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Graduate outcomes: Beyond numbers, towards quality?

by Tej Nathwani and Ghislaine Dell

with a foreword and afterword by SRHE Network Convenors Tracy Scurry and Daria Luchinskaya

Foreword

As many of us working with graduate employment statistics will know, it’s difficult to find up-to-date large-scale data of graduates’ experiences of work. In the SRHE event Exploring graduate outcomes: Do we need to look beyond earnings and occupation?, Tej Nathwani (HESA) introduced a new graduate outcomes measure capturing subjective aspects of job quality, while Ghislaine Dell (Head of Careers at Bath University and member of the AGCAS Research and Knowledge Committee) reflected on the implications from a practitioner perspective. In this follow-up blog, Tej and Ghislaine comment on the issues in capturing subjective graduate outcomes and outline directions for future research. HESA is keen to get your feedback on its measures: see the end of the blog for how to get in touch.

Capturing job quality in HESA’s Graduate Outcomes survey

Tej Nathwani

Since the financial crisis, there has been a fundamental rethink about the way we measure economic and societal progress, with greater attention now given to subjective forms of data. At the individual or micro level, this has resulted in growing international interest in the quality of work – essentially those parts of our employment that correlate with our wellbeing. From a UK perspective, Scotland led the way in bringing this matter to the forefront with the formation of the Fair Work Convention. Not long after, we saw the Taylor Review of Modern Working Practices published, which recommended the dissemination of regular data on eighteen job quality indicators covering seven broad dimensions.

Graduate outcomes in the UK have historically been assessed solely on the basis of earnings and whether individuals find themselves working in professional or managerial occupations. Yet, research examining the aspirations of higher education students indicates that they want a career that uses their skills, aligns with their ambitions and that can enable them to make impact. Under the Fair Work Convention framework, these aspects embody fulfilling employment. Furthermore, funding and regulatory bodies also want to see all graduates find such work.

With no data currently available on this matter, this clearly represents an information gap in graduate labour market statistics. As an organisation that adheres to the Code of Practice for Statistics, HESA have therefore started to conduct research to fill this space. This has involved using three questions in the Graduate Outcomes questionnaire relating to these features of employment to form a single composite measure that captures fulfilment (or the ‘job design and nature of work’ as it is also commonly referred to). Our ambition is to introduce this into our official statistics/open data in forthcoming years.

Indeed, with the importance of job quality set to grow, one pathway we are currently exploring for the future development of the Graduate Outcomes survey is the addition of new questions on other elements of decent work, as identified by the Measuring Job Quality Working Group.    

Ghislaine Dell

Students make career decisions for very personal and subjective reasons. Recent research from Cibyl shows us that the most frequently looked for qualities in students’ career choices are interesting work, career progression, good work-life balance, and training & development. This matches very well to the proposed new job quality indicator. The Government’s continued emphasis on degrees offering good return on investment is at odds with what the workforce of the future are seeking. Notably, Tej’s analysis showed that, after about £25,000, higher salary does not increase graduates’ reported wellbeing, but more fulfilling work, as captured by the new measures, does. From a governmental and individual perspective, then, knowing what jobs are ‘good jobs’ is important for a thriving society. An indicator which focuses on fulfilment could enable students to make a more informed choice between possible career directions.

However, there is a potential issue around the way in which we can capture this. For example, if we take ‘I am utilising what I learnt in my studies in my work’. Many graduate jobs are discipline-agnostic, and so a chemist, for example, would not be using ‘what they learnt’ in terms of Chemistry, in a financial services job. HESA’s cognitive testing of its survey questions provides a starting point for understanding how respondents are likely to approach these statements. However, further development of the phrasing of these questions is arguably necessary to ensure that the explanation of ‘skills mismatch’ isn’t simply attributable to graduates working in a field different to the one they studied.

 A key challenge will be to work on improving response rates so that each provider can report on this new measure with confidence. Currently, the subjective “graduate voice” questions in Graduate Outcomes are not compulsory, they rarely form part of the official narrative and minimal time is devoted to analysing and understanding the responses. If we are truly to maximise the potential of this measure, these issues need to be addressed.

The new measure both fills an information gap and provides a lever for inclusion of job quality into official statistics augmenting its importance for governments and providers.

Afterword

The lively discussion that followed this SRHE event, organised by the Employability, Enterprise and Work-based Learning Network, reflects the genuine interest and excitement in being able to gather job quality statistics at scale for the first time. HESA is plugging the long-standing information gap, enabling new research directions to take off in practitioner, academic and policy communities and providing better careers information, advice and guidance to students and graduates. There is still work to be done to improve the measures and scope to expand the coverage of job quality indicators in particular extending understanding of how students interpret and understand these questions. Your feedback, whether based on experience or research, can help in the future development of this measure.

Feedback on the types of statistics users would like to see incorporated into HESA open data based on the new measure are most welcome, as are views on potential amendments/additions to the Graduate Outcomes survey. Please send your thoughts to official.statistics@hesa.ac.uk.

For more information about the Employability, Enterprise and Work-based Learning Network and future events please see: Employability, Enterprise and Work-based Learning | SRHE

For more information about AGCAS and the Research and Knowledge Committee please see: Research and Knowledge from AGCAS

Contributors

Tej Nathwani is a Principal Researcher (Economist) at HESA, which is now part of Jisc.

Ghislaine Dell is Head of Careers, University of Bath and member of AGCAS’ Research and Knowledge Committee.

SRHE Network Convenors: Dr Daria Luchinskaya is a Lecturer at the University of Strathclyde Business School and Professor Tracy Scurry is a Professor of Work and Employment at Newcastle University Business School.


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Balancing books and bills: an exploration of the hidden world of student workers

by Fabio R Aricò, Laura Harvey and Ritchie Woodard

The pattern is familiar across many universities: more and more students are asking to be excused from attending classes, submitting coursework, and even sitting examinations, because of work commitments. Not long ago, these requests would have been dismissed as feeble justifications and lack of planning but, in the face of the cost-of-living crisis, this rising phenomenon is a signal that students are struggling to make ends meet and that ad-hoc institutional responses have not yet addressed this challenge (Jones (2022), OfS (2023)).

During this period of high inflation, characterised by rampant housing costs and food prices, student finances are increasingly under pressure (Dickinson, 2023; Peachey, 2023). A larger number of students from different backgrounds are now seeking employment whilst studying for their degree. Universities and institutions have responded with a range of emergency measures, including financial support, housing aid, and foodbanks. Yet, there has been minimal adjustment in the way courses are taught or structured to accommodate part-time work, which has become a new normal for many learners (Blake, 2023).

Students undertaking part-time employment, during term or during vacation periods, is not new; in fact, it has long been encouraged by careers teams to facilitate the formation of soft-skills, broaden CVs, and boost chances for graduate success in the job market. Moreover, meaningful work experience or employment can be seen as critical for a number of professions – a mechanism to distinguish between graduates with the same 2:1 degree but with differing employability capital.

To what extent is student employment detrimental? The potential for harmful consequences of working whilst studying are clear – missing teaching sessions, not allocating enough time to independent learning, and increased stress levels, all have detrimental impacts on degree outcomes. However, there are also positive returns to student part-time work: developing key skills which are valuable for learning, as well as in the graduate labour market, such as problem solving, teamwork, communicating with customers and managing different priorities. The complex nature of this question is a key motivator for our ongoing research.

