AGCAS Biennial Conference 2009, Brunel University, Uxbridge Thursday 10th September 2009 Gordon McKenzie

Graduate Labour Market transitions before the downturn Source: Labour Force Survey, DLHE and Longitudinal DLHE, covers all graduates Notes [1] At the 3 month stage it is not possible to distinguish between graduate and non graduate level jobs in a way that is consistent with the DLHE data. [2] This includes individuals who may be on or about to start postgraduate courses The not available for work category covers those recorded as permanently unable to work or retired, those taking time out in order to travel, those temporarily sick or unable to work and those looking after the home or family.

Graduate Labour Market in recession : What’s going on? (1)  What happened in the recession of early 1990s ?  Employment rate of young graduates fell by 6.5 percentage points between ;  Employment rate of these graduates began to recover from 1994,  Employment rate recovered more than the rate for people with lower qualifications:  Leading indicators:  AGR, High Fliers survey  Labour Market outcomes for 2008 graduates

Graduate Labour Market in recession : What’s going on ? (2)  Data suggests the graduate labour market is following a similar pattern to the previous recession where younger people in the graduate labour market suffer to a greater extent than older members.  There appears to be been a sharp decline in employment for the 2008 First Degree graduates in Quarter  Of those who gain employment similar proportions are in graduate level jobs as before the recession.

Policy Response - Overview  National Economic Council  Graduate Labour Market entrants in context – relatively more advantaged than other young people ;  Best Outcome is a job – therefore information, advice, guidance & support is crucial.  For those who can’t find work – opportunities to build employability skills.  Economic Challenges Investment Fund.  Office of Graduate Opportunities  Graduate Employment Forum  Backing Young Britain

Policy Response - some Details  Economic Challenges Investment Fund  3,000+ places for entrepreneurship training and for help with business start ups  2,800 internships / placements  Enhanced & expanded careers service support  Post Graduate study  Professional and Career Development  Mini Knowledge Transfer Partnerships  Volunteering

Policy Response - Internships  7,500 Graduate Internships so far (including ECIF)  Around 70% paid (including ECIF)  4,000+ vacancies on Graduate Talent Pool  Around 50% of Graduate Talent Pool Vacancies paid  Most unpaid vacancies are with charities, BBC, & ITV  Expect to reach 10,000 internship places by end October  Backing Young Britain set new target of 15,000 by end of March 2010

Attitudes to Internships ParentsPublic Base: All graduates (624), All parents (151), All public (850) There is very strong support for the value of internships across all groups. As a means of helping graduates get on in work, internships are the most highly ranked of those tested (voluntary work, post-graduate study, working abroad, or travel). Russell Group students are markedly more strongly positive about internships (57% strongly agree) and Post-92 students least positive (41% strongly agree) There is some prejudice in favour of internships offered by ‘blue chips’ but this would be a barrier for a minority only. Graduates

Gordon McKenzie Director Department for Business, Innovation & Skills