New data shows the choices students make at school can make a difference in how much they are earning by the time they are 24 years old.
The key to earning higher wages by the age of 24 have been revealed as part of a new project that shows which young people have the highest incomes.
The work and study trends of 3.5 million students in New South Wales were tracked as part of an Australian-first data project, with the NSW Government releasing the Future Pilot Project Summary Insights report today.
It has identified close to 30,000 different pathways that young people can take from education to work, as well as factors that impact their employment and how much they are earning by the time they are 24 years old.
The full data has not yet been released by the government but is expected to be ready by mid-next year. This will eventually provide students with a visualisation tool to help them understand what subjects to chose at school and what careers it could lead them to.
The summary reveals the subjects that students choose to study in Year 10 and their academic results, can predict how much they are earning by age 24.
NSW Minister for Education and Early Childhood Learning Sarah Mitchell described the data as a “game changer” for students and parents.
“It means that you can look at the career journeys of people who studied similar subjects in high school and see what employment outcomes it led to,” she said.
NSW Minister for Skills and Tertiary Education Geoff Lee said the data found completing an apprenticeship or traineeship could increase the chance of someone earning above-minimum wages by age 24, by almost 13 percentage points.
“The data showed students who performed well in year 10, who had certain subject patterns in senior secondary school or who completed an apprenticeship and traineeship had significantly higher employment and earning prospects by age 24,” he said.
The data is part of a wider project to help students make better choices, including a comparison tool for different providers of vocational education and training (VET) courses, which is already live.
However, the data only reveals the outcomes up to the age of 24 and this can change as people get older. In particular, those who are still studying at 24 could go on to earn more than their peers once they finish their studies as they qualify for higher paying jobs.
A previous study Graduate incomes: Insights from administrative data report published on ComparED, found students in subjects such as science and mathematics, which reported lower incomes immediately after graduation, caught up to others possibly because of further study that delayed their entry to the workforce but also boosted their earning potential.
Ten years after graduating, the most highly paid graduates in 2018 were those who had studied medicine ($169,000), engineering ($112,900), dentistry ($104,800), law and paralegal studies ($99,200), computing and information systems ($95,300) and pharmacy ($89,700).
For those who are interested in choosing a job that will pay them a good wage as quickly as possible, here are the factors that can influence young people’s incomes by the time they are 24 years old.
What you do at school can make a difference
Subjects chosen in years 11 and 12, as well as how well you do academically, can be an important predictor of whether you are likely to be earning above the minimum wage by the time you are 24 years old.
Students who chose to do a human society and its environment (HSIE) specialisation had the highest chance of being employed above the minimum wage (60 per cent).
HSIE subjects include Aboriginal studies, ancient history, business studies, economics, geography, legal studies, modern history, history extension, society and culture, studies of religion I and studies of religion II.
Those who did a creative arts specialisation (plus HSIE) had the lowest chance of being employed above the minimum wage (50 per cent).
Young people who were ranked in the top 40 per cent of students during year 10 were also more likely to be employed at above-minimum wages (60 per cent chance).
Those in the bottom 20 per cent had a 51 per cent chance, while those who did not finish Year 10 had a 40 per cent chance.
The report noted that students in the top 40 per cent were also more likely to have a wider variety of options available to them and able to chose “more optimal pathways into employment”.
“For example, they are able to choose HSC subject clusters which lead to higher average salaries or undertake tertiary studies in fields of education which have higher employment chances,” the report notes.
Students who finish year 12 boosted their chance of earning above the minimum wage by 6 percentage points and they also earn around $7000 more than those who leave school early.
These students are also less likely to be unemployed and not in education or training at the age of 24.
Students who took on the highest percentage of extension units at school were also more likely to continue their university studies.
What about those who don’t finish Year 12?
Students who don’t finish high school can be just as likely to earn above minimum wage compared to year 12 completers if they enrol in vocational education and training (VET) programs in more “optimal” fields and achieve higher qualification levels.
For example, students who complete a Diploma in Human Welfare Studies and Services have higher chance of earning above the minimum wage (it provides a 6 percentage point boost) compared to those who did a Certificate I, II or III in the same training package.
Overall completing a VET course provides a 9 percentage point boost to the chances of earning above the minimum wage.
Subject choice also matters, with a much higher chance of earning above minimum wage if you do mechanical and industrial engineering (65 per cent) compared to creative arts (49 per cent).
“However, it must be noted that students who finish Year 12 are also far more likely to be studying and may not yet be earning above minimum wage at 24,” the report states.
Apprenticeships and traineeships can boost incomes
Completing an apprenticeship or traineeship results in stronger employment outcomes than other vocational and training courses, improving the chances of earning above the minimum wage by 7 percentage points to 17 percentage points.
However, this varies depending on the field of study.
Finishing an apprenticeship also boosts the chances of being employed above the minimum wage by 13 percentage points, compared to completing a course without an apprenticeship.
However, the median income is similar for those who complete an apprenticeship ($49,000) and those who do not ($46,000).
What you study at university can make a difference
The chances of earning above the minimum wage at age 24 can vary significantly depending on what field you choose.
For example, nursing graduates have a 67 per cent chance of earning over the minimum wage compared to 40 per cent for those studying creative arts.
Incomes also varied widely, with the median wage at age 24 for those doing civil engineering around $60,000, compared to $32,000 for performing arts.
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