We conducted a small pilot survey at a mid-sized, mid-tier institution with the aim of gaining further understanding of the work-study trade-off faced by students. We hypothesised three main drivers for the decision to work whilst studying: (1) need to work, to have enough money to cover basics such as housing and food, (2) want to work, to pay for additional items such as holidays, and (3) invest into work, intended as seeking employment with the proactive aim to enhance employability skills. These complementary drivers are reflected in the range of jobs students reported having, including working for the university, retail, and hospitality.

Our pilot validated the presence of all these drivers in the sample we collected, as well as uncovering much more.

First of all, we observed that a non-negligible share of respondents reported working in offices, offering personal tutoring, and providing services as cleaners or in healthcare – roles not typically associated with student work in the past.

One of our findings sheds light on a socio-economic driver for employment. A significant number of questionnaire respondents claim that their student loan does not cover their essential expenses, or that their family network is not able to provide additional financial support at this time, evidencing a correlation between family financial background and the need for employment.

More interestingly, another finding reveals the presence of positive personal and social dimensions of student work. In fact, despite mentioning financial hardship, many students share positive feelings associated with the enjoyment of their part-time work as an ‘escape’ from studying, a means to fulfil their aspirations to rely less on family financial support, as well as an opportunity to socialise outside the academic environment. Although very preliminary, this result could highlight a shifting trend of no longer spending money on social activities, but rather earning money which comes with social interaction and, at a particular level, positive impact on mental health.

Whilst the phenomenon of working whilst studying has characterised the experience of generations of students, this practice has become much more common and widespread nowadays. Young people are increasingly prioritising earning versus studying in the face of financial hardship. In the absence of substantial policy reforms to student finance, this issue will remain present in the sector long after the cost-of-living crisis is resolved. In the face of these constraints, we suggest there is an opportunity for institutions to embed inclusivity and flexibility into their learning and teaching offer to minimise hardship for students, rather than opting for remedial support in the form of bursaries or food banks. In the long run, an evidence-informed flexible curriculum approach, which capitalises on the employability and social capital built through part-time work, could prove to be an effective approach in responding to economic and political instability, with a direct impact on the current and the future student experience.

The research is currently still underway and we are keen to connect with other researchers to expand the reach of this study. To find out more please contact the research team at cherpps@uea.ac.uk.

Prof Fabio R. Aricò is a Professor of Higher Education and Economics and the Director of the Centre for Higher Education Research Practice Policy and Scholarship at the University of East Anglia. You can find out more here and connect on twitter.

Dr Laura A. Harvey is a lecturer in Economics at Loughborough University. Her research is in the area of inequality and education. You can find out more here and connect on twitter.

Dr Ritchie Woodard is a lecturer in Economics at the University of East Anglia, with research interests in pedagogy, workplace wellbeing, automation & job satisfaction, and sports economics. You can find out more here and connect on twitter.


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Connecting conceptual and practical dimension of employability

by Omolabake Fakunle and Helen Higson

We were very proud to have our paper accepted at SRHE’s 2023 Research Conference. This was particularly because we value our collaboration, which was born via SRHE, and our paper was about that journey. This blogpost shares highlights from our SRHE 2023 conference paper which outlined: (i) our collaboration to publication research story; (ii) the importance of SRHE in our collaborative journey; which amongst many positives for nearly a decade, links directly to (iii) our award-winning journal paper that presented a conceptual framing of employability in different global contexts.

Our collaboration to publication research story

This recent piece of work started with a joint seminar at the 2019 SRHE Conference at Celtic Manor. We gathered a group of employability researchers to explore different aspects of interrogating methodologies and approaches on employability from different disciplinary perspectives and country contexts. It was a lively session, inspiring much debate including questions from the audience, and making us realise that it was time to re-evaluate yet again the conceptions of what employability meant.  We were encouraged to suggest a follow up session, and by the time we left the room we had agreed to investigate the production of a special issue of Higher Education Quarterly (HEQ).

We discussed the initial steps in our collaboration to publication journey. Helen shared her recollections and how she persuaded Labake, as an early career researcher, that her career would be strongly enhanced by taking the lead in the endeavour. Hence, throughout the Covid-19 lockdown and beyond, Labake pitched our idea, had it accepted by the editors of HEQ, and then worked to make sure that all the contributors met deadlines, and delivered papers of the quality needed for publication.

In July 2021, our special issue entitled ‘Interrogating theoretical and empirical approaches to employability in different global contexts’, appeared online and on paper in HEQ. We were ecstatic and amazed at the success of the publication, particularly when we discovered in 2023 that our introduction paper, Fakunle & Higson (2021) and Labake’s substantial paper (Fakunle, 2021), had been Wiley’s top cited and most downloaded articles respectively (in 2021/22). Additionally, both papers and two other papers from the Special Issue were cited in Tight’s (2023) recent review and synthesis of the debate and continuing discussion around how employability is viewed in relation to the core purpose of higher education. This affirms the intellectual quality and care with which the work had been carried out. We talked about the impact for our career trajectory, and its significance as Helen entered her third decade of researching in employability, with the first 20 years charted in Higson (2023).

The importance of SRHE to this work

This second part of our paper concentrated on the role of SRHE in the triumphs mentioned above.  As we chart this contribution, we acknowledge that it is a story that many other HE researchers will recognise.  For both  of us, the SRHE has played a major and significant part in our research journeys, both individually, but in this context particularly together.

The story begins when Helen was appointed Co-Network Convenor of the SRHE Employability and Enterprise special interest group. This involved running a number of very successful research days in London, and an eventful one held in 2014 in Edinburgh, which saved Scottish colleagues some journey time. The well attended event attracted participants not only from Scotland, but also from Northern Ireland and from England, as far south at Bournemouth. The session was held at the Dovecote Studios, where we first met when Labake, then a PhD student, was working on the employability of international students. This shows the importance of these events, and the vital role of supervisors and network convenors to encourage PhD students to attend these events, which are always collegiate and inspire confidence in early career researchers. This SRHE event at Edinburgh was the starting point for the mentoring relationship and follow-up conversations at subsequent SRHE Conferences. We provide below a brief snapshot/testimonial about the efficacy of SRHE network events.

Helen’s reflections

As network convenor, I was always keen to create a community of practice for employability researchers at the Conference.  On the first night, before most of the conference had started, I always hosted a table in the restaurant.  This allowed lone researchers, new researchers, and first time conference goers to join our group in an informal setting.  This always ensured that there were friendly attenders at conference presentations, and often led to future collaborations.  A number of my best collaborators and now friendships (including with Labake), stemmed from those friendly dinners, at which we always ran out of chairs.

Labake’s reflections

I kept in touch with Helen during and after completing my PhD and my academic roles at the University of Edinburgh. I enjoyed attending several Employability events as a valued opportunity to network with colleagues from the UK and abroad and explore collaborative opportunities. This formed the basis for asking Helen to join me in contributing to the Conference seminar in 2019, and our continuing mutually beneficial collaborations. I am especially proud that one of my PhD students was accepted to present her research at the 2023 SRHE conference and is able to avail themselves of the networking opportunities!  

Our groundbreaking employability framework

Our presentation culminated with the discussion about the employability framework in our award-winning journal article published here. The framework proposes a conceptualisation of employability in 3 dimensions: outcomes, process and conceptual. The outcomes approach is centred on economic parameters based on individual competence and employment rates. We point to the dominance of the outcomes approach in the multiplicity of definitions and understandings of employability. The process approach captures the role of higher education institutions in providing and assessing employability development opportunities. We differentiated between different conceptual approaches of employability dimensions such as the dominant human capital theory (underpinning the outcomes approach), critical realism, capability and positional conflict. The framework provides conceptual clarity that addresses contesting positionalities and differing positions on what employability is, and the relevance beyond dominant outcomes approach and western-focused context.

