Jobs Market: Graduates

Debate between Lord Londesborough and Baroness Barran

Monday 27th November 2023 Lords Chamber

[Lord Londesborough]

To ask His Majesty’s Government what assessment they have made of the jobs market for graduates, and whether this assessment points to a mismatch between skills and vacancies.

[The Parliamentary Under-Secretary of State, Department for Education (Baroness Barran) (Con)]

My Lords, one-third of vacancies in the UK are due to skills shortages. The Government want to develop a world-leading, employer-focused, high-quality skills system that is fit for the future. Our higher education sector delivers some of the most in-demand occupational skills with the largest workforce needs, including training of nurses and teachers. The DfE published graduate labour market statistics showing that, in 2022, workers with graduate-level qualifications had an 87.3% employment rate and earned an average of £38,500. Both are higher than for non-graduates.

[Lord Londesborough (CB)]

I thank the Minister for her detailed response, but the fact remains that we have swathes of overqualified graduates in jobs not requiring a degree. Outside London, that number has now risen to 42%, and in many regions it is more than half. Graduate vacancies are falling steeply, as is their wage premium, and students have now racked up more than £200 billion of debt, much of which will never be repaid. How do the Government plan to respond to the damaging mismatch between skills and vacancies?

[Baroness Barran (Con)]

I thank the noble Lord for his supplementary question. I recognise some of the points that he makes about the regional differences in graduate opportunities. However, on our wider skills strategy, the Government have introduced the lifelong learning Act, which will offer students the ability to reskill and upskill over their lifetimes. We are investing in skills at all levels and also focusing on making sure that the quality of all degrees is as high as can be.