Study: Secondary vocational education graduates earn on average a third less than university graduates / ITech content

Contents:

• Why this study is important
• About half of vocational education graduates are officially employed
• About a third of vocational education graduates continue their education
• In their first year, vocational education graduates earn an average of 26,500 rubles
• Work experience is the main way to increase income
• Specialty is not as important for income as the field of employment
• Finding a job in your field is not easy

The HSE report "Graduates of secondary vocational education in the Russian labor market" presents important data on the state and employment prospects of this category of graduates. Sergey Roshchin, the university's First Vice-Rector, presented the results of the study at the 24th Yasinsky (April) International Scientific Conference on Economic and Social Development. The full report is available on the conference's official website. This study highlights the importance of vocational education in the context of the modern labor market and its impact on the country's economic development.

Why this study is important

This new study of graduates of secondary vocational education (SVE) is based on data from the all-Russian "Graduate Employment Monitoring" database, managed by Rostrud. This database contains information on all graduates of the education system, providing a complete picture of employment. As with our previous report on university graduates, we focus on current trends and statistics, making the study relevant for analyzing the labor market and the needs of educational institutions.

The HSE report presents an analysis of the educational and career trajectories of 2.9 million graduates who received secondary vocational education diplomas between 2017 and 2021. All data reflects their status as of the end of 2021. The study assesses the impact of education on career achievements and identifies key trends in graduate employment.

The graduate employment monitoring only records official jobs in Russia. It does not take into account other statuses, such as unemployment, informal employment, work abroad, parental leave, or military service. It should also be noted that employment in the security forces is not reflected in this database. This creates an incomplete picture of the real situation in the labor market and the work activity of graduates, which can complicate the analysis of their adaptation and success in the professional sphere.

Official monitoring is the most complete and reliable source of information on graduates. Previously, the main source of data on the employment of graduates was Rosstat, which conducts federal statistical observations. However, this approach covers only 100 thousand households across the country, which limits the completeness of the information. Official monitoring allows for obtaining more extensive and accurate data, which contributes to a better understanding of the situation in the labor market for graduates.

The researchers conducted an analysis using the most extensive available database, which allowed them to obtain significant results.

About half of SPO graduates are officially employed

A report by the National Research University Higher School of Economics indicates an extremely low level of employment among graduates of secondary vocational education (SPO). This issue requires attention, as the successful integration of graduates into the labor market is essential for economic development and improving the quality of educational programs. Measures are needed to improve connections between educational institutions and employers to increase graduates' chances of successful employment.

According to data published at the end of 2021, only 51% of college graduates who completed their studies between 2017 and 2021 were able to find formal employment. Of these, 12% combined their studies with work. Furthermore, 16% of graduates were fully focused on their studies and were unemployed.

The status of the remaining 33% of graduates, an average of 170,000 people per year, cannot be determined, according to Rostrud monitoring data. The study's authors suggest that most of these young people are young men serving in the army and women on maternity leave. Less common statuses include self-employment, inability to work due to health reasons, employment in the security forces, and informal employment. The last category is the most difficult to assess. According to various sources, the share of recent graduates engaged in informal work can vary from 7 to 14%.

According to the latest data, the employment rate among graduates with higher education is 69% for bachelor's degrees and 76% for master's and specialist degrees. Interestingly, the previously observed employment rate among graduates of secondary vocational education (SVE) was significantly higher. According to Rosstat, in 2021, more than 85% of graduates from 2016-2020 found work, while the results of a survey as part of the Monitoring of the Economy of Education showed an employment rate of 88%. The difference in these figures may be due to the fact that many respondents consider themselves employed, even if they work informally. This underscores the importance of accounting for informal employment when analyzing graduate employment data.

About a third of secondary vocational education graduates continue their education

The number of graduates who combine work and study increases every year. For example, according to data from the end of 2021, only 12% of graduates of mid-level specialist training programs worked while studying. At the same time, among graduates of 2017, this figure increased to 27%. This indicates a growing trend towards integrating professional activity and the educational process, which can have a positive impact on students' career prospects and skill development.