Conclusion

We are grateful and mindful that SRHE worked the magic for us, bringing together an experienced researcher and ECR with impactful outcomes. Our story is one of many. Hopefully, our story will inspire other ECRs to reach out and make the best of the opportunities that SRHE provides. We also want to highlight how the input and support from more experienced researchers, and collaboration can make a lot of difference in academic career trajectory!

Dr Omolabake Fakunle is Chancellor’s Fellow, and Director of Equality, Diversity and Inclusion at the Moray House School of Education and Sport, University of Edinburgh. She is Affiliate Faculty, Centre for Higher Education Internationalisation (CHEI), Università Cattolica del Sacro Cuore, Milano. Her award-winning research, teaching and consultancy includes inclusivity in internationalisation, employability, and decoloniality. She was a member of the inaugural Scottish Funding Council’s Tertiary Quality Framework Expert Advisory Group, and current member of the SRHE Governance and Appointments Committee. 

Professor Helen Higson OBE DL was Deputy Vice-Chancellor at Aston University.  She is now Professor of Higher Education Learning and Management in Aston Business School.  Helen is a Principal Fellow of Advance HE and a National Teaching Fellow.  Her recent research, policy and consultancy work includes intercultural training, developing employability and skills development, facilitating a coaching


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How professional digital ePortfolios can enhance employability and professional identity

by Jodie Pinnell

Graduate employability helps UK universities to attract students, so strategies to connect learning to employment are increasingly valuable. One proven method encouraging undergraduate students to consider life beyond graduation is to build employability into summative assessment, and digital ePortfolios are one such approach. An ePortfolio is an online resource created by students that details professional experiences linked to academic study. It culminates in a structured collection of learner work that is primarily framed by reflection and serves as an online record of achievement, showcasing skills, professional experiences and credentials. My research investigated digital ePortfolios in the undergraduate curriculum in Childhood Studies at the University of Portsmouth.

Closely related to employability, ePortfolios showcase applicant credentials and digital competence, allowing universities to assess students creatively, and allowing hiring organisations to determine applicants’ skills for entering the job market (Ring et al, 2017[RC1] ). This is relevant in a climate where graduates compete for jobs, and degree programmes are perceived as a ‘product’ with an emphasis on value for money with students as customers (Modell, 2005). As pressure mounts for universities to compete for student recruitment, action is needed to improve graduate employability metrics.

Although ePortfolios may not be a novel approach in undergraduate programmes, their integration as a central element of curriculum and assessment has not been fully explored. My study investigated how ePortfolios affected students’ interactions with their university experiences by enhancing professional identities and reflective, lifelong learning. Data collected for the project relied upon students’ perceptions through recorded online interviews, adopting a phenomenological approach, eliciting meaning through reflective, subjective understandings. Findings showed that reflective work in ePortfolios can be challenging through exposing vulnerabilities, whilst also positively playing a role in the ‘bigger picture’ of students’ development – ePortfolios facilitated digital skill development and evolving professional identities.

In the data collection process, discussions encompassed ePortfolio development linked to students’ compulsory work placements embedded in Childhood Studies degree programmes. Participants were in 2 groups; current students and graduates, with data collection focused on specific contexts and circumstances (Willig, 2008[RC2] ) and reflective, subjective understandings (Finlay, 1999[RC3] ). I took an idiographic stance (Burrell and Morgan, 1999[RC4] ), collecting data covering the perceiver’s angle of perception (Willig, 2008[RC5] ). Participants in the study were in 2 groups; 5 current students and 4 graduates, sampled voluntarily. The interviews conducted were semi structured and the key themes of the findings were employability, reflection, professional identity, digital skills and the student experience.

ePortfolios “develop engaged, reflective, lifelong learners” by collecting valuable evidence of career-based skills, and promoting “professional digital identities” (McKay & Watty, 2016[RC6] ). This study recognised this shift in identity for students, with findings outlining how ePortfolios “help you to reflect and develop as a professional person,” and that students did not “feel like a student when […] writing this” (Graduate Participant).This is arguably caused by the facilitated connections between practical learning and reflective summative assessment: “I’ve got this theory and understanding of things from uni and I can apply that. And everything makes so much more sense which moving forward has meant Oh, my gosh! I can work even better now” (Graduate Participant). As students reflected on professional experiences they valued the connections between theory and practice, with ePortfolios aiding reflection on an individual’s strengths and weaknesses. This in turn improved the quality of work and addresses multiple identities (Ring et al, 2017, p 226[RC7] ). Embedding ePortfolios in the curriculum as a summative assessment enforced accountability for students’ professionalism, leading to an increased level of perceived value from degree study. The requirement for students to write reflective accounts and build connections between experiential and theoretical learning leads to “heightened awareness and preparation for professions” (Svyantek, Kajfez & McNair, 2015, p137[RC8] ). When students had an idea of their professional trajectories, this led to valuable consideration of career plans: “You’ve got clarity in your writing as well, which is probably a nice feather to the bow when you were reflecting on [your career]” (Student Participant). As ePortfolios prompted students to present their professional personas for large audiences to “intentionally curate their digital presence” (Svyantek et al, 2015, p 146[RC9] ), the development of professional identity aided career planning.

Reflection is key for undergraduate Childhood Studies degrees, with a need to embed this in the curriculum to be effective. “Danger lies in [reflection] being a separate curriculum element with a set of exercises” (Bolton & Delderfield, 2018[RC10] , p 1), and with ePortfolios, reflective writing characterises their creation. The meaning of this reflection was evident in the findings: “This is the only assessment that you go and do something real, and then you have to bring it back to our lovely, fluffy theory of ‘Oh, this is how things should be,’ and no one else really makes you do that” (Student Participant). This recognised integrative thinking for students, encouraging the management of complexity and problem-solving by connecting ideas akin to professional experiences (Svyantek, et al, 2015[RC11] ). Reflection brings challenges, however, with vulnerability associated with articulating learning from experience. Findings showed: “[There was a] vulnerability that you felt when you submitted those reflections” (Graduate Participant); the cause arguably in revealing more of the ‘self’ than other assessment methods (Lewis & Gerbic, 2017). Accompanying this is the requirement to adopt alternative ways of thinking that encompass purposeful goal-directed tasks that personalise the learning experience (Lewis, 2017).

The integration of ePortfolios in undergraduate Childhood Studies degree programmes positively affected students’ perceptions of their professional identities, employability and digital competence. Reflecting on work placement experiences was challenging for participants and vulnerability was exposed in recounting experiences for assessment purposes. ePortfolios have made a positive impact on undergraduate Childhood Studies degree programmes, taking into account wider university contexts and individual learning experiences.

Jodie Pinnell is a Senior Lecturer in Childhood Studies in the School of Education, Languages and Linguistics at the University of Portsmouth. She is a Senior Fellow of the Higher Education Academy UK. Follow Jodie on Twitter @jodieEdu


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Interest rate changes could challenge universities, student loans and post 16 and vocational education

by Sir Adrian Webb

The publication on 13 September 2023 of the House of Lords Industry and Regulators Committee report on the Office for Students drew attention to the financial challenges facing universities in the UK and to the challenges associated with regulating and overseeing these risks.  

