Liverpool is closing graduates gap, but needs more private sector jobs

Date: 30/10/2009

A new report from the Centre for Cities has found Liverpool is closing the gap between the number of graduates in its workforce, and the share in other major UK cities. 

But attempting to retain local university leavers in Liverpool after they graduate is a distraction.  Instead, Liverpool needs to focus its efforts on creating more private sector graduate-level jobs.

Between 1995 and 2008 the percentage of graduates in Liverpool's workforce jumped from 14% to 23%.  Liverpool saw the highest increase of any major city outside London.  Over the past decade (1995-2008), Liverpool narrowed the gap between its working age graduates and the Core Cities' average by a third.

Share of graduates in labour force for London and Core Cities

Source: Nomis, Labour Force Survey Annual, 2009; Nomis, Annual Population Survey, 2009

But the Centre for Cities report is calling for Liverpool to drop its current plans for a target to encourage local university leavers to stay put after they graduate.  Cities have little influence in the short term over whether graduates stay or leave.  University leavers will move to where the best jobs and highest earnings are.

Instead, the Centre for Cities is recommending that Liverpool focuses its efforts on supporting more graduate jobs.  This means building on the economic boost provided by European Capital of Culture and the successful regeneration of the city region over the past decade by encouraging greater entrepreneurship, attracting more business investment into the city and supporting innovative growth industries such as digital media and bio-tech.

Dermot Finch, Chief Executive of the Centre for Cities said,

"Graduates across the UK are highly mobile.  They move to where the jobs are - and where they can maximise earnings.  Liverpool has done well to increase the share of graduates in its workforce.  The city now needs to generate more private sector graduate jobs."

Liverpool City Council leader Councillor Warren Bradley said:

"We welcome the report as it reinforces a lot of the work we are doing to attract new investment and employment to Liverpool in the key, growth sectors of the British economy. Our ambitions are to create a high-skilled and well paid economy and rapidly raise the skill levels of the workforce. Our schools are delivering the best ever results and almost a quarter of the workforce are now graduates - the biggest rise of any city outside London. But we can - and will - do better.

"The investment we have secured in new industries such as biosciences, research, the creative and digital industries and the cultural sectors has helped boost the regional economy and has put in a strong position as we emerge from the recession.

"More than 17,000 students graduate from the city's universities each year and many want to stay and work in Liverpool. We share their confidence in Liverpool and are working extremely hard to create the high-tech, highly skilled economy vital to our future prosperity."

John Flamson, Director of Strategic Partnerships and Development, University of Liverpool said,

"The University welcomes the report.  It is important that we do all we can to increase higher level skills in the city region in order to grow the knowledge economy.  We are pleased that the report recognises that this is not simply about imposing graduate retention targets.  We need to work collectively to stimulate demand for higher level skills and to shape patterns of supply that meet the needs of the graduate community and the workforce."

NOTES TO EDITORS

A full copy of Growing by degrees? High skilled workers in Liverpool, by Chris Webber and Kieran Larkin is available upon request at  www.centreforcities.org/liverpool

Liverpool is a Partner City in the Centre for Cities research programme.  The programme is working closely with a small group of cities, including Birmingham, Liverpool, Southampton and Portsmouth.  The Centre for Cities works with these cities to inform their economic development strategies and improve economic performance.

The core cities are the eight largest cities outside London including Liverpool, Birmingham, Bristol, Leeds, Manchester, Newcastle and Nottingham, Sheffield.

The report uses the name Liverpool to refer to the Liverpool city region. Unless stated otherwise all statistics refer to the Liverpool city regional area. This includes Liverpool, Sefton, Wirral, St.Helens, Knowsley and Halton.

For more information, please contact:

Rosamund Taylor, Centre for Cities

Tel  07876 175 426 / 020 7803 4316

r.taylor@centreforcities.org