More young people heading to university because of dire employment market, despite projected lack of graduate jobs

School-leavers are applying to do degrees rather than enter the workplace, because of uncertainty over the post-pandemic and Brexit jobs market, new research shows.

Nearly three fifths — 57% — of 17–19 year olds in the last two years of school said their decisions about post education work or training have been impacted by the pandemic, according to a survey by City and Guilds, which delivers technical courses and qualifications in digital and IT, and engineering.

Whilst university is the default choice for many young people, with A-level results due for publication tomorrow (August 10), recent data and research suggests that the prospect of a degree may overpromise and underdeliver because there are not enough predicted graduate jobs.

Four out of ten respondents said they intended to go to university, compared to 13% who plan to do an apprenticeship, and 22% who want to go straight into employment. Yet only 18% of employers who responded to the City & Guilds Skills Index said they intended to recruit graduates in the next year.

The City and Guilds data suggested that, faced with a rapidly changing and uncertain jobs market, young people are opting to go to university to improve their future career prospects, with 44% of school leavers who are choosing university believing this to be the best way to get a job, and 39% thinking they will get paid well if they have a degree.

However, since the onset of the pandemic, this may no longer be the case. According to recent research from Incomes Data Research, both a graduate and a fully qualified degree-level apprentice can expect to earn the same salary upon completion of their qualification (£32,500), and data from the ONS finds nearly four in ten — 37% — of all graduates are unable to find graduate level jobs

Businesses are also prioritising new recruits who are work ready. Data from City & Guilds Group’s Skills Index report found that employers are twice as likely to look to take on apprentices or trainees to fill skills gaps — 36% — as opposed to graduates,18%.

Kirstie Donnelly, CEO of City & Guilds Group, said: “For many young people, the idea of university being the golden ticket to a great career is ingrained from a young age. But as the jobs landscape continues to reel from the impact of Covid19 and Brexit, it’s more important than ever before to understand that this isn’t the only option available to them. Employers are increasingly recognising the value of apprentices and other routes into the workplace that teach workplace skills.

“Ahead of results day, it’s important that young people understand the full range of options available to them and which types of jobs are likely to be available when they finish their studies. We need to ensure they have access to robust and up to date careers advice that considers the genuine needs of the local labour market, so they can make smarter choices about their career paths.”

Whilst school leavers are most likely to opt for university as a default next step, most do not consider it to be best value for money, nor the best route to prepare for the workplace.

Twice as many respondents to the City & Guilds poll of 1,000 16–19 years olds think apprenticeships are better value for money — 42% — compared to undergraduate degrees, 21%. And over three times as many, 51%, believe apprenticeships are better for preparing people for the workplace, compared to undergraduate degrees, 15%.