The Graduate’s Dilemma

Recent statistics released by the ONS show some alarming statistics for recent graduates.

• In 2011, 20% of 18-year-olds who left school with A-levels were unemployed compared with 25% of 21-year-olds who left university with a degree.
• Graduate unemployment rates were almost on a par with those for people leaving school with just GCSEs, with 26% of 16-year-olds with these qualifications out of work.

Essentially this means that graduates are – on average – only 1% more likely to be in employment than their counterparts who left the education system 6 years earlier. Worse still, they are 5% less likely to be in employment than those who chose not to go to University at all. It all sounds like madness to me. On this note, today’s post will consider the problems facing graduates, possible solutions and the necessity for making right choices.

This problem for graduates is that they are all dressed in the same uniform. A uniform consisting of A’s at A-Level and a 2:1 or better from one of the top universities. When so many people fall into this category it becomes like a game of Where’s Wally for the employers. Where, instead of red and white stripes, the camouflage is academic excellence.

When it’s so easy to disappear into the crowd, the question is how can you possibly stand out and catch the eye of the employer?

There is of course the option of not going to university at all. This argument is particularly compelling for many students contemplating next year’s hike in fees. Take the example of Jack. Jack went to one of the top universities in the country. Yet he was left unimpressed at having just one lecture a week and receiving little personal attention. So after one term, Jack decided to leave. He got work experience at a stockbroker, and impressed them enough to be offered a job as Branch Assistant. Six months later, Jack is a trainee broker and earning far more than he would have for many graduate schemes in similar areas. If University is not for you, ditching the crowd and avoiding the graduate camouflage is now a serious option.

But what if you’re already in the system? You’ve been to University, done your degree and run up the debts to show for it. You’ve found yourself lost in the crowd, desperately trying to stand out. Paul de Zulueta (Managing Director of Lifestep) believes “it is up to the individual to show enterprise and be prepared when an opportunity comes.” Take Tom for example. Tom had set his sights on a career in PR. Instead of taking the well-trodden path followed by many of his graduate colleagues, Tom decided on a different approach. He invested in some quality paper and stationary, and began writing cover letters. He addressed them to named individuals in 6 PR firms of his choice and then hand delivered the letters. Within a week he had 4 interviews and now has his dream career working with a top PR company. It goes to show that a little enterprise can reap some big results.

Perhaps the most ambitious manoeuvre all of all would be to do what Josh did. Having graduated, Josh felt disillusioned with the lack of opportunities in the UK. Having spent part of his degree in Kenya, Josh was well aware that there was also a desperate need for jobs across all sections of Kenyan society. Consequently Josh started Balloon Kenya, a charity that combines the enterprise and education of UK graduates with an ambitious Kenyan youth. Balloon Kenya provides funding and support for scalable ventures within Kenya, and in doing so, tackles issues of youth unemployment across two continents. Balloon Kenya’s first trip leaves in May – Josh is leaving the crowd and taking a group with him.

All of these are real stories about real people (names may have been changed a little). I think it shows that today’s youth have some real choices to make. University is no longer an automatic choice for many students. When you do the cost-benefit analysis of going to university (and racking up massive debt) compared to not going to university (and getting a steady job) the argument comes more and more persuasive.

Whilst graduates need not be in total despair, they have to accept: it is up to them to stand out from the crowd. Whether that is by showing some cunning, enterprise or ambition the responsibility now lies with them.

“Unemployment reaches 16 year high!” Are things as bad as they seem?

The ONS released its latest unemployment figures just this morning. As ever, the initial reaction has been one of doom and gloom! In short these are the most important figures…

• UK unemployment rose by 48,000 to 2.67 million in the three months to December.
• The UK unemployment rate has hit 8.4%, which is the highest in 16 years.
• The number of young people (16 to 24) without a job rose 22,000 to 1.04m, taking the unemployment rate for this age group to 22.2%.
• The number of people claiming Jobseeker’s Allowance in January increased by 6,900 to 1.6 million.

These stats represent the negative side of things. On the surface it all appears very worrying. Yet there are some hopeful signs…

• The number of job vacancies rose to 476,000 in the three months to January.
• The number of people in jobs rose by 60,000 in the last three months the year to 29,130,000.
• This is owing to the 78,000 who are no longer classified as economically inactive.

The fact that there are now 476,000 job vacancies across the UK suggests that – despite my previous protestations – a significant proportion of the unemployment is structural. This is perhaps the easiest type of unemployment to deal with.

Whilst there is also this strange contradiction: Despite there being 48,000 more people unemployed in the last quarter of 2011, the number of people in jobs actually rose by 60,000. It my maths serves me correctly, that is an increase of 12,000 people in employment.

So how could unemployment have possibly reached a 16 year high? The answer lies in the definition of unemployment. The 60,000 who now have jobs were previously neither employed nor unemployed. They were “economically inactive.” This can be owing to a number of factors, for example being too ill or injured to work. So despite unemployment levels rising, there are more people with actual jobs in the UK, than there were 3 months ago. Surely that’s a good thing.

Yet, just because there are 12,000 more people in employment, things are by no means rosy. Youth unemployment rose to a staggering 22.2%, and although average earnings rose 2.0%, inflation lies at 3.6%. This represents a 1.6% reduction in spending power. Or £160 less for every £10,000 earned. The UK economy is still facing dark times. As a country we not even close to being out of the woods. But if you look beyond the inevitable gloomy headlines, things are not as bad as they first appear.