Graduates of colleges affiliated with universities show the greatest willingness to continue their education—45%, while among students at independent colleges, this figure is only 26%. Having an honors degree also significantly increases the likelihood of continuing education.

Although only a few secondary vocational education (SVE) graduates enroll in a university the same year they complete their studies, this does not diminish the importance of a "bypass" educational trajectory through college without taking the Unified State Exam. According to the report's authors, many SVE graduates view their diploma as a springboard for further study at a university. However, only 2% of graduates decide to obtain another secondary vocational education after college. This underscores the importance of higher education as the next stage of career growth and professional development for young people.

In the early 2020s, the secondary vocational education (SVE) system functioned not as an independent element of the educational system, but rather as a mechanism for redirecting part of the population to higher education. This opinion was expressed by Sergey Roshchin at the presentation of his report. It is important to note that this model may impact the accessibility and quality of education, as well as the career prospects of graduates.

College graduates often change both their region of study and their major when entering university. Only 3% of them are admitted to selective universities with high average Unified State Exam (USE) scores. This may be due to the fact that the university's status is no longer as important for many students, or that strong institutions lack specialized, shortened programs for graduates of secondary vocational education. It should be noted that the majority of these students study on a fee-paying and part-time basis.

In their first year, secondary vocational education graduates earn an average of 26,500 rubles.

At the end of 2021, the average salary of graduates from 2017-2021 reached 35,400 rubles per month. This indicator reflects the financial position of young professionals in the labor market and can serve as a benchmark for future students choosing a profession. The average salary of graduates depends on various factors, such as industry, region, and level of education. Analyzing income data will help better understand salary dynamics and employment prospects for new graduates.

There is a direct correlation between the year of graduation and salary levels. Graduates of 2017 with significant work experience earn higher salaries than their colleagues who just graduated in 2021. The average salary for 2017 graduates is 36,800 rubles, while graduates of 2021 earn an average of 26,500 rubles. This indicates that experience plays a key role in shaping income in the labor market.

The study showed that the average income of graduates of secondary vocational educational institutions (SVO) is higher than that of those who completed 9 grades of basic school, whose salary is 16.2 thousand rubles, and that of graduates of 11 grades of secondary school with an income of 24.9 thousand rubles. However, despite the fact that obtaining a SVO diploma provides a certain increase in wages, college graduates still significantly lag behind their colleagues with a higher education, whose income averages 55.2 thousand rubles. Thus, a SVO diploma does increase the chances of better working conditions compared to a secondary education certificate, but still does not reach the level of income of university graduates.

Work experience is the main way to increase income

At the initial stage of a career, salaries are higher for those who studied part-time or full-time. While the opposite trend is observed among university graduates, this doesn't apply to all professional groups. A notable exception is the field of "Education and Pedagogical Sciences." The average salary of entry-level teachers who completed full-time education is 30,100 rubles, compared to 28,000 rubles for those who completed part-time education, and 27,400 rubles for those who completed part-time education. Combining study and work can significantly impact graduates' income levels. Many students who earned money during their studies earn higher salaries than those who did not. However, the situation is different in the field of "Education and Pedagogical Sciences": graduates in this specialty earn 4.6% less. This may be due to the fact that future teachers often engage in unskilled work unrelated to their specialty. Such work can distract them from their studies and does not provide significant benefits in employment after graduation. It's important to remember that work experience isn't always a plus, especially if it's not relevant to the chosen profession.

In most professional fields, men have higher incomes than women, regardless of the gender predominance among students in certain fields. After completing skilled trades and office programs, women earn only 71% of the salary of their male peers, while after mid-level specialist programs, this figure rises to 80%. This highlights the existing gender pay gap, which remains relevant in today's labor market.

