What s happening in the graduate jobs market? Charlie Ball: HECSU Deputy Research Director

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1 What s happening in the graduate jobs market? Charlie Ball: HECSU Deputy Research Director

2 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 will ever go to university. Graduates only work for big business Last year, 43% of new graduates started work for small companies, and 28% worked for businesses with less than 50 employees All the graduate jobs are in London One in five graduates starts their career in London. Many of those jobs are confined to a relatively small area of London.

3 Let s talk about London.. Centre for Cities Outlook 2014 told us that London is the top UK city for private job creation 35% of jobs in London are graduate compared to 26% nationally Only Manchester compares to London for career progression Companies with London HQs are the biggest private employers in every other city Economic recovery is very strongly centred on London

4 BUT look at where the jobs actually are Barking and Dagenham Barnet Bexley Brent Bromley Camden City of London Croydon Ealing Enfield Greenwich Hackney Hammersmith and Fulham Haringey Harrow Havering Hillingdon Hounslow Islington Kensington and Chelsea Kingston upon Thames Lambeth Lewisham Merton Newham Redbridge Richmond upon Thames Southwark Sutton Tower Hamlets Waltham Forest Wandsworth Westminster Where in London did last year's graduates get their first job? 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0%

5 .and always some new ones emerging You re better off with a 2:2 from a top university than a 2:1 from a less prestigious institution Unemployment rate for 2:2 from top university : 9.7%. 2:1 from post-92 8%. You need a postgraduate degree to get a job these days Nearly 180,000 first degree graduates were known to working after 6 months last year. The jobs market for postgraduates has also been hit by the recession although it s still reasonably strong. You re better off looking for work outside the UK Almost all the popular alternatives are also having problems with graduate employment particularly the US. There s not much evidence of loads of graduates leaving the country to get good jobs.

6 Proportion of graduates 2:2 from highly selective institution vs 2:1 from less selective 60% 50% 40% 30% 20% 10% 0% Full-time work Part-time work Primarily in work and also studying Primarily studying and also in work Full-time study Part-time study Due to start work Unemploye d 2:1 from institution with lower entry requirements 54.1% 15.9% 3.0% 3.3% 9.9% 1.2% 0.7% 7.4% 4.4% 2:2 from more selective institution 50.7% 14.2% 2.4% 2.7% 12.7% 1.0% 1.2% 9.8% 5.4% Other

7 Out in early February In The News Surveyed 202 high-profile employers Reports that graduate vacancies predicted to be up by 10.2% this year Particularly on the up IT, telecoms, utilities, banking, accountancy Predicted to fall investment banking, law

8 So what s going on?

9 What do graduates do? 314,635 first degrees were awarded to UK-domiciled graduates last year academic year. Most graduates (74%) were working six months after leaving university 178,450 graduates Unemployment was 8.5%, very marginally down on last year, and where it was two years ago. 13% went into further study (43% Masters) Subjects having a tough time IT, media, biology, electrical engineering, design, accountancy, economics Subjects faring better quantitative social sciences (eg psychology, geography), vocational health subjects, mechanical engineering, languages, civil engineers

10 Employment of graduates from 2011/12 at the start of 2013 Managers 4.5% Health 13.8% Education 6.6% Social and welfare STEM IT 4.0% 4.9% 5.2% Business and finance 8.8% Marketing and PR 6.8% Arts, design, media Other professionals Childcare, health, education assistants 4.8% 5.5% 5.9% Clerical and secretarial 8.5% Retail, catering and waiting 13.7% Other occupations 7.1% 0% 2% 4% 6% 8% 10% 12% 14% 16% Proportion of employed first degree graduates Data from HESA Destinations of Leavers from Higher Education Survey 2011/12

11 Percentage of UK-domiciled 2008/9 first degree graduates What do graduates do after 3.5 years? 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Working Studying Working and studying Unemployed Other 2008/9 graduates after 6 months 59.2% 15.4% 8.0% 8.9% 8.4% 2008/9 graduates after 3.5 years 80.7% 8.1% 5.1% 3.4% 2.8% Data from HESA Destinations of Leavers from Higher Education Survey 2008/9 and HESA Longitudinal Destinations of Leavers from Higher Education Survey 2008/9

12 Proportion of 2011/12 graduates What were UK-domiciled graduates from Midlands institutions from 2011/12 doing at the start of 2013? 60% 50% 40% 30% 20% 10% 0% Full-time work Part-time work Primarily in work and also studying Primarily studying and also in work Full-time study Part-time study Due to start work Unemploy ed Midlands 54.2% 14.3% 3.3% 3.1% 12.1% 1.1% 0.8% 6.9% 4.2% East Midlands 55.7% 14.1% 3.0% 2.8% 12.0% 0.9% 0.7% 6.2% 4.5% West Midlands 52.4% 14.5% 3.6% 3.5% 12.3% 1.3% 0.8% 7.7% 3.8% Other Data from HESA Destinations of Leavers from Higher Education Survey 2011/12

13 Where were UK-domiciled graduates from Midlands institutions from 2011/12 working at the start of 2013? East of England, 6.7% London, 14.4% South East, 8.1% South West, 3.7% Wales, 0.9% Scotland, 0.4% Northern Ireland, 0.2% Guernsey, Jersey and the Isle of Man, 0.1% Other-EU, 1.1% West Midlands, 29.9% Non-EU, 1.4% Unknown, 2.2% North East, 0.5% North West, 3.9% Yorkshire and The Humber, 3.8% East Midlands, 22.7% Data from HESA Destinations of Leavers from Higher Education Survey 2011/12

