Current studies and investigation of the graduate employability and recruitment process in some of the European countries have underlined the fact that there is a mismatch between demand and supply of graduate employees in the labour markets. On the other hand, recently, it has been identified that graduates are facing difficulties to achieve proper employment at a time when they have the liberty of speech and choice of working. Due to globalization and other developments and sudden recession effects on European countries, chances of getting a job and job security of graduates are becoming low. Through analysis of UK labour market trends and the job security of graduates as well as its surplus rate, current market condition could be understood. This study will be evaluating all the necessary information regarding UK labour market trends and needs of the graduates in the labour market to develop its performance and productivity level.
Critical analysis of the employment prospects for UK graduates
Recent survey and investigation results have accounted for a fall in the graduate unemployment status rate around 5.3% from 5.7% in 2016, which is only 3 years in the last forty has the United Kingdom experienced the lower levels (prospects.ac.uk, 2018, A). On the other hand, results and statistics of annual report shows an analysis of the destinations of 2017 graduates six months after leaving their university. These analyses exhibit the fact that graduate employment rate also fell from around 76% to 74%. This decreasing rates in both unemployment rate and employment rate is due to a high-pitched development in graduates entering in the premises of higher study, where rates have developed from 13% to 16% in 2017 (prospects.ac.uk, 2018, A). It has been seen that while the United Kingdom is recently in recession, developing numbers of graduates are going to further studies are historically connected to financial downturn, as exhibited in the last 3 major downturns. This report also pointed out that, while there were development in graduate numbers entering nursing, IT, marketing and into other significant areas, there were noteworthy falls seen in the numbers of graduates working in medical sector, teaching and other sectors, documenting the fact that declining number of students are practicing those subjects (prospects.ac.uk, 2018, A).
On the other hand, apart from these facts, various sectors like these having a fall of workers, this did not decode into develop graduate starting salaries that remained almost flat at an average of approximately £21,000. In a nutshell, overall the United Kingdom’s leading employers currently are planning to enlarge graduate recruitment process even further in the future, with around 8% more vacancies predicted than the previous year (bbc.com, 2018). This plan follows a seemingly-sized rise in 2017 as well as stands for the third consecutive annual development. Moreover, it could be said that in 2018, the country’s unemployment rates represent a relatively low 4% and the graduate labour market relics robust along with by some important measures is as effectively as it has been for some time. Current market competition for graduates and their preferable jobs is critical but candidates with adequate qualifications, capabilities and experience stand for good chances of employment (prospects.ac.uk, 2018, B).
Summarise the employment/earnings performance of graduates in the labour market
It has been seen that recently graduates in the United Kingdom do a variety of jobs than the graduates in the past years, partly because of the result of financial restructuring, globalization, technical changes and others relative changes in the demand for effectively skilled labour force as well as partly because of the changes in the labour market supply (Berger and Frey, 2016). Key outputs of present researches in this area exhibit that development of latest occupational classifications for monitoring changes in specifically graduate labour market and for studying relationship among higher study, and skill utilization in the labour market are one of the major forces behind the current situation. On the other hand, the changing distribution of graduates’ employment among occupations has also been evaluated. It has been noticed that currently over 40% of the graduate students in the UK worked in the education, public health sector compared with near about 21% of the non-graduates (Frey and Osborne, 2017).
According to the statistical report of July to September 2017, education, health and pubic administration sector are common job areas for graduates from different educational qualifications that might be due to the wider range of jobs present in this area (ons.gov.uk, 2018). This was a specifically common sector for those graduate student with degrees in dentistry or medicine, education and other relative subjects to medicine.
On the other hand, turning to the finance and banking sector, around 21% of employed graduate students were working in this field compared with around 15% of employed non-graduate students (gov.uk, 2018). Although, when considering the hotels, hospitality, distribution sector the percentage of employed graduate students working in this field was low compared to the percentage of employed non-graduates that is near about 10% and 23% respectively.
From the above figure, it has been understood that overall percentage of graduate students in effective-skill jobs was higher than the non-graduate students, but this percentage of each group in upper-middle capability jobs was fairly similar (gov.uk, 2018). It could be seen that on average scale, graduates aged 21 earned lower gross annual wage than 21 years olds who left the education with an apprenticeship. This is because they have just entered the labour market. However with time their earnings increased than the non-graduates. The annual income rate for graduates developed at a fast pace, before levelling out to the age 39 at an average of £35,000, whereas annual earnings for non-graduates developed at a more modest pace that levelled out near about £19,000 (gov.uk, 2018).
Looking back over the last 3-5 years, examine the performance of graduates in the labour market and discuss any changes and/or trends you see developing.
It has been identified that in 2013 there were around 12 million graduates in the United kingdom, an effective scale of employment then those who left education or with a lower grade. It has been estimated that over 40% of graduates then worked in the education, public administration and health sector. In 2013 annual earnings for graduate students developed at a higher peak at a later age then the annual earnings for the students left education (ons.gov.uk, 2018).
In 2016, the development of graduate jobs in the labour market is connected with the developing demand for higher capabilities, as concluded by the substantial study on task-biased and skill-biased technical change. On the other hand, in 2015, students with a graduate degree who aged between 31 and around 50 has the highest employment rates, lowest inactivity rates and others (David, 2014). In addition to this, results clearly develop between graduates aged 21 to 30 with those aged 31 to 40 as they achieve more experience in the labour market. On the other hand, it has been accounted that graduates encountered an annual decrease in their high skilled employment scale rate between 2014 and 2015 that is around 1.3% points around the working age population of the country as well as near about 2.2% points all over the young population in UK.
