Tough times ahead for public sector gradutes in government spending squeeze

Date: 30/10/2009

Recent UK graduates will be particularly exposed to dwindling public sector job opportunities in an era of reduced government spending. 

The Centre for Cities has found that over half of all recent UK graduates work in the public sector.  Six months after completing their studies, 52% of all recent UK graduates work in public service positions*.  Nationally, 27% of the overall workforce is employed in the public sector.

Public sector employment amongst higher education leavers (2007/08)

	Total leavers	Entering public sector	Percentage entering the public sector
Postgraduates	57,540	38,475	67%
First degree graduates	153,035	63,025	41%
Other undergraduates	36,135	25,960	72%
Total higher education leavers	246,710	127,460	52%

Source: HESA, Destination of Leavers from Higher Education, 2009

A recent report from the Centre for Cities identified that:

• Up to 290,000 public sector positions in the UK could be lost by 2014

• 69% of the 1.2 million jobs added to city economies between 1998 and 2007 were public sector positions

• One in four workers are employed by the public sector across UK cities

The Centre for Cities warns today that, in the years to come, there will be fewer public sector job opportunities for recent graduates.  And unless more highly skilled jobs can be generated in the private sector, cities will continue to see graduate unemployment rise.

Graduates from Tyne and Wear, Greater Birmingham and Leeds universities have seen the largest increases in unemployment this year.  Graduate unemployment from Tyne and Wear universities has nearly doubled over the past twelve months.

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

"In a public spending squeeze UK graduates will continue to find it tough to take their first step on the employment ladder.  The public sector will not drive graduate jobs growth over the next decade.  This means more private sector job opportunities will be needed to bridge the gap."

For more information, please contact:

Rosamund Taylor, Centre for Cities

Tel  07876 175 426 / 020 7803 4316

r.taylor@centreforcities.org

NOTES TO EDITORS

*For UK domiciled leavers in 2007/08, 52% of all higher education leavers, including postgraduates and other undergraduates (e.g. Foundation degrees and Diplomas of Higher Education) worked in public administration, education and health six months after graduation.  41% of first degree graduates worked in public administration, education and health six months after graduation. 

Graduate unemployment increases (2006/07 - 2007/08)

City region	Unemployed First Degree graduates
	2006/07	2007/08	Increase
Tyne & Wear	4.2%	8.1%	4.0
Birmingham	5.5%	8.3%	2.7
Leeds	5.9%	8.6%	2.7
Sheffield	5.5%	8.0%	2.5
Nottingham	3.3%	5.7%	2.3
Liverpool	5.2%	7.4%	2.2
Manchester	7.6%	9.8%	2.2
Bristol	5.0%	7.1%	2.1

Source: HESA, Destination of Leavers from Higher Education, 2009

Graduate unemployment refers to the activity of graduates six months after graduation, for graduates of a university in that city region

NB: Due to rounding, the percentage point change may not match the difference between year values shown."

• In 2009 22,500 applicants applied for all the Civil Service Fast Stream programmes, up from 16,858 applications the year before.

• By September 2009 59,811 people in England, Wales and Scotland had applied to teacher training courses - this was a 21.5% increase on 2008 (49,212) (Graduate Teacher Training Registry 2009 Applicant Statistics)

The findings on graduates and public sector employment build upon Centre for Cities' Public Sector Cities report, by Kieran Larkin on the future for public sector employment across UK cities in a government spending squeeze.  The report is available for download at www.centreforcities.org/publicsectorcities

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