New report shows that many UK graduates are in jobs that do not require a degree
New report shows that many UK graduates are in jobs that do not require a degree
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42% of university-educated workers outside London work in a job that does not require a degree, up from 31% in 1993. The share is highest in Lincolnshire and Cumbria, where more than half of graduates work in non-graduate jobs (58% and 52%, respectively). These are among the findings of a new report by the Institute for Fiscal Studies that examines the geographical implications of long-term trends in the labour market.
It finds that the national decline in traditionally middle-paying occupations, and the relative rise in both low- and high-paying occupations – often referred to as ‘hollowing out’ – has played out very differently across the country.
The occupations that have grown most since 1993 are either in low-paid services such as social care, childcare and hospitality, or in high-paid services such as IT, business and finance but whilst the low-paid service jobs have grown everywhere, the new ‘high-end’ jobs mainly emerged in London.
Employment in high-paying occupations has grown by 95% nationally since 1993. But the growth was 240% in Inner London and just 41% in Cheshire.
Meanwhile, the number of graduates expanded evenly across the country. With graduate numbers rising everywhere but graduate jobs increasingly concentrated in London, this means that many graduates in other parts of the country are unable to fully capitalise on their education.
Previous research shows that graduates from poorer family backgrounds are much less likely to move to London. This group – who have invested in higher education but don’t tend to move – are perhaps the most negatively affected by long-term labour market trends.
The share of graduates in non-graduate jobs in London remained fairly stable over the last three decades (at 37%–38%) but rose virtually everywhere else. This is consistent with other research showing a fall in the graduate wage premium outside London.
Another important labour market trend in recent years is the outsourcing of low-paid work to specialised agencies. Cleaners, security guards and kitchen staff are increasingly subcontracted to firms specialising in these services rather than employed in-house. In 2011, 22% of workers in ‘elementary’ occupations were in ‘occupationally segregated’ workplaces where elementary occupations made up over 85% of all employees, compared to 11% in 1998. The prevalence of agency work has continued to rise since 2011.