This week we look set to see these challenges increase with the possible increase in the  base interest rates by the Bank of England (the “Bank Rate”) to 5.5% when the Monetary Policy Committee next meets on Thursday 21st September (Guardian, Financial Times, 24 August 2023 ). If there is another 0.25% increase in the base rate, as is widely anticipated, this will place government and university finances under further pressure over the next few years with significant negative implications for HE students, the UK Government’s education budget in general and the further education college budget in particular. Furthermore, this anticipated rise in the Bank Rate may not be the last of these increases if Government spending remains high and inflationary pressures persist through the winter months. 

The most immediate and direct effect will be on the interest payments that universities need to pay on short term loans. According to HESA, average HE provider debt as a proportion of turnover stands at 0.16%, but with highs of 454% and lows of 0%, with unrestricted reserves of 204% of income (HESA, 2023). Of course, financial indicators expressed as a percentage of income for institutions of very variable sizes give no feel for the absolute amount of cash owed, or the annual cost of repayments.  

The top 13 higher education providers by percentage of debt are all small private institutions; most have recorded deficits in recent years and appear to have low levels of cash available to cover running costs. The next 35 institutions by scale of debt all have debt levels of over 50% of turnover. Among these institutions there are 22 large pre- and post-92 universities in all parts of the UK.  

The challenges presented by potential increases in interest payments will be exacerbated over the next two years by the continued decline in the real value of student tuition fees, limitations on the recruitment of overseas students with dependants and a decline in the proportion of students applying to low and mid-tariff universities.  

When student tuition fees were first introduced, HE providers were encouraged to set fees at between £6,000 and £9,000 per annum. Some price competition between institutions was expected but in practice the vast majority set their fees at the higher level. Recent analysis by Mark Corver of DataHE, an independent higher education consultancy, indicates that the real level of fees that higher education providers charge students as tuition fees has dropped below £6,000 if the value is deflated by the Retail Prices Index (RPI), slightly higher if other measures of inflation are used.

Over the last five years, many HE providers have been attempting to cover the reduced value of undergraduate home tuition fee income by recruiting larger number of international students, particularly from China, India and Nigeria. This approach has attracted large numbers of students to the most selective universities and those in major cities; many universities now have more than 25% of their students recruited from these sources. The announcement of restrictions on the release of temporary visas to support the dependents of international students has already had an impact on the recruitment of people from overseas who want to study at UK universities.. This impact looks set to continue and increase in 2024. 

To illustrate the issues faced by the more highly indebted institutions with a significant number of international students, consider the composite case of the University of Camberwick Green, with net debt of circa £200m and current loans with a weighted average debt cost of 3.5%. If this institution needed to renew all of its existing debt obligations this would likely double the costs of debt servicing from £7million to at least £14million. This would mean an additional annual outlay as a proportion of turnover in excess of 5%, dependent on the interest rates agreed with lenders and the term of their loan (e.g. revolving credit facility, private placement, bond or bank lending).  For a university like Camberwick Green, which has also recorded large operating deficits in recent years, additional debt is likely to be more expensive and so the short-term options are likely to focus on selling assets or laying off staff; these are not easy or attractive options. Changes to course portfolios and/or increased international student recruitment and transnational operations are unlikely to produce the necessary returns quickly and without undue financial or reputational risk.  

The more prestigious and selective universities in the more affluent parts of the UK are unlikely to face pressures that are likely to bear down hard on those which are, by conventional measures, less prestigious and less selective, in parts of the UK that engaged in levelling up activities with significant HE involvement. The impacts of high indebtedness, declining student recruitment and operating deficits are already being felt with significant redundancies planned at ten universities. 

The next most significant impact of higher interest rates will be on student loan repayments and the arrangements for funding this activity. The student loan book currently stands at £206bn with an additional £20bn of loans being issued each year. The internal real interest rate charged on these loan arrangements by HM Treasury, i.e. the real discount rate (excluding inflation), was set at -0.7% in 2021 at the height of the Covid crisis and remains the rate proposed in the Plan 5 changes scheduled to come into place during 2024. The nominal discount rate taking account of inflation is 1.9%. If Bank of England interest rates and by consequence HM Treasury bond/gilt rates move to 6.25% in 2024, as has been forecast, and the student loan rate is changed as a consequence, this will create an adverse upward movement in real interest rate charges on the loan book of circa 5%. Dependent on the scheduling of the loans this will then feed through into the calculation of the principal debt students are required to repay and also the Resource Allocation Budget (RAB) charge paid by the UK Government on loans that are forecast not to be repaid. Under revised accounting rules introduced in 2021, a proportion of this increased RAB charge will need to be accounted for in the national deficit in the year it is incurred and cannot be delayed until the loan matures. With forecast increases in the scale of the student loan book through to the next decade there are likely to be powerful voices in the Treasury wishing to pay down this debt or reduce the scale of its growth. This in turn is likely to mean a need to revisit the current arrangements in advance of the next HM Treasury Comprehensive Spending Review (CSR) in 2025. 

The current loan book is financed in part by the spread (difference) between the notional interest rate charged to students on loans they have taken out, which is currently set with some reference to the Prevailing Market Rate (PMR) for commercial loans, and the lower rate paid by the Treasury for its borrowings. The PMR was set at 7.3% in February 2023 and confirmed at this level for the period between September and November 2023 on 11th August. . At present the Bank of England Bank Rate is 5.3% and so the spread between the student loan rate and the Bank Rate was 2%. If a similar spread is expected if  the base rate rises further to 6.25% the PMR could be 8.25% or even higher. Interest rates at this level would make almost all student loans un-repayable, effectively converting the loan system into a graduate tax confined to new students and also potentially introducing a significant element of “moral hazard” as many students would face little incentive to do anything other than maximise their student loans. Given that they will never repay them; they will face an additional marginal loan repayment (tax) rate of 9% on undergraduate loans and 6% on postgraduate loans, so why not take out as much loan as possible and complete a postgraduate taught or research degree, even when the economic returns to them individually and to the public purse are negative. Beyond this “moral hazard” argument there is also arguably a “moral outrage” argument to be had about imposing an age-related differential income tax rate on younger people who are recent graduates. 

The problems outlined above are then likely to be heightened by forecast increases in the number of prospective undergraduate students entering the system over the next seven years.  In 2021/2022 there were 2.16 million U.K. domiciled students in UK HE institutions and a further 0.68 million students from the EU and other overseas countries. By 2030 the number of UK domiciled students is expected to increase by between 200,000 and 400,000 as a consequence of increases in the number of people in the relevant age groups. This would be at an average additional cost per student of at least £60,000 per three-year undergraduate degree, based on loans for tuition fees of 3 x £9,250 and for maintenance of 3 x up to £13,022 for students living away from home in London. Many students study for longer than three years on foundation and/or masters programmes, hence the forecast of £60,000 per student. This is an additional annual cost of loan outlay of £12bn or more. This seems unlikely to be fundable. 

The implication of these cost pressures would be serious enough if they were confined to HE, but they are not. Far from it. At present the growing costs of HE are being paid for by other parts of the UK Government’s education budget, resulting in real terms cuts to the further education budget, consequent low rates of pay for FE college staff, and cuts to the adult education budget. In adult education, FE and apprenticeship provision pay rates are set locally rather than nationally and so reductions in institutional budgets in this part of the education sector have tended to be accommodated by falling wages and unfilled vacancies rather than through redundancies as has been the case in the university sector. These different parts of the post-school education system are making greater use of part-time and temporary contracts and precarious jobs. This at a time when the need for more and better vocational education is increasingly widely recognised and the need for “industry standard” staff capable of delivering the new and upgraded skills required by rapid technological change has never been greater.  