14 Number of UK domiciled 2011/12 graduates in location after six months Where were UK-domiciled graduates from Midlands institutions from 2011/12 working at the start of 2013? 3,000 2,500 2,000 1,500 1, Birmingh' m Nott'ham Leicester Greater London Staffs Northants Leics Warwicks Lincs W. Midlands Worcs Derby Notts Midlands graduates Data from HESA Destinations of Leavers from Higher Education Survey 2011/12

15 Proportion of employed 2011/12 graduates What jobs did graduates from Midlands institutions do? 25% 20% 15% 10% 5% 0% Managers Health Education Social and welfare Science Engineeri ng + IT Business & finance Arts, design, media Other profs. Childcare, health, education occupatio ns Clerical and secretaria l Other occupatio ns Midlands graduates 4.9% 11.3% 6.4% 5.3% 0.9% 8.7% 17.9% 5.8% 5.0% 5.8% 8.0% 20.0% Data from HESA Destinations of Leavers from Higher Education Survey 2011/12

16 Proportion of employed 2011/12 graduates What jobs did graduates from Midlands institutions do in the East Midlands? 30% 25% 20% 15% 10% 5% 0% Managers Health Education Social and welfare Science Eng. + IT Business & finance Arts, design, media Other profs. Childcare, health, education Clerical & secretarial Other occupation s Derby 2.9% 16.6% 5.0% 5.7% 0.5% 15.4% 9.0% 3.5% 3.9% 6.8% 8.0% 22.8% Leicester 4.7% 16.6% 4.1% 6.6% 1.2% 4.1% 10.8% 4.7% 3.8% 7.2% 9.9% 26.3% Nottingham 3.6% 18.0% 4.7% 5.0% 1.7% 7.4% 11.8% 5.5% 4.7% 5.0% 8.7% 23.7% Derbyshire 3.6% 10.2% 6.7% 4.0% 0.8% 8.0% 9.6% 5.7% 8.4% 11.1% 6.7% 25.1% Leicestershire 4.8% 6.7% 6.4% 4.9% 0.4% 10.5% 14.5% 6.7% 6.2% 8.5% 8.1% 22.5% Lincolnshire 7.6% 14.0% 9.1% 6.7% 0.5% 6.8% 11.8% 7.2% 7.2% 5.3% 4.8% 18.9% Northamptonshire 3.9% 12.4% 9.3% 4.2% 0.6% 7.0% 12.0% 5.5% 5.0% 10.7% 10.4% 19.0% Nottinghamshire 4.6% 10.7% 9.6% 6.9% 0.8% 10.1% 9.6% 7.1% 5.6% 7.2% 8.7% 19.1% Data from HESA Destinations of Leavers from Higher Education Survey 2011/12

17 Midlands graduates from 2011/12 and further study Other qualification, 9.9% Doctorate, 7.6% Professional qualification, 16.3% Another first degree, 3.4% Masters, 38.8% PGCE or other PG diploma, 24.0% Data from HESA Destinations of Leavers from Higher Education Survey 2011/12

18 Number of UK domiciled 2011/12 graduates taking Masters subject What Masters subjects did Midlands first degree graduates from 2011/12 take? History by period Law Psychology Management studies Business studies Marketing Journalism Sport & exercise science International relations Masters International business studies Data from HESA Destinations of Leavers from Higher Education Survey 2011/12

19 Work experience Employers prefer graduates to have work experience This doesn t mean graduates have to have worked without pay Most graduates do not have to take unpaid work to get a job But working unpaid is more common in certain industries, eg media, environment, PR, fashion, and seems more common in London

20 Unpaid internships who does them? 1,835 graduates at all levels known to be unpaid interns after six months. 1,560 first degree graduates (0.9% of those known to be working), 235 Masters graduates (0.7% of those known to be working) Unpaid interns tend to : Be women 63% were women Only be working as interns 84% only have this job (but much more likely than graduates as a whole to have a second job). 69% are working full time unpaid. Have a 2:1 or a First (79%) Be from a university with high entry requirements (55%) Be from London or the South East (48%) Have found their job through personal contacts (31%) 14% of unpaid interns did a design degree, 7.5% did English, 7% did history, 5% did politics.

21 Unpaid interns where are they working Unpaid interns tend to work: In London 60% of all unpaid interns were working in London In the following industries Design PR Advertising Media (esp TV, magazines and newspapers) Law Social charities In the following jobs: Marketing (11% of all unpaid interns) PR Journalism Graphic design Admin (classed as non-grad job, but usually requiring degree) Researchers Over a third of all unpaid interns in these six roles

22 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

23 BUT Going to university does not guarantee you a good job and it never has

24 What s currently happening Employer confidence moves quickly. At present, it s increasing, and many firms expect an increase in hiring in the next 6 months. Sectors on the up: Engineering (for export), IT, some business services At present, most sectors report improving conditions Some skills shortages in engineering and IT, possibly also in construction Conditions are volatile and sector confidence changes quickly, although things have now improved

25 What s currently happening Most graduates get jobs. The graduate jobs market as a whole is improving and is expected to go on improving as economic recovery continues.

26 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 in the workplace Work experience will be increasingly prized by employers

27 The future? Many future graduates will come to work in jobs we don t yet have names for, for companies that don t yet exist, using technology that hasn t yet been invented. A degree will help them to adapt to new workplaces

28 In summary Graduates can probably look forward to a job and a decent career better than they would if they didn t go There s no guarantees, though The Midlands have a relatively healthy labour market especially Birmingham - as long as graduates are prepared to be mobile Graduates need to get work experience of some kind as soon as possible. Some are better than others, but anything is better than none. It doesn t have to be unpaid

29 ANY QUESTIONS?

30 Where next? Writing the perfect UCAS reference stay in here Arts, Humanities and Law Admissions Tutor Panel follow Amy University communication with teachers and advisers follow Daniel Campus tour follow Samuel

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