What Do Graduates Do

Charlie Ball: HECSU Deputy Research Director

Current state of the UK jobs market

The UK economy shrank by over 6% between 2008 and 2010 However, total employment fell far less than predicted Despite that, youth unemployment is extremely high Current weak economy means that jobs recovery isn’t likely soon, particularly for young people

Is it worth going to university?

The ONS have analysed earnings data across the population (aged 22 to 64) between 2000 and 2010 and have concluded that degree holders, on average, earned £12,000 a year more than those without a degree.

Earnings are similar for those aged 22, at around £15,000, regardless of whether they have a degree or not For those without a degree, earnings increased for each year of age, levelling off at the age of 30 and peaking at the age of 34 at £19,400 For those with a degree, earnings increased faster for each year of age. They also increased for longer, levelling off at the age of 35 and peaking at £34,500 at the age of 51.

Popular myths about having a degree

•

“Everyone has a degree nowadays”

• Only one in three of the adult population of the UK has a degree. Less than half of students currently aged 14-18 will ever go to university.

•

Graduates only work for big business

• Half of new graduates work for small companies, and a quarter work for businesses with less than 50 employees •

All the graduate jobs are in London

• One in six graduates starts their career in London. The number goes up with time, but after 30, people with degrees start moving out again

….and some new ones popping up

• “N (where N is a large number) graduates have to do unpaid internships to get a job” • We don’t know how many people do unpaid internships at the moment. Nobody does. We do know that about 2% of graduates are working unpaid after 6 months • •

You need a Masters to get a job these days

• Over 145,000 first degree graduates were working after 6 months last year.

18.9% of last year’s graduates are/were unemployed

• This is a statistic taken immediately on graduation and is a ratio of all those with a job immediately against all those who were not working. Any graduate doing anything else – like the 22% in further study – was ignored. 8.5% of 2010 graduates were out of work after 6 months

What do graduates do?

284,165 first degrees were awarded to UK-domiciled graduates last year academic year.

Most graduates (70%) were working six months after leaving university Unemployment was down to 8.5% 14% went into further study (mostly Masters) Subjects having a tough time – IT, media, engineering Subjects faring better – quantitative social sciences (eg psychology, geography)

Employment of graduates from 2009/10 at the start of 2011

Management Science Engineering IT Health Education Business and finance 1% Law 1% Arts and design Marketing and PR Social & Welfare Other professionals Basic office roles Retail and waiting Other jobs 0% 2% 3% 3% 4% 5% 5% 4% 7% 6% 6% 8% 8% 9% 9% 10% 12% 13% 14% 14% 14% 16% Data from HESA Destinations of Leavers from Higher Education Survey 2009/10

North West

18000 16000 14000 12000 10000 8000 6000 4000 2000 0 North West 2005/6 15910 2006/7 16210 Data from HESA Destinations of Leavers from Higher Education Survey 2009/10 2007/8 16285 2008/9 16240 2009/10 17050

Employment of graduates from 2009/10 at the start of 2011 who were working in North West

Management Market'ng, PR Science R&D Engineering Health Education Bus & Fin IT Arts + culture Law Social & welfare Other profs Clerical Retail & waiting Other 0% 0.9% 1.0% 2% 2.6% 2.4% 4.5% 4.1% 5.3% 4.7% 4.8% 6.6% 8.4% 8.5% 15.5% 13.9% 4% 6% 8% 10% 12%

Proportion of 2009/10 graduates entering employment

14% 16% 16.8% 18% Data from HESA Destinations of Leavers from Higher Education Survey 2009/10

Merseyside, the North West and the UK

25% 20% 15% 10% 5% 0% All UK North West Merseyside Managers STEM 8.8% 8.4% 7.3% 6.4% 5.9% 4.2% Health 14.2% 15.5% 19.6% Education Business and finance 6.5% 6.6% 6.5% 12.6% 10.5% 8.1% Arts 6.4% 4.7% 4.4% Social and welfare Other professio nals Clerical and secretaria Retail and customer service Other occupatio ns 5.4% 5.8% 5.5% 4.4% 4.1% 4.0% 8.7% 8.6% 8.7% 13.8% 16.8% 20.1% 12.8% 13.9% 13.9% Data from HESA Destinations of Leavers from Higher Education Survey 2009/10

How do current employed graduates feel about their jobs?

20% of surveyed graduates had previously worked for their employer as a student 90% think it is important that their current role should enable them to progress in their career – 62% are satisfied that it will 55% are satisfied with their pay and benefits 64% are satisfied with their work/life balance, but 47% feel that they’re expected to work more than their contracted hours 57% were thinking of leaving their employer

What’s currently happening

• Employer confidence moves quickly, but at present it looks as if there might be slightly fewer vacancies on offer than last year. Plenty of time to change, though • • Sectors on the up: Engineering, IT, FMCG Looking at decline: financial services, public sector • There is a feeling that there may be opportunities with small businesses

Current things employers say they’re looking for:

Creativity. Lots of employers are desperately seeking new business ideas Communications skills. Your great ideas are not a lot of use if you can’t explain them and nobody listens Numeracy skill. Many employers admit that they have trouble finding people with really good maths skills A positive attitude. Employers don’t like people who find reasons they can’t do things. They like people who find ways to complete their goals no matter what Flexibility. This doesn’t necessarily mean ‘we want you to work a 50 hour week’, but it can mean saying ‘yes, I’ll do that’, when the boss asks you to spend a month working in Newcastle. Or Singapore

The future?

• Increased demand for highly skilled, flexible and adaptable workforce – less skilled and adaptable workers will be more seriously disadvantaged • New technologies will emerge, and numeracy is likely to be a key skill for employers • Work experience will be increasingly prized by employers