Government Urged to Address Higher Education Funding Amid Economic Uncertainty

Graduate Labour Market Report Reveals Increased High-Skilled Employment, but Challenges Persist

The latest graduate labour market statistics for 2024, published by the Department for Education, confirm that the graduate employment rate has remained stable at 87.6%, consistent with the previous year. More positively, the high-skilled employment rate has seen a 1.1% increase, reaching 67.9%, while the nominal median salary for graduates has risen from £40,000 in 2023 to £42,000 in 2024.

While this suggests that higher education continues to align with industry needs and government priorities, experts caution that financial pressures on universities pose a significant risk to long-term sustainability. Rising operational costs, declining international student numbers, and employment tax increases have forced institutions to consolidate resources and provisions, making future growth increasingly challenging.

Furthermore, economic uncertainty and restricted resources could impact universities' ability to maintain progress in high-skilled employment outcomes. Specialists argue that institutions require greater flexibility in managing course portfolios to adapt to shifting government policies and evolving industry demands. In response, universities have remained focused on financial sustainability and business transformation as key strategies to mitigate potential deficits.

Recognising the role of universities within its Industrial Strategy, the government acknowledges their contributions to research, development, and innovation (RDI) across major growth-driving industries. However, university leaders emphasise the need for clearer policies to support education and research in boosting national productivity and long-term growth. They also seek greater assurance that academic programmes remain relevant, industry-aligned, and financially accessible for undergraduates. With the Government Spending Review and Industrial Strategy expected next week, education stakeholders urge policymakers to deliver a comprehensive framework that safeguards academic and financial stability, ensuring that graduates continue to succeed in an increasingly competitive labour market.

Editor’s Note:

The latest data on graduate jobs shows some stability, with a small rise in high-skilled employment. However, it also highlights serious financial challenges facing universities. Without strong government support and clear policies, it may be hard for universities to keep improving job outcomes for graduates. Rising costs, fewer international students, and higher employment taxes are putting heavy pressure on universities. Many are being forced to cut back, which could hurt the quality of education and the skills students gain, skills that are crucial for meeting industry needs. Even though the government recognises the important role universities play in growing the economy, clear direction is needed to make sure education and research continue to support productivity and growth. Without a solid plan, the future of graduate jobs, especially in high-skilled fields, is uncertain.

Skoobuzz highlights that as the Government gets ready for its next Spending Review and updates to its Industrial Strategy, it must act quickly to support universities. Proper funding and support will help prepare students for today’s changing job market.