Wages are largely determined by a worker's professional experience. This is confirmed by statistics concerning college graduates aged 26 to 50. This category accounts for only 13.5% of all graduates, and they were excluded from the main analysis. The salaries of young professionals with secondary vocational education across all professions and specialties are significantly lower than those of more mature and experienced workers, averaging approximately 75% of their income.

Specialization is not as important for income as the field of employment

The HSE report does not provide detailed data on the salaries of graduates in various fields. Instead, it presents lists of the highest and lowest-paid professions and specializations. This limits the possibility of in-depth analysis and understanding of the financial prospects for graduates of different specializations.

The top 5 highest and lowest-paid aggregate groups of professions for graduates of skilled worker and employee training programs in 2017–2021 provides an important overview of the labor market situation. Analysis of salary data allows us to understand which professions are most in demand and financially attractive to young professionals. The highest-paid groups of professions, as a rule, include fields related to information technology, medicine, and engineering. These professions offer high wages and stability. At the same time, the lowest-paid occupational groups are often associated with low-skilled labor and less attractive working conditions. Understanding these trends can help graduates make informed choices when choosing a future profession and planning their careers.

The HSE report "Graduates of Secondary Vocational Education in the Russian Labor Market" analyzes the situation of secondary vocational education graduates in the context of the current Russian labor market. The paper examines the key trends and changes that influence the employment of this category of specialists.

Graduates of secondary vocational education play an important role in meeting the economy's need for qualified personnel. Despite being highly competitive in the labor market, many of them face difficulties finding work. The main problems are related to insufficient work experience, low wages, and limited career advancement opportunities.

The report also emphasizes the need to adapt educational programs to employer requirements. An emphasis on practical training and the development of soft skills is becoming critical to increasing the competitiveness of graduates. It is important for educational institutions to actively collaborate with businesses, creating opportunities for internships and practical training, which will allow students to better prepare for real-world work conditions.

Therefore, graduates of secondary vocational education must be prepared for the challenges of the labor market and actively develop their skills to successfully integrate into the profession.

Top 5 lowest- and highest-paid occupational groups for graduates of mid-level specialist training programs from 2017 to 2021. Salary analysis reveals significant differences between different occupations. The highest-paid occupational groups include IT specialists, engineers, and medical workers, who are in high demand in the labor market. At the same time, the lowest-paid occupations were those related to service and auxiliary work. These data highlight the importance of choosing a profession based on market trends and career opportunities. Graduates should focus on in-demand specialties to ensure a stable financial future.

The HSE report "Graduates of Secondary Vocational Education in the Russian Labor Market" provides important information on the labor market situation for graduates of secondary vocational educational institutions in Russia. The study examines key aspects such as the demand for specialists, their employability, and the professional skills necessary for a successful career. Importantly, graduates of secondary vocational education play a significant role in the country's economy, providing businesses with qualified personnel. The analysis shows that, given modern challenges such as digitalization and globalization, the need to constantly update knowledge and skills is particularly pressing. This underscores the importance of additional educational programs and courses for graduates to enable them to adapt to changing labor market demands. Thus, the report can serve as a valuable resource for educational institutions, employers, and graduates themselves striving for successful careers in their professional fields.

The report presents summarized data across key occupational groups and specialties, as well as across various economic sectors. These summaries are important indicators reflecting current trends in the labor market and the economy as a whole.

