University 'not worth it anymore' as graduates find no jobs

University 'not worth it anymore' as graduates find no jobs Experts say the number of graduate jobs available has plummeted in less than a decade Graduates face the worst jobs market on record as vacancies plunge 45% with experts warning "university hasn't been worth it for a long time". The number of graduate vacancies advertised across the UK dropped by 45.6% in the year to July, falling to just 8,383, according to recruitment firm Adzuna. The figure is below the previous record low recorded in May and highlights the continuing deterioration in opportunities for university leavers. The decline has been dramatic over the longer term. In the middle of 2017, there were more than 55,000 graduate positions available, compared with fewer than 10,000 today. It comes as 262,820 18-year-olds prepare to start degree courses after securing university places following this month’s A-level results, raising questions about the employment prospects awaiting them when they graduate. Some of Britain’s biggest employers have already reduced their graduate recruitment. The Big Four accountancy and consultancy firms have been among those cutting back, with KPMG reducing its graduate intake from 1,399 in 2023 to 942. Lukas Kaminskis, CEO of Turing College, said: “The graduate jobs market is being squeezed from both sides. Businesses are cautious about adding headcount while costs including higher employer National Insurance contributions and energy bills affect profits. “At the same time, AI can increasingly perform some of the routine work that traditionally gave graduates their first step onto the career ladder. This does not mean there will be no jobs for young people, but it does mean a degree alone is becoming less of a guarantee of employment. “The uncomfortable truth is that too many graduates are leaving university with academic knowledge but without the practical digital skills employers can put to use from day one. Technology is changing jobs faster than many traditional degree courses can keep pace, leaving young people qualified on paper but underprepared for the workplace they are entering. “This is also why apprenticeships and other work-based routes deserve much more attention. They allow people to learn while working, develop skills an employer actually needs and finish with experience as well as a qualification. University will remain the right choice for many, but in a job market changing this quickly, we need to stop presenting a traditional three-year degree as a guaranteed route into a successful career.” David Belle, founder and trader at Fink Money, questioned whether university was a legitimate route anymore. He added: "University hasn't been worth it for a long time. It has become an industry in itself where administrative staff have received higher wage increases than faculty for four years in a row. It sounds to me like there is excess administrative bloat while quality of output is declining. "Furthermore, the amount of universities in the UK is excessive. With all due respect, there is little point doing sociology at the university of Sunderland if you are looking to get a well paying job at the end of it." Kelly Smallcombe, fractional chief people officer at Meliorem HR Consultancy, said "a degree shouldn't be the automatic default". She added: "These figures aren't really about graduates, they're about risk. Employers have always had the option to let an underperforming graduate go; stronger employment rights make that harder, so many are simply not hiring them at all. That won't help the graduates already job-hunting, but it should make anyone considering university pause. "Unless you're heading into law, medicine or another licensed profession, a degree shouldn't be the automatic default. Apprenticeships give young people real work experience, which is increasingly hard to come by, without the debt most graduates carry for life. Lower risk for the employer, lower risk for the young person too." Paul Denley, CEO at London-based Oakham Wealth Management, said skills and experience were just as important as university now. He added: "The numbers are grim, but they don’t mean university is worthless. They mean the calculation has changed. A degree is no longer a golden ticket to a graduate job; it is one route among several, and often the slowest and most expensive. AI is an important part of the story. "The research, drafting and data-crunching traditionally given to graduates is precisely the sort of work firms can increasingly automate. Higher employment costs and a weak economy add to the pressure. Young people should think about skills and experience, not simply credentials. "A good apprenticeship offers earnings, qualifications and a track record from day one, without student debt and its 9% additional marginal repayment rate above the threshold. University remains essential for some careers and valuable for many others. But it should be a considered choice, not the default. Pick the route by the destination, not the tradition." Riz Malik, Independent Financial Adviser at Southend-on-Sea-based R3 Wealth, said many students were landed with high debt, too. He added: "I understand that many 18-year-olds want that university experience, but do they really appreciate the cost that comes with it, and how long the debt they saddle themselves with will loom over them? Unless a degree is necessary for your dream job, seriously consider an apprenticeship if one is available. "When your friends graduate, you will have had three years of work experience with salary and benefits to boot. Many employers would prefer that person over a newly qualified graduate."