Although in 2017, post graduates and graduates had more or less similar employment rates, which is near about 87.7% and 87.5% respectively, post-graduates had a much greater skilled employment scales with around 77.8% of entire working age postgraduates employment compared to around 65.5% of all working age graduates in UK (assets.publishing.service.gov.uk, 2018).
In 2017, it has been seen that, employers were more concerned with delivering a more integrated quality apprenticeship system. At that moment there were mostly level 2 and 3 apprenticeship that are at GESE and “A level” standard. The plan was to go further from level 2 to the degree apprenticeships. Later, it has been seen that leading organizations had spent a levy of 0.5% of their payroll expenditures that is considered as a move, which has developed the profile of work based training and apprenticeships in general (hecsu.ac.uk, 2018).
Currently, in 2018 it has been seen that the graduate labour market jobs is expected to develop with around 11% rise in vacancies. As per the not-for profit companies, the “Institute of Student Employers”, the increase is a return to double-digit figures that is last seen in 2015, when students with graduate degree vacancies developed by 13%. On the other hand, recently, it has been studied that the Public sector is expected to foresee one of the biggest graduate vacancies gains along with around 22% development. According to several surveys, it can be said that utilities and IT organizations also provide plenty of graduate opportunities, viewing vacancies develop by 18% and 13% respectively (independent.co.uk, 2018).
On the basis of your research evaluate whether the benefits of obtaining a degree exceed the cost
The financial benefits of a college or higher educational degree could be thought of as the additional wages an individual could earn with a college degree relative of what a graduate student will earn without one. According to recent survey, it could be said that as with all the investments in higher study, a college or university education needs paying some extra costs to adhere the possible benefits that accrue over the lifetime of the investment. On the other hand, it could be said that with the developing tuition costs and various college graduates facing problems to find a good job, the value of a higher degree might seem to be in doubt. Although these factors in the labour market not alone determine whether higher education is a good investment or not (newyorkfed.org, 2018). Indeed, once the entire set of benefits and costs is taken into consideration, investment in higher education still appeared to be a wise financial decision for the average individual. To be more precise, it could be said that college and university students are generally pay more to go to school and are earning comparatively low upon graduation.
From the above analysis and current trends in the graduate labour market of the United Kingdom, it could be said that though the costs of availing higher education is rising, benefits are there in gaining an educational degree at this time. According to the employment prospects of graduates, it could be said that, they are more welcomed in various industries than the non-graduates individuals. Though their average wage development is slow and compared to the investment in educational level is low then they income, they still get various opportunities for career development than the non-graduates. Standing in the midst of changing employment scenario and demand of high-skilled labour force, it is necessary to have at least a graduate degree to enter effectively into the labour market.
Assets.publishing.service.gov.uk (2018). [online] Assets.publishing.service.gov.uk. Available at: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/701720/GLMS_2017.pdf [Accessed 13 Nov. 2018].
assets.publishing.service.gov.uk (2018). [online] Assets.publishing.service.gov.uk. Available at: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/518654/bis-16-232-graduate-labour-market-statistics-2015.pdf [Accessed 13 Nov. 2018].
BBC News. (2018). Graduate prospects 'at 10-year high'. [online] Available at: https://www.bbc.com/news/education-30745839 [Accessed 12 Nov. 2018].
Berger, T. and Frey, C.B., 2016. Structural transformation in the OECD: Digitalisation, deindustrialisation and the future of work. OECD Social, Employment, and Migration Working Papers, (193), p.0_1.
David, H., 2014. Skills, education, and the rise of earnings inequality among the" other 99 percent".
Frey, C.B. and Osborne, M.A., 2017. The future of employment: how susceptible are jobs to computerisation?. Technological forecasting and social change, 114, pp.254-280.
GOV.UK. (2018). Graduates in the UK labour market: 2017. [online] Available at: https://www.gov.uk/government/statistics/graduates-in-the-uk-labour-market-2017 [Accessed 13 Nov. 2018].
hecsu.ac.uk (2018). [online] Available at: https://www.hecsu.ac.uk/assets/assets/documents/gmt_spring_2017.pdf [Accessed 13 Nov. 2018].
Newyorkfed.org (2018). [online] Newyorkfed.org. Available at: https://www.newyorkfed.org/medialibrary/media/research/current_issues/ci20-3.pdf [Accessed 13 Nov. 2018].
Ons.gov.uk. (2018). Graduates in the UK Labour Market - Office for National Statistics. [online] Available at: https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/articles/graduatesintheuklabourmarket/2013-11-19 [Accessed 12 Nov. 2018].
Ons.gov.uk. (2018). Graduates in the UK Labour Market - Office for National Statistics. [online] Available at: https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/articles/graduatesintheuklabourmarket/2013-11-19 [Accessed 13 Nov. 2018].
Prospects.ac.uk. (2018), A. Prospects launches What do graduates do? 2017/18 | Prospects.ac.uk. [online] Available at: https://www.prospects.ac.uk/prospects-press-office/prospects-launches-what-do-graduates-do-2017 [Accessed 12 Nov. 2018].
Prospects.ac.uk. (2018), B. Work in the UK | Prospects.ac.uk. [online] Available at: https://www.prospects.ac.uk/jobs-and-work-experience/working-abroad/work-in-the-uk [Accessed 12 Nov. 2018].
The Independent. (2018). The jobs market looks slightly better for graduates seeking employment in 2018. [online] Available at: https://www.independent.co.uk/news/business/news/graduate-jobs-market-2018-growth-study-brexit-recruitment-student-employers-a8152031.html [Accessed 13 Nov. 2018].