UK employer demand for grads remains strong

20 Apr 2022

Demand for graduates from employers in the UK has risen significant in recent years and remains strong, according to a report by Universities UK (UUK) entitled ‘Busting graduate job myths.’ The findings analyse the misperceptions that there are too many grads in the UK, but also a lack of job opportunities.

What does the report indicate?
The conclusions show that demand is forecast to rise in the future due to there being a skills shortage in Britain. At the end of 2020, there were over 15 million people with degrees working in Britain, with close to 16 million positions in grad-level jobs. These findings are backed up by OECD data showing that although 14% of the UK’s workforce are overqualified for their present jobs, over 27% are deemed “underqualified” including non-graduates filling graduate-level roles, reports The Guardian.  

High demand
Demand for graduates stayed high during the Covid crisis, according to the Institute for Student Employers. These findings show grad vacancies are now 20% higher than pre-pandemic levels in 2019, and job vacancies for graduates are forecast to rise again in 2022 by 22% compared to last year. According to Professor Steve West, UUK’s president and the vice-chancellor of UWE-Bristol, said: “Despite some questioning the value of graduate skills, this report shows that employer demand for UK graduates is significant – it has increased year on year and is likely to grow in the future.” He added: “It is important that the UK government develops the right conditions for universities to fully support business growth and skills development for learners of all ages. To be clear, this means that the UK government must invest in a sustainable long-term funding solution for higher education.” Furthermore, England’s higher education minister, Michelle Donelan said the findings “show just how important higher education and skills are for the UK’s future,” and the government is “taking forward the biggest reforms to post-18 education in a decade” in England. “We aim to further improve graduate outcomes and continue to drive up quality to deliver the highest-quality education for students from all walks of life,” she added. 

Investing in skills
Meanwhile, investing in skills is essential for the country’s pandemic recovery, according to Senior Policy Advisor at the Institute of Directors, Alex Hall-Chen, as employers maintain labour and skills shortages are the key factors negatively impacting businesses. “Demand for graduate skills among employers remains strong – particularly in transferable employability skills such as critical thinking, communication, and leadership – and the higher education sector will be an essential component in meeting the UK’s rapidly changing skills needs,” Hall-Chen said.