Data released today by the Office for National Statistics show that the worst paid 20 per cent of graduates had lower earnings than those who left school with qualifications at 18.
At the same time other Government figures showed almost a million young people are not in school, college or work.
One in six 16 to 24-year-olds are now considered "Neet" – not in education, employment or training, according to figures published by the Department for Education (DFE).
The new figures come just a week after Government figures showed that the youth unemployment rate (for 16 to 24-year-olds) has soared to 20.2 per cent, up 0.2 percentage points from the three months to March.
Skills minister John Hayes insisted: "We're taking action to get our young people into work, helping restore a sense of responsibility and pride in our communities.
"Having built the largest apprenticeships programme our country has seen, we'll now do more to get young people who lack basic skills up to speed."
Percentage pay gap between GCSE holders and other qualifications
But critics claimed the government needed to do more to support youngsters.
“These figures confirm that the Government is not doing enough to support young people," said Dalia Ben-Galim of the Institute of Public Policy Research think-tank.
"While the planned expansion of apprenticeships is welcome, it is clearly not enough and the Government needs to provide more places in Further Education colleges and a job guarantee for every young person out of work for more than a year.”
Other statistics from the ONS show fifteen per cent of graduates also earned less than those who left school at 16 with only GCSEs or equivalent qualifications.
However, overall employees educated to degree level earned 85 per cent more on average than those educated to GCSE level.
Increase in percentage of population with degrees
On average, those educated up to GCSE level were paid an average of £8.68 while those who held a degree earned on average of £16.10 an hour – nearly double.
Those with no qualifications earned £6.93 on average.
Nicola Dandridge, Chief Executive of Universities UK, said: “Looking at all graduates, degree holders continue to earn considerably more than non-graduates over a working lifetime, and are also more likely to be in employment.
“Despite the exponential growth in the number people gaining a degree since 1993, there still remains a considerable pay premium for graduates.
“The recession has been very hard for the whole jobs market, including graduates, but there are signs that things are improving. A recent survey by the Association of Graduate Recruiters showed that graduate vacancies are predicted to increase by 2.6 per cent this year and that there had been a boost in starting salaries for the first time in two years.
“UK graduates are still in a better position to succeed and remain highly valued by employers, here and overseas.”
taken from http://www.telegraph.co.uk/education/educationnews/8720127/One-in-five-graduates-earn-less-than-someone-educated-to-A-level-standard.html
Percentage pay gap between GCSE holders and other qualifications
But critics claimed the government needed to do more to support youngsters.
“These figures confirm that the Government is not doing enough to support young people," said Dalia Ben-Galim of the Institute of Public Policy Research think-tank.
"While the planned expansion of apprenticeships is welcome, it is clearly not enough and the Government needs to provide more places in Further Education colleges and a job guarantee for every young person out of work for more than a year.”
Other statistics from the ONS show fifteen per cent of graduates also earned less than those who left school at 16 with only GCSEs or equivalent qualifications.
However, overall employees educated to degree level earned 85 per cent more on average than those educated to GCSE level.
Increase in percentage of population with degrees
On average, those educated up to GCSE level were paid an average of £8.68 while those who held a degree earned on average of £16.10 an hour – nearly double.
Those with no qualifications earned £6.93 on average.
Nicola Dandridge, Chief Executive of Universities UK, said: “Looking at all graduates, degree holders continue to earn considerably more than non-graduates over a working lifetime, and are also more likely to be in employment.
“Despite the exponential growth in the number people gaining a degree since 1993, there still remains a considerable pay premium for graduates.
“The recession has been very hard for the whole jobs market, including graduates, but there are signs that things are improving. A recent survey by the Association of Graduate Recruiters showed that graduate vacancies are predicted to increase by 2.6 per cent this year and that there had been a boost in starting salaries for the first time in two years.
“UK graduates are still in a better position to succeed and remain highly valued by employers, here and overseas.”
taken from http://www.telegraph.co.uk/education/educationnews/8720127/One-in-five-graduates-earn-less-than-someone-educated-to-A-level-standard.html
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