• Oddly enough, graduates in the humanities achieve the highest salaries—in culture, sports, and leisure and entertainment, they earn an average of 60,200 rubles. They also enjoy high average salaries in science and the extractive industries. Humanities graduates earn the least—only 22,000—when working in hotels and catering establishments. The average salary by industry for humanities majors is approximately 36,000 rubles. The second-highest-earning graduates are those in the "Engineering and Technical Sciences" group of professions and specialties, with an average salary of 58,800 rubles in mining. However, this industry is generally highly paid, with average salaries for secondary vocational education graduates in other specialties starting at 48,700 rubles. Engineers and technicians earn the least in the hotel and restaurant industry, an average of 21,900 rubles. The industry average is 34,000 rubles. Graduates of specialties related to healthcare and medical sciences are most successful in the "Professional, Scientific, and Technical Activities" field, earning 57,500 rubles. In the specialized field of healthcare and medical services, their average salary is 38,300 rubles. Graduates of secondary vocational schools with a degree in medicine and healthcare earn a minimum income of 19,400 rubles if they work in consumer services. The average salary is 32,000 rubles. Graduates specializing in agriculture earn an average of 51,500 rubles in mining and 19,300 rubles in the service sector. Work in this field pays an average of 33,000 rubles per month, with the average salary across industries being approximately 30,000 rubles. Graduates majoring in "Education and Pedagogical Sciences" earn 50,500 rubles in mining and 19,100 rubles in the service sector. In their specialized field of education, their average income is 35,100 rubles. On average, it comes out to about 29 thousand.
• Graduates in social sciences (including economics and law) also receive the highest salaries in mining — 50.2 thousand. They earn 17.5 thousand in the service sector. The average salary by industry does not exceed 30 thousand.
• Graduates in mathematics and natural sciences earn the most in construction — 49.3 thousand rubles. But they also have the lowest average salaries by industry — 14.7 thousand in the service sector. Their salaries are higher in other fields, so the average is almost 33 thousand rubles.
• Finally, graduates in the arts and culture earn an average of 49 thousand in mining and 18.2 thousand in the service sector. The industry average is 29,000.

Data analysis shows that wages depend not only on the specialty but also on the industry in which they work. High-paying positions are not available in all regions, prompting college graduates to seek employment opportunities elsewhere. Thus, the migration of specialists is becoming an important factor in the search for better working conditions and a decent salary.

Finding a job in your field isn't easy

Monitoring graduate employment doesn't provide clear information on whether they find work in their field. The study's authors cite Rosstat statistics, according to which less than half of graduates consider their first job to be in their field. This emphasizes that the distribution of graduates by economic sector indicates that many are engaged in activities unrelated to their education. This situation requires attention, as it reflects a mismatch between educational programs and labor market needs.

As of the end of 2021, approximately 24% of graduates from 2017–2021 found work in trade. This sector is the most popular for employment among graduates of mid-level specialist programs in the social sciences, with 43% finding their first job there. Among graduates of engineering and technical specialties, this figure is 29%, and among graduates of agricultural specialties, 28%.

The inability to find adequately paid employment in their field is the main reason for labor migration among graduates of secondary vocational educational institutions. The study shows that approximately 40% of graduates from 2017–2021, while employed at the time of the survey, were working in regions other than those where they studied. Migration flows to neighboring regions are most noticeable: graduates from the Far Eastern Federal District more often choose to move to the Siberian Federal District than to the Central Federal District.

From the perspective of regional authorities, this situation represents a serious problem. More than two-thirds of students at secondary vocational educational institutions are educated at the expense of public funds, while colleges and technical schools are financed by the constituent entities of the Russian Federation. As a result, a significant portion of the costs falls on the regions. It's common to see regions training skilled workers and specialists to address local challenges, but graduates are faced with a lack of job openings and are forced to apply their skills elsewhere. This creates an imbalance in the labor market and reduces the effectiveness of investment in education.

Investments in the education system are not matched by investments in creating jobs with competitive salaries, which limits opportunities for graduates of secondary vocational education (SVE). The authors of the report note that personnel training suffers from a lack of sectoral coordination. Since SVE institutions have been transferred to the regions, federal agencies do not have sufficient influence on the training of future specialists. Effective integration of educational programs and labor market needs is key to ensuring graduates' successful careers.

The "Professionalism" project, which was launched in test mode last year, could become a solution to pressing problems in the education system. The main goal of the program is to reduce the duration of study in colleges to two to three years, depending on the chosen profession and specialty, and to increase the practical focus of training. Importantly, employers from various sectors of the economy are actively involved in the development and implementation of educational programs. However, the impact of "Professionality" on the employment rate of college graduates will not be fully assessed until next year.

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