Young people and graduates in the labour market Clare Smith & Andrew Damant

Summary of content Latest labour market estimates for young people aged 16 to 24 Focus on unemployment - Trends since the 1980s - Impact of education on the rate and proportion - EU comparisions - Qualifications Focus on employment - Trends since Types of jobs - Earnings - How men and women are doing

Summary of content Graduates in the labour market - Increase in the number of graduates - Skill level of jobs - Employment rates for graduates and non-graduates - Unemployment rates for graduates - Earnings by degree subject studied

Latest estimates For November 2011 to January 2012, around 7.3 million young people in the UK: Many full-time students also have a job... Engaging in the labour market 3.6 million had a job 1.04 million looking for work Not engaging in the labour market 2.66 million economically inactive Others would like a job and are looking... Many choose not to work, main reason being education

Latest estimates 7.3 million young people In full-time education 3.1 million Not in full-time education 4.2 million 27% 10% 63% Employed Unemployed Inactive 66% 17%

Thousands Focus on unemployment 1.04 million Annual Spring estimates – not seasonally adjusted 1992 onwards Rolling three month estimates – seasonally adjusted 731 thousand All aged 16 to 24Excl. full-time students

% Youth unemployment since the 1980s Impact of education Rate can be affected by people choosing to stay on in education as active population will fall Rate = Unemployed Employed + Unemployed

Unemployed Inactive Example Employed Unemployed Unemployed + Employed 20 people16 people4 people Unemployed All young people Rate =Proportion = % 10.0% 20 people16 people % (up from 16.7%) 4 40

Youth unemployment since the 1980s Impact of education Rate can be affected by people choosing to stay on in education as active population will fall Prop = Unemployed Employed + Unemployed + Inactive Rate = Unemployed Employed + Unemployed 14.3%

Unemployment proportion Luxembourg Spain Ireland UK France Italy Germany Unemployment rate Germany Spain Ireland Italy France UK Austria EU EU – Differences across Europe

GCSE A level Degree January to December 2011 Unemployment proportions for young people not in full-time education Unemployment by qualification 13% 7% 5%

Focus on Employment not in education Until 2004, similar employment rates to those aged 25 to 64 Education impact More young people chose to stay in education mainly at expense of employment Per cent not in educationAll aged Recession effect Recession impacted on young people more than experienced workers 74.9 per cent 66.0 per cent27.2 per cent in education

Elementary Occupations Process, Plant & Machine Operatives Sales & Customer Service Personal Service Occupations Skilled Trades Occupations Administrative & Secretarial Professional & Technical Professional Occupations Managers & Senior Officials In full-time education (92% work part-time)Not in full-time education (25% work part-time) Types of jobs

Focus on Employment Men and women Similar employment rates for all men and women aged 16 to 24 Full-time education Women in full-time study are more likely to be working than men Not in education Some young women leave the labour market and look after a family – employment rate is lower than for men Per cent All aged 16-24In full-time education Not in full-time education MenWomen 49.6%49.8% 23.1% 31.2% 67.9% 64.0%

Focus on Earnings 16 to 24 year olds Average wage of £7.01 per hour Professional occupations Highest average pay at £13.39 per hour 25 and over Earn an average of £12.00, so year olds earn 42% less Elementary occupations Process, plant and machine Sales and customer service Personal service occupations Skilled trades occupations Administrative and secretarial Associate professional and technical Professional Occupations Managers and senior officials All £/hour

1.06m 1.50m Number of graduates ,000 1,500 2, Thousands 2001 to 2011 Increase of 41 per cent in the number of recent graduates Recent graduates Those who have graduated within 6 years of their survey interview, aged 21 to 64, and are not currently enrolled on a course

64% 36% 27% 73% Per cent Types of jobs Lower skill - Jobs generally require competence attained through compulsory education Skill level of jobs Higher skill – Jobs generally require competence attained through post-compulsory education. Lower skill Higher skill

86% 72% Per cent Focus on Employment Graduates Recent graduates - higher employment rates up to the start of 2008 recession Non-graduates Tend to have higher levels of inactivity and unemployment – older demographic Recent graduates All graduates Non-graduates

Per cent 9.1% Focus on Unemployment New graduates Have the highest unemployment rates – just starting to look for work Recession impact New graduates affected most – starting to look for work when the economy was weak 0 to 2 years ago 2 to 4 years ago 4 to 6 years ago Less than 6 years ago

All graduates - £15.18 Non graduates - £8.92 £21.29 £12.06 Earnings by subject Arts Humanities Medical related subjects Librarianship and languages Biological and agricultural sciences Social studies Law Education Business Medicine and dentistry Physical or environmental sciences Mathematical sciences, engineering, technology and architecture £ per hour