With the rise of tuition fees and the increasing number of graduates, the job market has become more competitive. Graduates are expected to be job-ready and have relevant skills and experience to offer employers.
According to the latest statistics from the Department for Education, the employment rate for working-age graduates in the UK was 86.4% in 2020, down 1.1 percentage points from the previous year. Recent graduates also face challenges in finding employment, with an unemployment rate of 12%, equivalent to over 96,000 unemployed graduates each academic year.
Employers are looking for graduates who possess a range of skills, including communication, teamwork, problem-solving, and adaptability. It is essential for graduates to develop these skills during their studies and gain practical work experience through internships, placements, or volunteering. In this article, we will explore the current state of graduate employability in the UK and provide tips for graduates to enhance their employability.
Current State of Graduate Employability
A recovering post-pandemic economy with variable demand across industries including technology, healthcare, and finance characterises graduate employability in the UK. Employers place an emphasis on specialised abilities like cybersecurity, digital marketing, and data analytics in addition to essential soft skills like problem-solving and communication.
Opportunities for remote employment have increased, offering flexibility regarding the choice of workplace location.
Employment Rates
According to the Department for Education, in 2021, the employment rate for working-age graduates (those aged 16-64) was 86.7%, which is an increase of 0.4 percentage points from 2020. However, the employment rate for working-age postgraduates was 89.1%, which is higher than the rate for graduates. This suggests that having a postgraduate degree may lead to better employment prospects.
Salary Expectations
Graduates in the UK can expect to earn an average salary of £30,000 per year, according to Prospects. This varies greatly depending on the industry and the degree obtained. For example, graduates in medicine and dentistry can expect to earn an average salary of £46,000 per year, while those in creative arts and design can expect to earn an average salary of £20,000 per year. It is important to note that these are just averages and individual salaries may vary.
Skills Gap
There is a growing concern about the skills gap among graduates in the UK. Employers often report that graduates lack the necessary skills to succeed in the workplace. According to a survey by the Chartered Institute of Personnel and Development, only 22% of employers believe that graduates are ready for work. This highlights the need for universities and employers to work together to ensure that graduates are equipped with the skills necessary to succeed in the workplace.
While the employment rate for graduates in the UK is relatively high, there are concerns about the skills gap and the varying salary expectations depending on the degree and industry. It is important for graduates to not only obtain a degree but also gain relevant skills and experience to increase their employability.
UK Graduate Statistics & Employment Rates
Here are some key statistics and employment rates for graduates in the UK:
- According to StandOut CV, in 2023, there will be an estimated 36.4 million graduates in the UK.
- In 2020, the employment rate for working-age graduates (16-64) was 86.4%, down 1.1 percentage points from 2019 (87.5%), according to GOV.UK.
- For working-age postgraduates, the employment rate was 90.5% in 2020, down from 91.7% in 2019, according to GOV.UK.
- In 2019-20, 80% of graduates were in employment or unpaid work 15 months after graduation, according to Universities UK.
- 19% of graduates were in further study, according to Universities UK.
- The median salaries for graduates were £9,500 higher than non-graduates, according to Universities UK.
It is important to note that recent graduates (2020 onwards) currently face an unemployment rate of 12%, which equates to over 96,000 unemployed graduates each academic year, according to StandOut CV. This highlights the need for universities and employers to work together to improve graduate employability and provide more opportunities for graduates.
While the employment rates for graduates have been slightly declining in recent years, the majority of graduates are still finding employment or further study opportunities within a year of graduation, with higher median salaries compared to non-graduates.
Top UK Universities in Graduate Employability
Graduate employability is a crucial aspect of any university education, and the UK is home to some of the best universities in the world in this regard. Here are some of the top UK universities for graduate employability based on various rankings:
| University | Ranking |
|---|---|
| University of Cambridge | 1st |
| University of Oxford | 2nd |
| Imperial College London | 16th |
| University College London (UCL) | 128th |
The University of Cambridge and the University of Oxford consistently rank among the top universities in the world for graduate employability. Their graduates are highly sought after by employers, and their degrees carry significant weight in various industries.
Imperial College London is another top university in the UK for graduate employability. It has a strong reputation in science, engineering, and technology, and its graduates are highly valued in these fields.
University College London (UCL) is also a highly respected institution, ranking 8th in the UK for graduate employability according to QS World University Rankings. Its graduates are known for their strong analytical and research skills, making them highly desirable to employers in various industries.
Other UK universities that consistently rank highly in graduate employability include the University of Warwick, the University of Bristol, and the University of Manchester. These institutions have strong academic programs, excellent facilities, and a dedicated career services team that helps students prepare for the job market.
Top UK Courses for Graduate Employability
When it comes to graduate employability, the course you choose can make a significant difference. Some degrees are more in demand than others, and some courses provide more opportunities for practical experience and industry connections. Here are some of the top UK courses for graduate employability according to recent rankings:
- Computer Science: With the rise of technology and digital innovation, computer science graduates are in high demand. According to the QS Graduate Employability Rankings 2022, computer science is the second most employable degree in the UK, with graduates earning an average starting salary of £27,000.
- Engineering: From civil engineering to mechanical engineering, there is a wide range of engineering courses that offer strong job prospects. According to the Times Higher Education Graduate Employability Rankings 2020, engineering is the third most employable degree in the UK.
- Business and Management: Business and management degrees provide a broad range of skills that are highly valued by employers. The QS Graduate Employability Rankings 2022 ranks business and management as the fourth most employable degree in the UK.
