With the spike in tuition fees some students are beginning to wonder if university is still worth the cost. And it seems like recent data concerning graduate unemployment isnt exactly going to help change their minds; the Graduates in the Labour Market 2012 report published by the Office for National Statistics (ONS) shows that theres been a rise in the unemployment rate for new graduates with the figure standing at 18.9% in the final quarter of 2011. Also in the final three months of last year, 35.9% of graduates who completed their degree in the last six years were in low-skilled jobs compared to about one in four in 2001. Its clear that at face value such data wont help to raise student morale. Instead, it might help worsen the view of already huge financial pressures and perhaps create more defeatist perceptions about the prospects of securing graduate employment. But its not all doom and gloom ladies and gentlemen and its important to view this data in context as there is much to bear in mind.
For starters, in recent years we have witnessed a rapidly rising number of graduates and so it figures that it will take time for the graduate market to fully adapt to this adjustment. Competition is high and the selection process has become far more rigorous. Theres also the issue of the interim graduate who doesn't really fit into the conventional notion of being unemployed. For example, someone whos graduated but wont start work until September, or equally, someone who is waiting to start a masters degree and is quite understandably just making use of the opportunity to kick back and relax. Two great definitions from Charlie Ball, the deputy research director at the Higher Education Careers Services Unit, does a great job of putting this into context; œUnemployed: Without job, actively seeking work in the past four weeks and available to start work in the next two weeks. Out of Work: Have found job and are waiting to start in the next two weeks. To throw some numbers into the mix, in 2009/10, 14% of first degree graduates pursued post graduate study. So you get the idea. The pictures far from black and white, more like varying shades of grey. To clear up your portrait, try adding a splash of raw data and a sprinkle of comparative reports. So although some of these figures might encourage curling into a ball and giving your pillow some eye watering affection, despite how it may seem to some, securing a graduate job remains far from impossible.
On a brighter note, figures from the Labour Force Survey confirm as Jamie Jenkins, ONS statistician states, that œThere is a big difference between average earnings for graduates and non-graduates. Further details include that in the last decade, graduates earned, on average, £12,000 more than non-graduates. That in 2011, the median hourly rate of pay for all graduates aged 21 to 64 was 70% higher when compared to non-graduates. That for non-graduates, earnings peak at £19,400, whilst graduates can expect to experience a faster and more long term annual pay increase with average pay peaking at £34,500. So speaking strictly in terms of return on investment, its still definitely worth going to university.
Another interesting debate thats springing up left and right is whether or not its becoming more and more important to choose your university course wisely. Results show that theres a large difference in pay grade based on subject selection, with medicine and science graduates topping the charts and those with an arts degree finding theyre glued to the bottom. Perhaps some food for thought, but you can equally argue that a degree doesnt make the man, the man makes the degree, and that man will always be more than his degree. It would be more prudent to say that what you do overall during your time at university is becoming just as important, if not more so, as what you study. So long as you get a 2.1 of course.
You can have a look at the results from the Labour Force Survey here:
