We crunched the numbers on what drives how much people earn and the results are in.
There has been a lot of press highlighting the big tech lay-off and the impact of interest rates on the labour market. So we expected to find a significant fall in incomes across our portfolio of thousands of graduates. But that wasn’t the case.
Experience is a much stronger driver of your income than the state of the economy if you are employed.
For skilled workers, every month you work your likelihood of an increased salary goes up, by an average of £400 per month in the UK (~£5k p.a.). This is only loosely correlated to the economy.
The bad news is that if you are unemployed, you are much more reliant on the state of the economy. Graduates of tech, sales and business / law in 2023 had to wait about 50% longer to find employment than those in 2021.
This analysis was from thousands of borrowers who work at over 600 employers predominantly in the UK, with qualifications varying from MBAs to entry level software developer courses and includes people employed at Consultancies e.g. Accenture, Big Tech e.g. Apple / Google / AWS, the Public Sector e.g. HMRC, the FCA and BBC and everything in between.
This was posted on LinkedIn and one commenter had a great insight. That economic downturns are likely to have an outsized impact on mothers seeking a return to the workforce. Given that this group are more likely to be seeking a return to the workforce than the population in general.