- Medicine: Medicine is a highly competitive field, but it also offers some of the best job prospects. According to the Times Higher Education Graduate Employability Rankings 2020, medicine is the most employable degree in the UK.
- Law: Law graduates are in demand in a variety of industries, from finance to politics. The QS Graduate Employability Rankings 2022 ranks law as the ninth most employable degree in the UK.
Of course, these rankings are just a starting point. The specific course you choose and the university you attend will also play a significant role in your employability after graduation. It’s important to do your research and choose a course that aligns with your interests and career goals.
Look for courses that offer practical experience, industry connections, and opportunities for networking and professional development. With the right course and a strong work ethic, you can set yourself up for a successful career after graduation.
3 Factors Affecting Graduate Employability
Many important aspects that impact a graduate’s suitability for job market have an impact on their employability in the UK. These factors include how effectively their education and experience align with the demands of the industry today, how easily they may obtain real-world work experience through internships or placements, and how effective their industry and professional networks are.
1. Degree Subject
The degree subject is an important factor that affects graduate employability in the UK. Some degree subjects, such as engineering, computer science, and business, tend to have higher employment rates and starting salaries compared to other subjects.
According to the Graduate Labour Market Statistics, graduates with degrees in medicine and dentistry had the highest employment rates in 2021, with 98.6% of graduates in employment or further study six months after graduation.
On the other hand, graduates with degrees in creative arts and design had the lowest employment rates, with only 72.5% of graduates in employment or further study six months after graduation.
2. Work Experience
Work experience is another important factor that affects graduate employability. Graduates who have relevant work experience, such as internships, part-time jobs, or volunteering, tend to have a higher chance of securing employment after graduation.
According to a report by the UK Government, work placements and internships can help students develop the skills and knowledge required by employers, and can also provide valuable networking opportunities.
Graduates who have work experience are often seen as more attractive candidates by employers, as they have demonstrated their ability to apply their knowledge and skills in a real-world setting.
3. Soft Skills
Soft skills, such as communication, teamwork, problem-solving, and time management, are also important factors that affect graduate employability. Employers often look for candidates who have a combination of technical knowledge and soft skills, as these skills are essential for success in the workplace.
Graduates who have developed their soft skills through extracurricular activities, volunteering, or part-time jobs, are often seen as more attractive candidates by employers. According to a study by Taylor & Francis Online, graduates who have developed their soft skills are more likely to be employed in graduate-level jobs and earn higher salaries compared to those who have not.
Efforts to Improve Graduate Employability
In the UK, universities, government organizations, companies, and students themselves are collaborating to improve graduate employability through a variety of approaches. Universities are encouraging industry placements or internships as an opportunity of giving students real-world experience, providing career guidance services, and incorporating employability skills development into their educational programs.
Government Initiatives
The UK government has taken several initiatives to improve graduate employability. One of the most significant is the Higher Education and Research Act 2017, which aims to create a more responsive and flexible higher education system that meets the needs of students and employers. The Act includes provisions for the creation of the Office for Students, which will regulate universities and ensure that they are delivering high-quality education and improving graduate outcomes.
In addition, the government has launched several programs to improve graduate employability, such as the Graduate Talent Pool, which provides graduates with access to internships and work experience opportunities, and the National Graduate Development Programme, which offers graduates the chance to develop their skills and gain experience in a range of industries.
University Programs
Universities in the UK have also taken steps to improve graduate employability. Many institutions offer work placements, internships, and other forms of work experience to students, allowing them to gain practical skills and experience in their chosen field. Some universities have also developed employability-focused courses and modules, which aim to develop students’ skills and prepare them for the job market.
Universities have established partnerships with employers to provide students with opportunities to engage with industry and gain exposure to different career paths. These partnerships often involve guest lectures, mentoring programs, and other initiatives that help students develop their professional networks and gain insight into the world of work.
Employer Partnerships
Employers in the UK have also played a key role in improving graduate employability. Many companies have established partnerships with universities, offering internships, work placements, and other forms of work experience to students. These partnerships provide employers with access to a pool of talented graduates, while also giving students the opportunity to gain valuable experience and develop their skills.
Some employers have also developed graduate training programs, which provide graduates with structured training and development opportunities to help them transition into the world of work. These programs often focus on developing specific skills and competencies, such as leadership, communication, and project management.
Conclusion
Graduate employability in the UK is a complex issue that is influenced by a variety of factors, including economic conditions, educational attainment, and employer demands. While the employment rate for working-age graduates has increased slightly in recent years, recent graduates still face significant challenges in finding employment, with an unemployment rate of 12%.
Despite these challenges, there are steps that graduates can take to improve their employability, such as gaining work experience, developing transferable skills, and networking with potential employers. Additionally, universities and policymakers can play a role in improving graduate employability by providing relevant and up-to-date education and training, as well as promoting partnerships between universities and industry.
It is also important to recognize the limitations of using graduate employment rates as a measure of the value of higher education. While earning potential is an important consideration for many students, it is not the only factor that should be taken into account when evaluating the benefits of higher education. Other factors, such as personal growth, social mobility, and civic engagement, should also be considered.
While there is no simple solution to the issue of graduate employability in the UK, it is clear that it is an important issue that requires ongoing attention and action from all stakeholders. By working together, we can help ensure that graduates are equipped with the skills and knowledge they need to succeed in today’s rapidly changing job market.
