A recent study from the University of Liverpool looked at how UK graduates are finding jobs after university. They found that there’s been a big drop, almost 30%, in the number of graduates getting jobs right after finishing their studies, comparing those born in the late 1970s to those born just ten years later.
The study also showed that people born in the late 1980s who didn’t go to university were having a rougher time starting their careers. They were almost twice as likely to face challenges like unemployment, part-time jobs, or periods of not working, compared to people born in the 1970s.
Post graduate employment
The researchers looked at data from two big surveys, The UK Household Longitudinal Study and the British Household Panel Survey. They followed 1,860 people from three different groups: those born in the late 1970s, the early 1980s, and the late 1980s. The study tracked them for ten years after they finished school, from ages 16 to 26.
What they found was that the younger group born between 1985 and 1990 had a tougher time finding stable jobs. Even if they eventually found good careers, their journey was bumpier, reflecting the uncertain job market. This shift suggests that traditional career paths are changing, with more varied experiences along the way.
“Our findings suggest that the distinctive British early transition from school to work, whereby the majority of British young adults go straight from compulsory schooling into the workplace, was still prevalent among those born in mid-1970s and 1980s,” the researchers explain.
“However, early employment experiences have become more complex, diverse and precarious with periods of unemployment, part-time employment, and inactivity becoming an integral part of the early labor market experience.
“It is striking that nearly all young people born in late 80s have experienced some sort of instability during their school-to-work transition, even those who would ultimately be considered successful in their careers a decade after finishing school.
“Our findings fit with wider research that shows millennials are reaching milestones once considered to be the markers of adulthood, such as marriage, home ownership, and stable employment, at a later stage than earlier generations.”
Poor payoff
The research discovered that even though younger generations were spending more time in education or job training, stepping into the workforce remained tough. What’s more, those coming from less privileged backgrounds were finding it harder to land professional or managerial jobs compared to their more well-off peers.
Despite efforts in the 1990s and 2000s to make university education more accessible to disadvantaged individuals, the study revealed that even with degrees, those from lower socio-economic backgrounds were facing rockier paths into employment. Many struggled to find fitting jobs after finishing their studies and ended up settling for positions that didn’t match their qualifications.
The study highlighted a persistent cycle of disadvantage, with 13% of those surveyed experiencing long periods of economic inactivity or unemployment, some lasting up to seven years. Particularly, individuals from disadvantaged backgrounds were more likely to end up in low-skilled jobs or endure extended periods of unemployment.
Gender differences
Gender also played a significant role in the transition from school to work. Female graduates were most prone to encountering bumpy transitions, often spending longer periods in part-time roles or inactive phases.
“Strikingly, more than 65% of the young women in the sample who faced precarious career paths had given birth before the age of 20,” the researchers say. “This highlights the need for a more nuanced understanding of female career trajectories, especially for those without the benefit of higher education. Addressing the unique challenges women face, from balancing work and family responsibilities to overcoming entrenched biases, will be crucial if we are to make meaningful progress in closing gender imbalances.”
Considering the ongoing trends in the labor market and the economy, it’s probable that the transitions from school to work for Generation Z will mirror the diversity, complexity, and turbulence seen among millennials—and perhaps even pose greater challenges.
In essence, the study suggests that young people will require broader societal and governmental assistance to navigate a successful entry into the job market. This includes addressing the diminishing availability of full-time entry-level positions and the absence of well-defined career pathways from entry-level to higher-level roles.