Research 2

Increase in the number of unemployed graduates

An increasing number of university graduates are failing to find work, with almost half still unemployed after three months, according to new research from council leaders.

Research by the Local Government Association (LGA) reveals the number of graduates in full-time work has fallen to 51%, compared with 57% in 2003. The number of graduates going into part-time work is also increasing, going from 7% to 11% in the same time period.

The figures also show that there is huge variation between regions due to variable job opportunities. Out of the 20 areas with the lowest proportion of graduates in full-time employment, 17 are in London. The capital has more highly skilled jobs so attracts a higher number of university leavers looking for work.

The LGA is calling on Government to give councils and employers greater powers so they can match skills training with the jobs available in local labour markets.

Peter Box, chairman of the LGA’s Economy and Transport Board, said: ‘Councils and employers best understand their local labour markets, and we want to work with universities to ensure graduates are not only equipped to take local jobs but that we are able harness their talent to drive growth in our economies. We need to ensure that the skills people have make a better match with the jobs that are being created in a local area.

‘Failure to get this right is not only disastrous for young people, but for taxpayers too. Young people who are trying to get on the career ladder are instead finding themselves without a job and potentially falling into long-term unemployment. This can have scarring effects that last a lifetime and have a huge cost to the taxpayer in welfare and benefits.’