2 July 2010
Graduate unemployment could hit 20% as a result of the huge public sector cuts, researchers have claimed.
The Higher Education Careers Service Unit said that last year graduate employment stood at 7.9% – around 22,000 graduates. More degree-educated workers enter the public sector than the private sector, so the HECSU expressed concern that cuts will adversely affect graduates more than other groups.
Charles Bull, deputy research director at the HESCU, said: ‘There are around 39,000 “non-frontline” public sector jobs taken by UK-domiciled graduates annually. I don’t expect them all to be lost, but they don’t need to be to have a significant impact. Even if only a fifth of them were to go and not be replaced, then that would more than double graduate unemployment for the cohort affected in one fell swoop. That would put graduate unemployment over 20% and pushing towards 25%.’
He warned that regions that rely heavily on public sector employment could suffer from educated local residents leaving the area: ‘The loss of a significant proportion of the local graduate labour market could have dire effects on these regional economies, and some of those worst affected could be those with the weaker local economies.
‘This suggests that job cuts could drive educated young people away from regions that need to retain them and into the capital, in search of work.’
Mike Hill, chief executive of the Graduate Prospects careers service, said: ‘Graduates tend to come out of recession quicker and are in the best position to take advantage of new opportunities, but the public sector cuts will have a severe effect. Ultimately they could destroy any signs of recovery, putting it into reverse.’
