcomes, though generalist degrees have shown stronger income growth over time, gradually narrowing the pay gap across disciplines.
While a university degree still offers clear long-term financial benefits, rising costs, ongoing gender inequality and declining public confidence in institutional leadership point to the need for meaningful changes in how higher education serves students.
