How Higher Education Shapes Careers: New Insights from Longitudinal Data

Jobs and Skills Australia has released important new research that tracks how higher education graduates transition into the workforce, and how their careers develop over time. Using the Personal Level Integrated Data Asset (PLIDA), this study provides one of the most detailed pictures to date of what happens after students complete their qualifications.

The findings correlate with those collected by The Department of Education and Universities Australia and highlight the powerful role higher education plays in shaping Australia’s future workforce, while offering valuable insights for students, universities, industry and policymakers.

Why This Research Matters

Australia’s labour market is evolving rapidly. With more than 90% of future job growth expected in occupations requiring post-school qualifications, understanding the links between study and long-term employment has never been more important.

Traditional survey data has limitations, especially when it comes to sample size and long-term tracking. By using linked administrative data, this project provides a deeper and more accurate view of graduates’ career pathways, income growth, and occupation outcomes.

This report is the first phase in a broader program of work exploring student outcomes and higher education’s role in meeting Australia’s skills needs.

Key Findings

1. Linked data opens the door to long-term, meaningful insights.

By connecting education records with taxation data, researchers can more clearly track employment patterns, income progression, and occupational pathways over time.

2. Higher education delivers strong labour market outcomes.

Graduates across wide-ranging fields experienced clear economic benefits from their qualifications.

• Income grew by 35% in the first five years after completion — from $63,500 to $85,500.

• Fields like Mining Engineering, Medical Studies, and General Medicine led the way in both starting pay and long-term growth.

3. Some degrees lead directly to aligned careers.

• 72% of Education graduates became teachers.

• 60% of Engineering graduates went on to work as professional engineers.

This demonstrates strong qualification-to-career alignment in fields where specialised knowledge is essential.

4. Other qualifications unlock wide-ranging opportunities.

Degrees in Management, Commerce, and Society & Culture translated into careers across more than 70 distinct occupational groups. This versatility highlights the broad employability of graduates in these fields.

5. Postgraduate qualifications can significantly boost earnings.

For example:

• Business graduates with a postgraduate qualification earn a median of $54,800 more annually than those with only an undergraduate degree.

Employment and Income: What the Data Shows

Using tax data, researchers identified wage and salary outcomes for graduates one year after completing their study:

• 92% of graduates showed evidence of wage or salary work one year post-completion.

This gradually declined over time, which may reflect career progression into self-employment, time taken out of the workforce, or graduates moving overseas.

While these figures provide strong indicators of employment, they should be interpreted with care — absence of tax-file wage data does not necessarily indicate unemployment.

What This Means for Students, Universities, and Industry

For Students

The findings offer a clearer understanding of:

• The income outcomes associated with different study pathways

• How specific qualifications connect to real occupations

• Which fields offer the strongest long-term career potential

This can help students make more informed choices about their education and future career.

For Universities

Universities can use these insights to:

• Strengthen industry partnerships

• Improve course design and alignment with workforce needs

• Support students with clearer pathways into employment

For Industry and Policymakers

These findings provide critical data for:

• Workforce planning

• Productivity and labour supply strategies

• Understanding how education choices influence long-term economic outcomes

Looking Ahead

This report marks the beginning of a long-term research program focused on higher education outcomes. By leveraging linked administrative data, future studies will further unpack the complex pathways between study choices, labour market needs, and Australia’s economic wellbeing.

As Australia prepares for the next decade of workforce transformation, insights like these will be essential in ensuring our education system continues to deliver a skilled, adaptable, and future-ready workforce.

At Entrée Recruitment, we recognise how important the transition from study to work is, and this research highlights the strong career outcomes achieved by higher education graduates. As workplaces continue to evolve, employers need skilled, adaptable talent, and graduates need clear pathways into meaningful roles.

Entrée Recruitment supports both sides by connecting organisations with quality candidates and helping graduates and professionals step into roles that match their skills and goals. By understanding labour market trends, we help businesses build strong workforces and individuals build strong careers.

Whether you’re planning your next hire or your next career move, we’re here to help.

References

Jobs and Skills Australia

The Department of Education