Across the UK 70% of adults have not been to university, but like many older graduates they would benefit from the opportunity to take a course at a local college or other adult education provider. With 20% of the adult working age population (5 million people) currently economically inactive and with chronic skills shortages in all parts of economy it is very worrying that the pay of college lecturers in catering, construction, digital, engineering, health and social care is considerably below the rates paid to comparably skilled people working in the private sector. Employers in the UK spend on average 50% less than their counterparts in mainland Europe on workforce education and training. The combination of reductions in employer spending on training and cuts in UK Government funding for FE and apprenticeships has led to a reduction of over 1 million student places in adult education, apprenticeships and FE per year in the last ten years. This is not the position the UK needs to be in to improve productivity. Indeed, it is the very opposite of what is required to support such mission – let alone to promote inclusive and sustainable economic growth.  

Who is responsible for monitoring and governing this system? At the moment the financial position of individual universities is overseen by their governing bodies, aided by internal and external auditors predominantly drawn in combinations of two of the big four audit firms. The Office for Students (OfS) monitors the financial position of individual higher education providers as part of its regulatory function, but it is not formally required to intervene financially at an early stage to support institutions in difficulties. It may issue a requirement to improve the plans for protecting students, but it is not required to prevent an institution from failing. The Student Loan Company (SLC) is overseen by an independent board and supported by a representative from the sponsoring departments in the UK’s national governments (i.e. Department for Education, Scottish Government, Welsh Government and Northern Ireland Office in the absence of the Northern Ireland Executive). Whether the OfS, national regulators in the devolved nations or the SLC have modelled the scenarios outlined in this note is a moot point. Indeed, it is more of a mute point because no one is publicly talking about these issues and the problems that go with them in a joined-up way with a long-term perspective. It would be helpful if they did, and if there was a debate about the consequences for higher and further education providers and student loans of the return to real interest rates more in-keeping with the long run historical average. Given the commitment of central banks around the world to move in this direction after 15 years of ultra-low interest rates there is a pressing need for a comprehensive review of where we are heading and what needs to be done about it. 

As we approach a General Election in 2024, now is the time for the major political parties in the UK to commit to the appointment of a Royal Commission or equivalent to look at these issues with an impartial, sector neutral and critical eye.  Over the last hundred years all major changes of this type have proceeded in this way (i.e. Smith Report 1919, White Paper on Education 1943, Robbins Review 1964, Dearing Review 1997 and Browne Review 2011). Indeed, in 1997 Gillian Sheppard (Conservative minister) and David Blunkett (prospective Labour minister) agreed in the run up to the General election to respect the Dearing Committee proposals. A similar arrangement was reached regarding the Browne Review between Peter Mandelson (Labour Minister) and George Osborne (prospective Conservative Minister) in the run up to the general election in 2010.  The settlements in 1944 and 1963 were similarly effectively cross-party. This is a fundamental issue for the future of the UK and deserves to be made non-political with recommendations for the long term. Previous reviews have produced long term plans which have been implemented when they had cross-party support and straddled a General election. 

Sir Adrian Webb was an academic at the London School of Economics and Loughborough University; he was Deputy Vice Chancellor at Loughborough and Vice Chancellor at the University of Glamorgan. As well as holding a number of senior management positions and a wide range of public service/consultancy roles in local and central government (including HM Treasury, DHSS, Home Office, DFES, and the Ministry of Justice) and in Wales, he has also held many roles in the Third Sector. Sir Adrian was a member of the Dearing Review committee in the late 1990s and chaired a review of further education colleges and funding in Wales in 2007. 

The views expressed in this article are those of the author and do not necessarily represent the views of any organisation with which the author is affiliated.  


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Moving with the times: The growing need for better graduate mobility data

by Tej Nathwani

Introduction

As SRHE noted in their summary of the theme of the 2022 conference, one of the current areas of discussion is the relationship between student mobility and outcomes. For example, the Institute for Fiscal Studies (IFS) have used the Longitudinal Education Outcomes dataset to explore trends in graduate mobility and earnings in England. While mobility is correlated with individual destinations, there are also wider macroeconomic consequences resulting from the extent to which graduates move around the country.

In a separate paper by the Resolution Foundation and the Centre for Economic Performance, researchers at the two organisations highlighted how one of the key factors that explains variations in productivity across areas are human capital levels – measured by the share of graduates in the locality. Hence, while providers can help with widening participation and upskilling the labour force in our most deprived regions, the full benefits of this for the vicinity may only be realised if those individuals who study in higher education choose not to move out of the area or region. One of the consequences of this is that providers are increasingly working with employers to try and ensure graduates can utilise their skills in the local economy (for example at Sheffield Hallam).

Given the state of the UK economy and the role mobility may have on individuals and growth, this is a topic that will remain salient in forthcoming years. However, even before we think about the association between mobility and outcomes, the first question to consider is how data might help us to better understand the extent to which graduates move for study and/or work. Historically, exploration of graduate movements has been at a regional level, which has become less relevant and valuable at a time when interest also lies in inequalities within regions, as well as between them. This blog will thus focus on a new marker HESA has generated to help our users gain more detailed insights into mobility.

The current problem

Patterns of regional migration and the categorisation of graduates into different groups based on this was first explored by Prospects back in the mid-2000s. One of the limitations of using such an aggregated level of geography, however, is that Wales, Scotland and Northern Ireland are all classified as individual regions. This means we are unable to examine what mobility is like within these nations. To see the drawbacks for investigating mobility in England using region, consider the neighbouring areas of Bradford and Leeds – both of which are within Yorkshire and The Humber. As the ONS regional economic activity data illustrates, there has been a divergence in the economic performance of these two places over the last twenty years. Hence, a graduate originally from Bradford who studies at the local university, but then moves for work to Leeds would be allocated to the same group in a regional analysis as one who initially lives, studies and is then employed in Bradford. With the graduate share being a key factor in understanding the differences in economic performance between areas, the possibility of distinguishing between graduates who remain in areas of low economic activity and those who move out of such localities for work is growing in importance.

A potential solution

HESA collect the postcode at which the individual resides prior to starting higher education and also request similar data from the graduate in the Graduate Outcomes survey regarding their location of employment (if they don’t know the postcode for their employment location, we ask the graduate to provide the town/city/area in which they work). There is therefore the potential to map these postcodes to local authority data (and their equivalents in Scotland and Northern Ireland). Using local authority of residence/work and region of study, we have created a mobility marker consisting of the following seven categories:

  1. Stays in same region for study and finds work in the same local authority as original location of residence
  2. Returns to the same local authority for work as original location of residence, having left region/country for study
  3. Stays in same region for study, but finds work in different local authority (in the same region) to original location of residence
  4. Returns to a different local authority (of the same region) for work when compared with original location of residence, having moved region/country for study
  5. Moved region/country for work, but did not move region for study
  6. Moved region/country for study, but did not then move region/country again for work
  7. Moved region/country for study and then moved region/country again for work (with the region/country being different to their original region/country of residence)

Going back to our original example of the two graduates from Bradford (one who moves for work and one who doesn’t), this new classification ensures they are no longer placed in the same group. Rather, one is allocated to category A, while the other is assigned to C. Such distinctions will help improve our awareness of overall patterns of mobility across time.

