Seismic changes in industry mean UK needs more graduates to grow
Tony Blair famously listed his top three priorities for Labour as “education, education, education”, before setting a target in government that half of our young people should go to university.
More than 20 years later, we’re nearly there, at the 49 per cent mark in England.
Later this month, many school leavers will receive their A-level results. Those heading to university can take heart from evidence published today showing employer demand for recruiting graduates remains high and is set to rise further. Employers have told the CBI that they expect the greatest demand over the next five years will be for people with higher level skills.
We’re facing seismic changes to our lives through the Fourth Industrial Revolution – automation, artificial intelligence and digital technology.
Most children starting school now will ultimately work in roles that currently don’t exist. The learning and analytical skills students develop at university, across all subjects, mean they can quickly adapt to rapid changes in the employment market. Their communication, problemsolving and team-working skills will continue to be sought by employers, whichever career path they take.
Now is the time to aim higher. The UK economy and society increasingly needs more highly skilled graduates.
Growing the number of university graduates would boost productivity, economic growth, competitiveness and innovation. Many of our international competitors are already way ahead. In Canada, Japan and South Korea, at least 60 per cent of young people benefit from higher education.
By 2030, it is estimated that there will be a UK talent deficit of between 600,000 and 1.2million workers for both our financial and business sector and our technology, media and telecommunications sector.
More graduates is not only good for the economy. A university education transforms individuals’ lives. Research shows that, on average, graduates are happier, healthier and wealthier than those that do not go to university. Studies show that graduate salaries are, on average, almost £10,000 a year higher than for non-graduates. Graduates are also significantly more likely to be in employment than those with lower qualifications.
A degree can be life changing. There should be no limits on student numbers. Yet some still argue that we need fewer graduates. Talk of higher education expansion irks those who hark back to the days when university was for the privileged few. These views are elitist, regressive and contrary to the future needs of the nation and individuals.
Around 41 per cent of courses currently offered by universities have a technical, professional or vocational focus. Whilst these play an important part in meeting skills needs, the wider transferable skills and work experience, which universities provide in abundance, should not be underestimated.
There is rising demand for the broad skills developed at university across a wide range of subjects and levels from HNDS through to postgraduate study. Strong employer demand for graduates is not just confined to science, maths and technical subjects. English language, history, languages, philosophy, and management are linked with occupations projected to see a rise in jobs.
Our education system isn’t perfect. We need to build on the excellent partnerships between colleges and universities, improving transfers and progression between the two. Incentivising closer links with employers, particularly small and medium sized businesses, would help to ensure that our education system is meeting the needs of employers.
Tackling the falling numbers of part-time and mature students among our ageing population must be a priority. The future workforce needs to be creative, resilient and committed to lifelong learning. Government must work with universities to develop policy to make flexible and part-time study more accessible and appealing, enabling more people to dip into and out of education, as needed, to help tackle the skills gap and encourage lifelong learning.
There are clear benefits in further expanding the number of university graduates. In the modern age, Blair’s target now looks frankly unambitious.
The modern economy will be driven by the highly skilled. If the UK is to retain a competitive advantage on the global stage post-brexit we must encourage and support more of the population through higher level study.
It’s good for individuals, our economy and society.