A new report – Busting graduate job myths – published by Universities UK reveals strong employer demand for graduates whose future job prospects continue to look bright.
The report found that there are one million more professional jobs than workers with degrees in the UK to fill them, that double the number of UK employees underqualified than overqualified, while Artificial intelligence (AI) is set to increase graduate demand further with healthcare, IT and marketing expected to see particularly steep rises.
ONS data reveals the number of UK workers in professional jobs has risen from 11.1 million to 15.9 million since 2004, but there remains almost one million more professional jobs than workers with degrees in the UK to fill them.
The number of graduate vacancies is now 20% higher than in 2019 before the Covid-19 pandemic, reports the Institute of Student Employers (ISE), with job vacancies for graduates expected to increase by more than a fifth (22%) in 2022 compared to 2021.
The report shows that in 2020 the number of UK workers in professional level employment rose by 647,200 and those in other roles fell by 817,000 during the pandemic, and other ONS data reveals graduates were also less likely to be furloughed or in non-graduate jobs because of the impact of Covid-19.
Meanwhile, the Organisation for Economic Co-operation and Development (OECD) estimates that while 14% of the UK workforce is overqualified for their current role but almost twice that number, 27.7%, are underqualified – the second highest level of the entire OECD, behind Ireland.
Future demand for graduate skills looks strong – a recent analysis by PWC suggests that Artificial Intelligence will increase demand for graduates by about 10% with those in healthcare, IT, and marketing in greatest demand.
Professor Jane Robinson, Pro-Vice-Chancellor Engagement and Place, Newcastle University who co-chaired the report committee said: “Our report shows that demand for UK graduates among employers has grown each year and as we recover from the Covid-19 pandemic this is likely to continue.
“Employers and graduates recognise the skills they develop at university – in particular transferable skills such as leadership and critical thinking – are vital to help business flourish. Our highly skilled students have a positive impact on our economic, social and cultural wellbeing and are vital if we are to achieve levelling up.”
