Latest news: Graduates stay in work

People with university degrees are more likely to stay in work, according to a study by the Organisation for Economic Co-operation and Development (OECD). 26/09/2011

Across the countries involved in the OECD’s research, the study found that 4.4% of university graduates were unemployed in 2009 compared to 11.5% of people who had not completed secondary education.

‘Despite strained budgets, governments must keep up their investment to maintain quality in education, especially for those most at risk. Investment in education is not only about money, it’s also an investment in people and an investment in the future,’ said OECD secretary-general, Angel Gurría.
The research indicates that as the number of graduates has increased, so has graduate earnings. Across the countries involved in the study, the number of 25 to 64-year-olds educated to university level has risen from 21% in 1999 to 30% in 2009.

The wider benefits of university education to the UK are more significant than the cost to the public purse. The report suggests that education benefits the general public as well as the individual. Especially in the UK where even tertiary graduates generate higher income tax and social contributions that far outweigh the public costs.

The report went on to suggest that more help needs to be in place for younger people generally, with the unemployment rate for people between the ages of 15-24 at 17.4% in the OECD area. It is believed that targeting the youth will reduce the number who fall into the unemployed bracket and lose touch with the job market.