Over Half of British University Graduates Work in Low-Skill Jobs

While a shortage of suitably-skilled jobs is problematic for many countries, the report concluded that the UK is particularly badly affected.

The report, Over-qualification and skills mismatch in the graduate labour market, stated that the number of people graduating from university now vastly outweighs the amount of high-skilled jobs. In contrast, countries such as Germany, the Netherlands and Slovenia, which have a history of strong vocational training, have 10 per cent or less of graduates in non-graduate jobs.

Ben Wilmott, CIPD’s head of public policy, blamed New Labour’s 1999 landmark pledge to send 50% of young people to university, and decried the Government’s record on high-skill jobs creation. This has led to a situation where many graduates are simply replacing non-graduates in less demanding jobs, or entering jobs where the demand for graduate skills is non-existent or falling.

The UK graduation rate is at 54 percent, which is the second highest in Europe behind Iceland, the CIPD said.

The trend is particularly prevalent in occupations such as construction and manufacturing where apprenticeships have been important in the past.

Peter Cheese, the CIPD’s chief executive, said that students receiving GCSE and A-level results this summer may be better off starting an apprenticeship than higher education.

Mr Cheese said that in many cases the “skills premium” graduates had “if it exists at all” was being “simply wasted”.

This is the third highest rate in the OECD (Organisation for Economic Co-operation and Development), with just Greece and Estonia faring worse.

The CIPD called on the Government to carry out a thorough review to determine how the UK can make the most of the educational options available and to make sure that it has a “productivity plan” in place so that it creates more high-skilled jobs and improves the use of skills available. “Our report highlights why young people should think carefully about opting for university when, for example, going into an apprenticeship at 16 or 18 could be a much better choice”.

Mr Cheese described the situation as being “unsustainable” when, according to predictions, more than 40 per cent of university graduates will not earn enough to repay their student loans. “It’s crucial we as a nation take stock now of whether our higher education system is delivering desired returns for graduates, for organisations, and society”.

The CIPD makes several recommendations, including calling on the government to ensure its productivity plan includes a specific focus on creating more high-skilled jobs.