Uni grads help others get jobs: research

Having more university graduates in work boosts the job prospects and wages of those without degrees, a new report has found.

The research by Cadence Economics for Universities Australia, released on Monday, finds that for every 1000 graduates entering the workforce, 120 jobs are created for people without degrees.

When more university graduates are employed, productivity lifts and Australian industry becomes more competitive, meaning demand for other workers increases, the report says.

It finds that without this "spillover" effect, there would have been zero growth in employment of workers without degrees over the past eight years.

The report also finds that wages for workers without a university education rose by $655 in 2014/15 because of the effect of new graduates entering the workforce.

Universities Australia says the findings that higher education doesn't just benefit those with degrees underlines the need to keep up funding to the sector.

"If we want to create more jobs and better-paying jobs for all Australians, we can't afford to cut investment in the engine room of economic transition: our universities," chief executive Belinda Robinson said in a statement.