Concluding thoughts

Our initial exploration into mobility and job quality suggests that migrating for employment is correlated with graduates finding a role that fits better with their career plans. With similar findings on the benefits of moving for work from a salary perspective also being reported by the IFS, this could potentially leave those aiming to reduce disparities in economic performance between areas with a conundrum. Policies aiming to upskill the labour force in more deprived areas and help reduce spatial inequalities require these individuals to remain in such neighbourhoods. Yet current evidence suggests that moving for work is associated with more positive outcomes for these people. Given the relevance to policy aims, as we continue to collect increasing amount of data on graduates through our annual Graduate Outcomes survey, we shall be exploring the potential to map how mobility differs by area (eg by investigating whether we have adequate sample size at more granular levels of geography). If this does prove feasible, this will help end users with ascertaining the extent to which localities with lower output are gaining/losing graduates.

High levels of inequality and poor growth are two key concerns for the UK economy. We hope that the development of new measures on deprivation and graduate mobility can help the higher education sector with tackling these issues and assist providers in capturing the wider impact they are making in society.

Feedback on our mobility marker is most welcome. Please send these to pressoffice@hesa.ac.uk.

To learn more about Graduate Outcomes, visit www.graduateoutcomes.ac.uk or view the latest national level official statistics.

To be kept updated on our publication plans and latest research releases, please join our mailing list.

Tej Nathwani is a Principal Researcher (Economist) at HESA, which is now part of Jisc.


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What do students think about value for money?

by Kristina Gruzdeva

In 2022, the cost of living crisis meant communities across the UK had to adjust their behaviours and their spending. Many needed to learn to navigate within a complex energy market. Prospective university students were in a similar position, being expected to make a cost-conscious decision about their degree education with limited understanding of their options. In research conducted for my PhD, I invited first-year students to participate in focus groups to explore their orientations to their degree. Students were recruited through online and on-campus campaigns that were run in the autumn of 2019/20. The overall sample consisted of 51 participants (39 female, 10 male and 2 non-binary; 28 from ethnic minority groups; 14 were ‘first in family’ students). All participants were first-year students who started their degree at a Russell Group University, with a balance across all five faculty groupings in the university. I developed a typology to show how students perceive their degree, their beliefs about the financial implications of going to university and how they define value for money. In England, undergraduate fees of £1000 were introduced more than 20 years ago, raised to £3000 in 2006, and to £9000 more than ten years ago. My findings suggest that even now, five years after the Higher Education and Research Act legislated for an HE market, it is problematic to rely on informed student choice as a basis for the market’s operation.

Students in the first category of the typology view their degree as an essential requirement for their career. Students in this category are enrolled in STEM or Medicine courses and have a clear idea of what they would like to do upon graduation. Their family background is diverse, with some choosing to follow their parents’ footsteps, and others being first in their family to go to university. Students in this category hold shared views on employability, graduate salaries, and value for money. The data show that employability and career aspirations are important to first-year students transitioning into HE (Mullen et al, 2019). Metrics of graduate employability gave these students some reassurance and helped them to narrow down their options in choosing courses. These students did not look for information about graduate salaries and explained this by studying for a degree that leads to in-demand jobs. They comment that information about graduate salaries was “already there” when they looked for other kinds of information about their degree. Students who view their degree as an essential requirement report that their degree provides good value for money.

The second category of students described their degree as an investment. These students also had a career-oriented approach to their education, but their career plans were less defined compared with the plans of students in the first category. They studied a wide range of degree courses and came from diverse backgrounds. When asked about their awareness around employability, some students reported that they had come across information about it, whereas others said that they did not know much. When prompted to explain why they did not search for such information, these students suggested their career plans had not crystallised yet, so they were not sure how to interpret such information and to what extent it would be relevant to them. As in the first category, these students reported that they did not look for information about graduate salaries. They assumed such information would not be relevant because they had not yet decided what to do upon graduation. They had a mix of views on value for money. Some believed that their degree would offer good value for money because it would open doors to many opportunities, whereas others had a different opinion. Perceptions of poor value for money were related to instances when students’ expectations had not been met. For example, a few students had expected more contact hours. Others had expected that their maintenance loan would cover the costs of their accommodation.

The third category of students described their degree as a desirable experience. These students were enrolled in Social Sciences and Humanities courses. Importantly, these students came from families where at least one parent holds a degree. Their decision to study at university was driven by their academic interests or a belief that getting accepted onto a course would be easy. When asked about whether they considered employability metrics, these students said that they did not. They also did not look for information related to graduate salaries. One student, reflecting on her decision to study at university, suggested that prospective students had tunnel vision and were not concerned about their career prospects. Two individuals commented that education is not about jobs and appeared to look down on the other members of their discussion groups, who shared the view that their education offered knowledge and skills for work. There was a mix of views on value for money. The social and wider personal benefits of studying for a degree were attributed to good value for money. In this category it was rare to find perceptions of poor value for money; such perceptions came from unfulfilled expectations related to contact hours.

Student career aspirations, or lack thereof, played a dominant role in shaping students’ views on their education and how they perceived value for money. Most students in my study did not actively search for information related to employability or graduate salaries; rather, they assumed the economic value of their degrees. These findings challenge the consumer-oriented approach to HE because focus group participants did not appear to act as informed consumers, which is problematic in an HE sector supposedly driven by market imperatives.

Kristina Gruzdeva is a Research Facilitator at the University of Birmingham. Kristina’s research interests are in higher education policy, mainly in relation to student finance, student choices, and marketisation. This blog is based on a chapter from her recently completed PhD. Email: k.gruzdeva@bham.ac.uk


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New higher education institutions: a real chance to innovate?

by Katherine Emms

Since the 2017 Higher Education and Research Act, England has seen a surge of new higher education institutions adding to the traditional higher education  landscape. The Act made a number of major changes to the sector, one of which was the introduction of the Office for Students (OfS), which was given responsibility to grant degree-awarding powers to providers and the right to use ‘university’ in their title. The Act was intended to make it easier for more providers to enter the market, and in the words of the 2018 Universities Minister, Sam Gyimah, it was “designed to facilitate innovation, avoiding overly-prescriptive, process-focussed approaches that might place limitations on creativity”. The invitation was welcomed by a number of providers and now, a few short years later, some are already taking in their first cohorts of students. But are these institutions truly offering something different to students, facilitating innovation and diversification in a crowded marketplace, or just replicating existing models?

At The Edge Foundation we wanted to investigate the early experiences of these new higher education institutions (HEIs) and understand what their guiding principles and reasons for setting up were, as well as how they were interpreting their visions and putting these into practice. We have conducted a number of semi-structured interviews with founders and staff across several new HEIs, with more dialogue to follow as these institutions move through their early stages of operation.

Employability is increasingly seen as a responsibility of HE, not just as a separate task of the careers services but one which should be an integrated element within academic learning (Crammer, 2006). New HEIs have highlighted the gap between existing provision and employers’ needs, and see their offering as a way to address this issue, claiming that their innovative approaches could better support the employability of students. One way this has been tackled is through strong collaboration with employers from the outset of designing the course and its content. Some new HEIs emphasised the importance of a ‘backwards design’ which is demand (employer)-led rather than supply (academic)-led. Having industry experts involved in skills gap workshops and continuously having employer representatives as part of the validation process were some of the ways that supported this.

