Apprentices finish education $200k better off than uni graduates: research

Tossing up whether to go to uni or do an apprenticeship? New research has found a compelling reason to go down a particular path.

Apprentices are up to $200,000 better off than their university counterparts by the time they finish their qualification.

As worker shortages push salaries higher and inflation causes higher education debts to soar, research from school leaver service Year13 reveals a carpentry apprentice will be $202,327 better off than a University of Sydney arts student by the time both finish their education.

The research coincides with calls for more young people to choose vocational career paths for stronger employment outcomes, with a quarter of unemployed Aussies now holding a degree.

“A lot of young people choose (to go to) university believing a tertiary qualification is a prerequisite to a successful career but things have changed,’’ Year13 co-founder Saxon Phipps says.

“While money alone shouldn’t be the sole determinant for what you do after school, we are living through a time of high inflation and high cost of living.

“So (the financial implications of a university education) is the sort of information that should be put on the table to help young people make their post-school decisions.’’

A carpentry apprentice will be substantially better off financially than a University of Sydney arts student by the time both finish their education, new research shows.

Golden ticket

Young people – and, just as crucially, their parents – need better awareness of the opportunities available through vocational education.

This is the view of Helen Robb-Lacey, chief executive of training provider Endota Wellness College, who says the ability to earn while you learn is a huge incentive. Superior employment outcomes after obtaining a qualification are also key, she adds.

She says more than two in five of her students are employed before even finishing their beauty studies, and all Endota Wellness College students find work immediately after graduation.

For those unsure what direction to take after school, vocational education offers young people the chance to experience a particular work environment and then specialise after discovering their niche, she says.

“We need to show young people that there are other career opportunities for them rather than just the university trajectory,’’ Robb-Lacey says.

“(Vocational education) is like the Willy Wonka golden ticket – there’s just so many varied options and all of our students are in high demand (after graduation).

“In the wellness area, for example, the opportunities are incredibly vast – there’s high demand for remedial massage therapists, and for those specialising in facials or eyebrows and eyelashes and tanning or you can pathway into areas like dermal therapy or Chinese medicine.

“There are also opportunities in spa management for those who are interested in business and leadership.”

Margaret Towse is “making good money” in the beauty industry.

‘University isn’t everything’

Margaret Towse, 23, always knew a university education was not for her. But, even still, the pressure from her school to achieve a high ATAR was so much that she dropped out before finishing Year 12.

Towse went on to work a variety of jobs, ranging from retail to logistics and data entry, before following her passions and enrolling in a Diploma of Beauty.

Before graduating, she opened her own salon, Beauty Bar Artistry, specialising in brows, lashes and waxing. After gaining her qualification in November, she also started work as a host with Endota Wellness College.

“University isn’t everything,” says Towse, whose business has become so popular she is considering reducing her hours with Endota.

“Some of my friends that did go to uni have only just finished and they’re looking for jobs but they have to start off at the lower end of the (income) spectrum.

“But I’m already making good money. A lot of people told me I would never make any money in beauty but it’s a big industry and there’s so many different opportunities and it’s … a good income.”

No degree necessary

A large number of job vacancies that don’t require a degree exist across a range of industries, Workskil Australia chief executive Nicole Dwyer says.

“Many of these positions provide the opportunity for on-the-job training and future career development,” she says.

“Apprenticeships and traineeships, for example, are a great way for young people to get their start and earn while they learn a highly sought-after trade.”

THE COST OF LEARNING

University of Sydney arts degree fees:

Year 1 - $14,630

Year 2 - $14,630

Year 3 - $14,630

Total - $43,890

Carpentry apprentice earnings:

Year 1 - $31,659

Year 2 - $36,551

Year 3 - $41,444

Year 4 - $48,783

Total - $158,437

Source: Year13