Youth unemployment on brink of “emergency.”

The ACEVO released its report on youth unemployment last week. With talk of “emergency” levels of unemployment and an ominous sounding “£28 billion timebomb,” I advise graduates of a nervous disposition to look away now.

In short the report highlights the following issues.

• Youth unemployment has reached “emergency point.”
• 1 in 5 are not in employment, education or training.
• This is going to cost the Government £28 billion over the next 10 years.
• There are 600 hot spots across the country where young people claiming Jobseekers Allowance is double the national average.

It’s all very grim reading, I know. But being an eternal optimist, I will always try and find the silver lining! At least it seems that people are beginning to take notice of this problem. It’s a real problem and one that could potentially cripple the country; both in economic and social terms.

David Miliband – who chaired the commission on behalf of ACEVO – believes the task of abolishing long-term youth unemployment is achievable, and he’s even come up with some practical recommendations to do so…

• Enforcing the Government’s “Youth Contract” initiative and doubling the number of job subsidies in 2012.
• Introducing “First step” – a part-time job guarantee for young people who have been on the work programme for a  year without finding a job
• Targeting the young earlier. Mr Miliband is supporting a new national programme Job Ready which provides localised education-to-career support for the non-university bound.
• Youth Employment Zones. Whitehall will offer local organisations extra freedom and flexibility if they pool together resources and get young people into work.
• Last on the list of David’s recommendations is a mentoring scheme for young by young people.

What to make of all this? It’s reassuring to know that people are ready to do something about these issues.  As for Mr Miliband’s recommendations: In a government restricted in what they can do by a stagnant economy, the recommendations seem practical and doable.  Using available funds to provide job subsidies and finance “First Step” will no doubt create jobs. Whilst training the young to become more employable is something we preach here at Lifestep.

Yet abolishing long term unemployment is no simple task. The report talks of Britain’s long term structural unemployment. Having dug up my a-level economics textbook I can tell you that structural unemployment refers to a mismatch between demand in the labour market and the skills and locations of the workers seeking employment. In other words; apparently there are jobs out there. The problem lies in the fact that the unemployed are either not skilled enough for the jobs on offer, or they are in the wrong place at the wrong time.

To be honest I don’t really buy this. Having spoken to many graduate friends currently looking for jobs I can safely say the problem is not structural. The problem is surely simpler. The supply of labour is far greater than the demand for their services. It’s a reflection of the economy in 2012.

Again this leaves me thinking, what’s the solution?

What about packing it all in, leaving the U.K and moving to an exotic location? Unfortunately the unemployment problem is not confined to these shores. If Britain is on the brink of an emergency then Europe is in a full on state of terror. For countries like Italy, Spain and Greece the U.K must look like a shining beacon of hope and opportunity right now.

How about moving further abroad? Schemes such as Balloon Kenya offer graduates the chance to escape the U.K and use their enterprise and guile to greater effect in countries that need it the most. It will be a great experience and an opportunity to make a real difference.

If you don’t fancy escaping the U.K then the solution is simple. Become as employable as you possibly can. Do everything in your power to get the edge on your competitors.  It may sound too simple to be true, but there are methods and rules that can be easily applied. For top jobs, internships and interview tips register for Lifestep’s newsletter at www.lifestep.com.

Yours sincerely

Louis 2.0

2012 – The year of the unemployed graduate by Louis Collin

I am 24 years of age. I have a well respected degree from one of the UK’s top universities as well as good GCSEs and A-Levels. I am hardworking, a team player, ambitious, enthusiastic, organised and any other characteristic you can throw at an employer. Yet I don’t have a job. I am your archetypal unemployed graduate of 2012.

A day in the life of the unemployed can be a tedious monotony of checking emails, sending emails and countless cups of tea. This coupled with having no money can sap morale.

In 2012, academic excellence is no longer enough, and by no means a guarantee of a career. Graduate schemes typically have over 80 applicants for every job. “Graduate jobs” now require 2-3 years previous experience.  Putting it simply, graduate unemployment is at a 20 year high.

I’ve done the graduate fairs, filled out various questionnaires (Do you like working outdoors? Yes – become a zookeeper), and signed up to all the job sites. So far these approaches have proved utterly useless. So what’s the solution?

One possible solution is to jump on the internship bandwagon.  The internship debate is raging at the moment, and when there’s such a fine line between personal benefit and exploitation it’s hardly surprising. Getting a genuinely rewarding experience from an internship is a two pronged process: finding the right internship and making the most of it.

There is no doubt that the right internship can be invaluable. You learn skills on the job, you get to network and ultimately you come out of the experience better placed than when you started. Yet there are an abundance of internships out there that offer little more than the skills needed to negotiate a photocopying machine. This means that finding the right internship – let alone job – is a competitive process. You’ll need to stand out from the crowd.

Even to get an interview you need to get noticed. It may sound obvious, but when an employer has a pile of 100 similar CVs only the exceptionally well tailored ones will get noticed.

Once you’ve got an interview you need an edge over your competitors. You need to be confident in what you’re doing. I find it remarkable that interview technique is not taught at school. Its seems ridiculous that most graduates will go into their first post-university interview with no formal training. Preparation, presentation and dealing with interview day nerves can all be easily taught and practised.

Once you have your dream job the name of the game is networking, making connections, ensuring you make the most of your – well deserved – opportunity. Sounds easy enough, right? As Lifestep’s new intern I’m looking forward to being trained in these areas and no doubt reporting back their overwhelming success!