Most of the new HEIs we spoke to focus on broadness of provision in a number of senses. First and foremost, they set aside traditional subject silos and instead are looking to offer interdisciplinary or multidisciplinary degrees, or offer a broader notion to a single subject area (e.g. bringing the social science aspect into engineering). The arguments put forward were that complex world problems are not fixed within a single discipline and require a broad knowledge and skill set that spans disciplines in order to be solved. One way to support this broad provision is through staff recruitment at the new HEIs; staff are recruited partly from industry, partly from the world of academia, but ultimately having the right attitude and a team working ethos to work collaboratively across disciplines are considered key.

The broadness theme also plays out in terms of the development of the student. Looking beyond academic and knowledge-based learning, the development of the whole student is seen as core to their provision. All aspects are important – from ensuring the development of transferable skills that are integrated into the curriculum, to ensuring students take part in meaningful placements and have employer interactions to develop the ‘professional’ skills they need after graduation.

Another way these new HEIs are pushing back against traditional modes of delivery is through their focus on team work, and problem-based learning or project-based learning. Almost all our participants emphasised that their HEI has no lectures, instead focussing on students working together on authentic real-world issues often set by an external client, making them relevant to industry. Alongside this, exams are not the main form of assessment, instead a range of more ‘authentic’ methods were discussed including reflective portfolios, podcasts, blogs, and pitches to businesses.

These new HEIs vary across their stage of development, their size, mission, and delivery, although some common factors have been set out above. One thing that all the new HEIs have had to navigate was the registration and policy landscape. Some of these were partnering with or being ‘parented’ by an established university to go through the process and some were going at it alone. This brought differing issues and seemed to influence the degree of innovation they could deliver. To some extent working within the parameters of another university can stifle the innovation by having to fit their delivery into traditional and established ways. On the other hand, these established universities have the advantage of bringing credibility to the new HEIs, which can be beneficial both in terms of the registration process and the attractiveness to new students.

Ultimately these HEIs are new and are yet to see a full cohort of students graduate, therefore we have limited markers of success so far on which to evaluate them. Likewise it is difficult to see how innovative these providers are, as one stakeholder remarked: “innovative might be a great idea, but until it’s tested is much harder to understand whether it really is innovative”.Edge will continue with our research over the next year and beyond to understand more about the experiences of these new HEIs and their students.

Katherine Emms is a Senior Education & Policy Researcher at the Edge Foundation. Her main areas of research are in higher education, vocational education, skills shortages in the economy and employability skills. Current and published research can be seen here: https://www.edge.co.uk/research/research-team/kat-emms/. Twitter @kat_emms


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Silver linings but no silver bullet: Graduate careers in (times of) crisis

by Andrew Dorrance and Daria Luchinskaya

It should come to no-one as a surprise that the COVID-19 pandemic has changed the lives of students and graduates alike in an unprecedented way. The recent SRHE event Graduate Careers In (Times Of) Crisis, jointly organised by the Student Access and Experience and Employability and Enterprise and Work-based Learning Networks, explored the impacts of the pandemic on graduates’ transitions to work. While there have been scattered silver linings for students and graduates, many challenges remain. This blog summarises the key themes emerging from the event and discusses potential steps forward.

Introduction

The ‘Graduate Careers In (Times Of) Crisis’ event aimed to discuss the early impact of the pandemic on graduates’ experiences, to explore how careers advice, information and guidance has changed with physical distancing requirements, and to reflect on the broader labour market context (please see the section at the end for more details). The speakers contrasted findings from the ‘Class of 2020’ Graduating in a Pandemic project, that tracked the experiences of recent graduates with the longer-term experiences of the 2009/10 ‘Recession graduates’ from the Futuretrack project. Careers professionals discussed their responses to the pandemic and highlighted different projects aimed at helping students and graduates. There was a general sense, too, that the pandemic seems to have acted as a catalyst for reflection, among students, graduates, careers staff and other stakeholders.

Pandemic challenges

The pandemic seems to have exacerbated existing inequalities among students and graduates that then had different effects on their transitions to employment.

Digital inequality, where students and graduates struggle with access to sufficiently high-quality internet connections and personal devices, accentuates barriers to accessing education, job interviews and jobs that have moved online. Both Futuretrack and Graduating in a Pandemic found that there was vast difference between people’s experiences of working from home, accentuated by digital inequality and potentially the environment in which they can work.

There was also qualitative evidence of work placements, interviews and job offers ‘falling through’, with graduates reporting difficulties in doing their jobs and some even saying they lost their ‘perfect’ job offer. College graduates who undertook vocational courses orientated towards the service sector were particularly affected, and reported difficulties in finding or doing their jobs when in industries that were particularly affected by Covid-19 – for example, in events management or beauty therapy.  College graduates were also more likely to come from less advantaged backgrounds than university graduates.

Some graduates who would have, in other circumstances, joined the labour market, have been opting to go into education (eg graduate to postgraduate or college to degree-level) as a temporary solution to a lack of graduate job opportunities.

Ultimately, the labour market impact of the pandemic contributed to an increase in anxiety amongst students and graduates, particularly those studying subjects that required placements to complete their degrees, and those who were already facing disadvantages. These findings are consistent with what we know from the experiences of ‘recession graduates’ of 2009/10. Futuretrack and related research found that existing inequalities structured access to careers information, networks and useful resources and the ability to navigate the recession stemming from the crisis, and that these educational and social (dis)advantages were cumulative.

Silver linings

Despite these challenges, Graduating in a Pandemic found that around a third of graduates from 2020 were employed in or had been offered a job that was related to their intended career path (although such graduates were more likely to be from more advantaged backgrounds). For those working in the so-called ‘non-graduate’ jobs, it may be a matter of time before they move to more appropriate employment, although it remains to be seen hoe Covid-19 will affect different industries over the longer term.

The majority of Futuretrack’s ‘recession graduates’ had moved to ‘graduate’-level employment 9-10 years after graduation. Over half of those reported that it was exactly the type of job they wanted to do and over three quarters were generally satisfied with their jobs. However, even 9-10 years on from graduation, a substantial minority of Futuretrack graduates were not well integrated into the labour market and unsatisfied with their jobs. This less-well integrated group of graduates, as well as those who recently changed work and those working freelance and the self-employed, were perhaps more vulnerable to the (indirect) effects of Covid-19, for example, regarding job security or eligibility for furlough.

Reflection

The pandemic had also offered people a chance to reflect. Futuretrack graduates reported taking time to re-evaluate career priorities and life values. A small number of 2020 graduates whose job offers were impacted had indicated that the pandemic had given them the time to rethink their career path and look for and attain their ‘dream’ job rather than the ‘graduate’ job they would have done otherwise.

Careers services professionals found themselves in a ‘unique’ role as a link between HE, students, graduates and employers, and stepped up to the pandemic challenges. They worked hard to develop inclusive and innovative ways in supporting students and graduates. For example, online workshops and events improved accessibility and speaker availability. However, there were also challenges in attaining consistently high levels of attendance and ensuring that the services reached the students and graduates most ‘at risk’ of falling through careers service provision.

Careers services also developed new resources, for example focusing on virtual recruitment practices and work placements to address the changes to the recruitment and placements process as a result of the pandemic. Over the pandemic period, careers services were also able to learn what services work better online (eg using the shared screen feature to look at students’ CVs) or in-person, and to adapt as the pandemic unfolded, and continues to do so.

Looking forward

Fortunately, going forward there are perhaps tentative grounds for positivity, as student recruitment had seen an uplift and employers were becoming optimistic about growth in the short-term with opportunities for graduates coming into the labour market. However, there were also concerns around the ongoing uncertainty around the unfolding impact of the pandemic. It was also clear that not all graduates were motivated by financial gain, which led to a discussion about including social returns in measuring the value of higher education in addition to the current focus on individual labour market outcomes.

