Unemployment of new graduates has reached levels never seen in the era of austerity, with the data young people most affected by job shortages due to the pandemic , according to official data.
The unemployment rate for young graduates in England aged 21 to 30 reaches 6.3% in 2020, after increasingt declined in nearly a decade after peaking at 6.5% in 2012, amid the coalition government's austerity campaign.
" Between 2007 and 2020, employment rates fluctuated slightly more for the young population than for the working-age population. suggest that youth employment is disproportionately influenced by changing structural conditions in the economy, ”said the graduate labor market statistics report released by the Education Ministry .
Despite rising unemployment, pay rates for graduates who have managed to find jobs have held up, with graduates aged 21 to 64 earning a average salary of £ 35,000, which is £ 9,500 more than their peers who did not go to college and an increase of £ 500 in 2019.
Salaries differed by sector andgender, with men working in banking and finance earning the most at £ 45,000, and women working in hotels and restaurants the least at £ 26,500. In all industries, men earned more than women, including graduates aged 30 and under, who are less likely to be affected by childcare responsibilities.
There were also disparities in employment rates among ethnic groups and people with disabilities. White graduates had the highest employment rate (86.8%) and proportion of highly skilled jobs (67.0%), compared to 81.2% and 53.2% for black graduates. Tariffs for graduates with disabilities were 73.4% and 52%.
The figures showed an unemployment crisis faced by young people who didn 't had not attended university, with nearly one in four unemployed and not looking for workgarlic - almost double the rate for graduates.
Postgraduate graduates fared better than graduates during the pandemic, with a gap of 1.8 percentage point in overall opening employment rates relative to graduates. High-skilled employment rates were also 12.4 percentage points higher for graduates than for graduates, while median earnings remained higher than for those with only a first degree. cycle at £ 42,000, the same level as in 2019.
Student loan data in England also suggests that the labor market is pandemic prevented some graduates from making their scheduled repayments. According to figures for 2020-2021 from the Student Loans Company, 201,900 fewer graduates repaid theirsalary compared to the previous year. Repayments are only made on income over £ 26,000.
The 2020-21 figures showed that the total amount of outstanding student loans for the Higher education amounted to £ 160bn, of which £ 4.1bn in interest, while repayments totaled £ 3bn. The average loan balance for 2021 graduates was £ 45,060.