Graduate unemployment rates lowest for seven years

UK graduates are at record levels, enjoying the lowest rates of unemployment for seven years and earning more than ever before, according to the latest What Do Graduates Do? 2008 report, published today by the Higher Education Careers Services Unit (HECSU).

The survey tracks the initial career destinations of the 2006 first degree graduating cohort (209,245 respondents) across employment market, type of work and subject of study six months after they left university. Headline findings include:

6.0 per cent unemployment ñ the lowest rate since 2000

Total UK- domiciled graduates with first degrees up by 2.6 per cent to 263,050

71.9 per of graduates working or combining work and study six months following graduation

Strong rise in average starting salary from 17,715 to 18,501, rising to 22,781 for economics graduates

Notable falls in unemployment in environmental science and mathematics

2.5 per cent drop in unemployment for geography graduates, now at lowest level for 17 years

Highest gain in graduate numbers in architecture and building, psychology, law, sports science and history

Highest fall in graduate numbers in IT and computing

Sharp decline in chemistry graduates over past ten years from 3975 to 2275

Health sector continues to be most popular destination for graduates, followed by management and business and finance

Social and welfare professions experienced largest relative increase in graduate number, up by 0.5 per cent to 3.7 per cent

The What Do Graduates Do? 2008 report reveals that, at 6.0 per cent, graduate unemployment amongst the 2006 cohort is at its lowest rate since 2000, while the total graduate population has risen to record levels with a 2.6 per cent increase on 2005. Around seven in ten, 71.9 per cent, of graduates were working or combining work and study, with a further 13.8 per cent going onto further study, signalling the healthiest climate for graduate employment for many years.

Graduates of environmental science and mathematics fared particularly well, with unemployment falling by 1 and 1.2 percentage points respectively. The unemployment rate for geography graduates fell by 2.5 percentage points to stand at 3.8 per cent, lower than at any time in the past 17 years and surpassed only by architecture and building and civil engineering, which each stood at 3.4 per cent.

ìWith recent news raising concerns about the geography knowledge of young people in the UK and a huge increase in environmental awareness, this is a timely reminder that the subject is in strong demand from employers,î comments Charlie Ball, HECSUís labour market analyst and author of the report.

Graduates from the class of 2006 are also enjoying a significantly higher starting salary, with an average increase in pay from 17,715 to 18,501 rising to 22,781 for economics graduates

Graduate numbers rose steeply across many subjects, led by architecture and building (765 more graduates) and closely followed by psychology (up by 720 graduates). There were also strong gains in law (590) and sports science (565).

While they may enjoy higher remuneration, with an average starting salary of 19,589, IT graduates have a comparably tougher time in securing jobs. Unemployment stood at 10.4 per cent, slightly lower than the previous year, reflecting the continuing difficulties faced by the IT and computing sector.

Electrical and electronic engineering, English, business and management and chemistry also experienced a fall in graduate numbers. Chemistry, in particular, has seen a sustained decline in graduates over the past ten years, with numbers plummeting from 3975 to 2275 in 2006.

Jobs in health continue to be the most popular career destination for graduates, attracting 13.3 per cent of the total graduate population. Business and management also retains its appeal, with 9.6 per cent of graduates pursuing a career in management and 8.1 per cent employed in business or finance.

Social and welfare professions are benefiting from the largest relative increase in graduate influx, up by 0.5 per cent to 3.7 per cent.

The report reveals another sharp fall in the number of graduates entering non-graduate clerical and secretarial positions down from 11.7 per cent in 2005 to 10.4 per cent in 2006.

ìMany graduates use clerical and secretarial roles as a stepping stone into a chosen career path and as a result they tend to pass quickly out of them once theyíve gained the skills, experience and contacts to progress,î explains Ball.

The proportion of graduates working in retail and associated jobs also fell in 2006.

ìOverall the report paints a very positive picture of career prospects for UK graduates, with the best chance of employment for many years,î says Mike Hill, chief executive of HECSU.

ìWe have record numbers of graduates successfully pursuing a wide variety of career options, not necessarily related to their degrees, with big gains across many subject areas. Once again, these findings underline the value employers attach to a degree.î

What Do Graduates Do? is published in collaboration with the Association of Graduate Careers Advisory Services and the Universities and Colleges Admissions Service and aims to provide a guide for Year 11 and 12 students, parents and careers advisors on the potential initial employment prospects provided by different degree subjects.