Are Degrees Losing Their Value? The Changing Reality for Australian Graduates

For decades, a university degree was seen as the golden ticket to career success, stable employment, and higher earnings. But new research suggests the promise of a degree isn’t as strong as it once was. Across Australia, graduates are finding it harder to secure jobs in their chosen fields and are often earning less than previous cohorts.

A Tougher Market for New Graduates

Recent studies show that the graduate job market has become increasingly competitive. While more Australians than ever are completing university, the number of entry-level roles has not kept pace. This has led to a growing number of graduates working in roles that don’t require a degree or are only loosely related to their field of study.

In some industries, particularly arts, humanities, and generalist degrees, starting salaries are stagnating or declining. Many graduates are forced to accept casual, contract, or part-time roles, delaying the stability and income that higher education was expected to secure.

Declining Graduate Earnings

Data highlights a concerning trend:

• Graduate salaries in several fields have flattened or fallen in real terms.

• The wage gap between degree-holders and workers without tertiary education is narrowing in some industries.

• Entry-level pay often fails to keep pace with the rising cost of living, leaving new graduates under financial strain despite years of study and student debt.

Is University Still Worth It?

This shift has sparked debate about the value of degrees. While professions such as medicine, engineering, and law still offer strong employment prospects and higher-than-average salaries, other fields face oversupply and weaker demand.

Many young Australians are now weighing whether vocational training, apprenticeships, or micro-credentials could provide a more direct — and affordable — path into the workforce. Employers, too, are increasingly focusing on skills and experience over formal qualifications, adding pressure to the traditional university model.

The Bigger Picture

Despite the challenges, university graduates overall still earn more across their lifetime than those without tertiary qualifications. Degrees continue to offer long-term benefits, particularly in industries with professional licensing requirements. However, the short-term outlook for many graduates is less promising than it was a generation ago.

What Graduates Can Do

To navigate this new reality, graduates are being encouraged to:

• Build work experience early through internships and volunteering.

• Focus on developing transferable skills such as digital literacy, communication, and problem-solving.

• Consider postgraduate study strategically, in fields where further qualifications significantly boost job prospects.

• Stay open to non-linear career paths, including contract roles, startups, and international opportunities.

A degree is no longer a guaranteed pathway to high wages and secure work. While higher education still holds value, graduates must combine qualifications with practical skills, adaptability, and a proactive approach to career building in order to thrive in today’s job market.