Copyright Liverpool Hope University College 2003 3 drivers of change: Globalisation and the deregulation of interconnected, global financial markets Technological innovation leading to the democratisation of Information Decline of heavy industries and the rise of the service sector
Copyright Liverpool Hope University College 2003 Globalization means … … the inexorable integration of markets, transportation systems and communication systems to a degree never witnessed before – in a way that is enabling corporations, countries, and individuals to reach around the world farther, faster, deeper and cheaper than ever before Friedman, T. (2003)
Copyright Liverpool Hope University College 2003 Global Reach The Rise of Corporate Global Power, I.P.S. (2000) 51 of the world's top 100 economies are corporations. Only 49 are countries. Sales of the Top 200 corporations are greater than the joint sales of all countries, minus the biggest ten. Top 200 sales equal 27.5% of world economic activity – this by employing just 0.78% of the worlds workforce. WAL*MART employs 5% of the Top 200s workforce.
Copyright Liverpool Hope University College 2003 Britains Fastest Growing Jobs (1990 – 2000) Source: LFS, 2003
Copyright Liverpool Hope University College 2003 Services account for 76% of UK jobs and are the dominant source of job creation (DTI) Manufacturing accounts for 17% (and falling) Services employ more women than the economy as a whole Public sector, distribution, hotels and restaurants are now the largest employers Since 1984, the main job-generating service industry has been business services How has this happened? Rise of the Service Sector DTI Report, 2001
Copyright Liverpool Hope University College 2003 The quiet revolution: There are 1.8 million students in the UK 57% are women 51% are over 21 when they enrol 15% are from ethnic minorities 5% have a registered disability 1-in-5 are from private schools 53% work during term time (up 5% from 02) Graduate debt currently averages £11,365 (up £1,648 on 2002) NatWest,Money Matters Survey 2003. Student debt expected to triple by 2010 Barclays
Copyright Liverpool Hope University College 2003 Student numbers (1900 – 2000)
Copyright Liverpool Hope University College 2003 What do graduates do? Entering employment:67.7% (68.4%) Further study:18.4% (19.1%) Not available:6.4% (6.0%) Seeking (not unemployed):1.2% (1.0%) Unemployment:6.3% (5.5%)
Copyright Liverpool Hope University College 2003 Graduate Employment & Unemployment 1993 - 2001 What do Graduates Do? AGCAS/CSU
Copyright Liverpool Hope University College 2003 Top 10 for Employment Top 10 for Further Study Lowest 10 for Unemployment Civil Eng. (79.2)HND (62.3)Civil Eng. (2.9) Accountancy (78.2)Law (55.2)Law (3.7) Business / Mgnt (75.7)Chemistry (38.7)HND (4.4) Media Studies (74.1)Physics (32.7)Geography (5.0) Building (73.3)Biology (28.9)Building (5.5) IT (72.6)History (28.8)Psychology (5.6) Mech. Eng. (70.7)English (28.0)Chemistry (5.9) Drama (70.7)Mathematics (26.5)English (6.0) Design Studies (70.2)Geography (22.9)Accountancy (6.2) Elec./ Elec. Eng. (68.9)Mod.Langs (21.3)History (6.3)
Copyright Liverpool Hope University College 2003 Graduate earnings Depends on who you ask! AGR quotes£20,300 (£30,000 after five years) CSU:£17,986 BBC: £13,000 NatWest:£12,659
Copyright Liverpool Hope University College 2003 But … Despite being fewer in number, AGR salaries are still rising (up this year by 4.3%) Top earners: management consultants and the City (average: £19,308). IT graduates can still earn up to 25% more than other graduates after 3 years Beware: regional, institutional and gender differentials apply …
Copyright Liverpool Hope University College 2003 Glass ceilings Despite achieving consistently higher grades, womens salary expectations remain lower than mens: £16,000 compared to £18,600 Aged 24 a female graduate will earn 15% less than a male. The gap will widen with age The gender pay gap remains the same even when women and men have studied the same subject, achieved the same grade and are employed in the same job
Copyright Liverpool Hope University College 2003 Conclusion Graduate job markets are highly diverse, reflecting global economic and business trends; Services are fast becoming the dominant sector. In services, workers are human software – an integral part of the brand experience; A graduate Premiership now exists; its profile is far bigger than the actual number of jobs it has to offer; Entry to The Premiership is dependent on symbolic capital – cultural, economic, educational, etc In terms of graduate employability, Widening Participation does not yet mean Widening Access – remedying this is will be a key challenge for HE!