A new report – Busting graduate job myths – published today by
Universities UK reveals strong employer demand for graduates
whose future job prospects continue to look bright.
ONS data reveals the number of UK workers in professional jobs
has risen from 11.1 million to 15.9 million since 2004, but there
remains almost one million more professional jobs than workers
with degrees in the UK to fill them.
The number of graduate vacancies is now 20% higher than in 2019
before the Covid-19 pandemic, reports the Institute of Student
Employers (ISE), with job vacancies for graduates expected to
increase by more than a fifth (22%) in 2022 compared to
2021.
The report shows that in 2020 the number of UK workers in
professional level employment rose by 647,200 and those in other
roles fell by 817,000 during the pandemic, and other ONS data
reveals graduates were also less likely to be furloughed or in
non-graduate jobs because of the impact of Covid-19.
Meanwhile, the Organisation for Economic Co-operation and
Development (OECD) estimates that while 14% of the UK workforce
is overqualified for their current role almost twice that number,
27.7%, are underqualified - the second-highest level of the
entire OECD, behind Ireland.
Future demand for graduate skills looks strong - a recent
analysis by PWC suggests that Artificial Intelligence will
increase demand for graduates by about 10% with those in
healthcare, IT, and marketing in greatest demand.
Professor Steve West CBE, President of Universities UK
and Vice-Chancellor of UWE Bristol, said:
“Students quite rightly want to know that going
to university is worthwhile and a good investment for the future.
Despite some questioning the value of graduate skills this report
shows that employer demand for UK graduates is significant - it
has increased year-on-year and is likely to grow in the future.
“A highly skilled workforce is essential to
levelling up and creating economic and social prosperity
everywhere in the UK. It is important that the UK Government
develops the right conditions for universities to fully support
business growth and skills development for learners of all
ages. To be clear this means that the UK Government must
invest in a sustainable long-term funding solution for higher
education.”
Alex Hall-Chen, Senior Policy Advisor at the Institute of
Directors, said:
“With employers consistently citing labour and skills shortages
as a top factor having a negative impact on their business,
investment in skills will be a crucial element of the UK’s
continued recovery from the Covid-19 pandemic.
“Demand for graduate skills among employers remains strong –
particularly in transferable employability skills such as
critical thinking, communication, and leadership – and the higher
education sector will be an essential component in meeting the
UK’s rapidly changing skills needs.”
Stephen Isherwood, Chief Executive at Institute of
Student Employers, said:
“In both the short and long-term the demand for skilled graduates
is only going to increase. To ensure that employers can access
the talent they require right across the UK economy, it is
imperative that we continue to invest in graduate talent.”