We know that it is taking longer for graduates to find an ‘appropriate’ job in the labour market. Time will tell whether graduates of the pandemic will settle into the labour market like the graduates of the 2009/10 recession eventually did. For the moment, offering accessible careers support to students and graduates, while highlighting areas of inequalities in labour market entry, the experience of work, and the mental and physical health of students and graduates to inform policy, remain ways in which we can help pandemic graduates navigate their post-graduation transitions.

Andrew Dorrance is an Undergraduate Student in Economics in the Adam Smith Business School, University of Glasgow, and Research Assistant for the Graduating in a Pandemic research project.

Daria Luchinskaya is a Lecturer at the Department of Work, Employment and Organisation, University of Strathclyde, co-convener of the SRHE Employability, Enterprise And Work-Based Learning Network, and a member of the Graduating in a Pandemic research team. Follow Daria on Twitter @DariaResearch.

Further links and resources

The Graduate Careers In (Times Of) Crisis event was co-hosted by the Student Access and Experience and Employability and Enterprise and Work-based Learning Networks and took place on 16 June 2021. The aim of the event was to provide evidence from the UK on the early impact of the pandemic on graduates’ experiences, and to explore how careers advice, information and guidance has changed with social distancing, as well as reflecting on the broader labour market context. Presentations by Scott Hurrell (Senior Lecturer, University of Glasgow) on the class of 2020 (Graduating in a Pandemic) and Kate Purcell (University of Warwick Emeritus Professor) on the class of 2009/10 (Futuretrack) highlighted research findings about graduates’ early and mid-careers. Susan Bird (Careers & Employability Manager, University of Edinburgh) and Rachel Firth (Employability Consultant, Sheffield Hallam University) presented the experience of careers professionals’ responses to the pandemic. The event attracted a diverse audience, including academics, careers professionals, and representatives from think tanks and employer organisations.

Graduating in a Pandemic is investigating the post-graduation activities of the class of 2020 and 2021. It is run by researchers at the University of Glasgow and the University of Strathclyde (PI Dr Scott Hurrell). See the project website at: https://graduatinginapandemic.wordpress.com/

Futuretrack is a nationally-representative longitudinal survey of applicants to full-time HE in 2005/06, run by Professors Kate Purcell and Peter Elias at the Institute for Employment Research, University of Warwick. Findings from the longitudinal projects and published reports, including research reports from Stage 5 (2012 – 2019) and Stage 6 (2019 – 2020), can be accessed via https://warwick.ac.uk/fac/soc/ier/futuretrack/findings

A report co-authored by Shelagh Green, Director, University of Edinburgh Careers Service, ‘Careers Services in times of Covid-19’ (March 2021), COIMBRA Group can be accessed at: https://www.coimbra-group.eu/wp-content/uploads/Career-services-in-times-of-Covid-19.pdf

The University of Edinburgh Careers Compass resources: https://www.ed.ac.uk/careers/students/undergraduates/careers-compass

Sheffield Hallam University careers services resources: https://www.shu.ac.uk/careers/


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Paid, unpaid and hidden internships: still a barrier to social mobility

By Wil Hunt

New evidence suggests graduates from less privileged backgrounds are still at risk of being locked out of certain key industries such as cultural, political and extraterritorial organisations, the media and legal professions. Graduate internships have been the subject of considerable debate for more than ten years. Yet, despite media and policy interest on the topic there is still a lack of generalisable quantitative data on the prevalence of the practice and, particularly, on the question as to whether some groups are being excluded. Back in 2009, the final report of the Panel for Fair Access to the Professions (Milburn, 2009) argued that taking part in an internship after leaving university was often an ‘essential’ first career step in many professions but raised concerns that access was often a question of who you know, not what you know, and whether graduates had the financial means to work for free for a significant period of time.

Fast forward eleven years and while there has been some research on the topic there have still only been generalisable quantitative studies looking at graduate internships in the UK. This is in no small part down to the fact that the main statutory surveys, such as the Labour Force Survey, fail to capture internships as a separate employment category. The Destinations of Leavers from Higher Education (DLHE) survey, has been one notable exception to this, capturing internships since the 2011/12 graduating cohort. Other exceptions include the Futuretrack study, which has followed a cohort of first degree applicants since applying to university in 2006, and one or two one-off surveys.

Studies using data from these sources have shown that unpaid internships do not confer the same advantages as paid internships or university work placements in accessing the best jobs, have a negative impact on earnings and may even reduce the chances of having a graduate job in the short to medium term (Purcell et al, 2012; Holford, 2017; Hunt, 2016). Thus, unpaid graduate internships may not be the ‘invaluable’ ‘leg-up’ claimed by some MPs when talking out the 2016 private members bill that sought to outlaw unpaid internships (Hansard, 4 November col 1156-1226). The same quantitative studies also suggest that access to internships is moulded by a range of factors including social class and educational background, although not always in the way one might expect (Hunt and Scott, 2018).

More recent attempts to assess the situation have been hampered by the measurement problems noted above. The Sutton Trust have made two commendable attempts to estimate participation internships at six months after graduation using the DLHE for the 2012/13 and 2015/16 cohorts (Sutton Trust, 2014; Montacute, 2018). However, these studies underestimated the proportion of unpaid internships by not fully accounting for item non-response in questions about pay in the DLHE and not measuring internships reported as ‘voluntary’ jobs. Examples of ‘voluntary’ jobs identified in the 2011/12 DLHE included: web design and development professionals; conservation professionals; legal professionals; management consultants; journalists; PR professionals; architects; and artists (Hunt and Scott, 2020). Hardly the kinds of work for good causes the voluntary work exception in minimum wage legislation was intended to preclude (Pyper, 2015). When these ‘hidden’ internships were counted in the 2011/12 DLHE 58% of graduates doing an internship at six months after graduation were unpaid – far more than previously estimated (Hunt and Scott, 2020).

Now the DLHE has been replaced by the Graduate Outcomes survey we will only know about graduate internships occurring at 15 months after graduation, after many have been completed. The 2016/17 DLHE, therefore, represents an opportunity to reassess the situation and see how things have changed since 2011/12. The current analysis of the 2016/17 DLHE, funded by SRHE, shows that while the number and proportion of graduates doing an internship at six months after graduation is the same as for the 2011/12 cohort, the number of ‘hidden’ internships has halved from 1,375 to 650 and the proportion of internships that are unpaid has declined from 58% to 36%.

Whilst the decline in unpaid internships is welcome, they still account for more than a third of internships at six months after graduation and this figure is substantially higher in certain key industries and occupations, such as:

  • activities of extraterritorial organisations (eg EC, UN, OECD) (92%);
  • membership organisations (which would include unions and political parties) (70%);
  • libraries, museums and cultural activities (69%);
  • programming and broadcasting (69%);
  • legal associate professionals (69%);
  • conservation and environmental associate professionals (67%); and
  • government and related administrative occupations (including NGOs) (63%).

Findings from other, less generalisable, surveys suggests that the number of graduates engaging in an internship at some point is only likely to increase during the first few years after graduation and, again, many of these are likely to be unpaid (Hunt and Scott, 2018; Cullinane and Montacute, 2018). The most striking findings from the current research, however, are from the multivariate analysis of participation patterns. This analysis shows that, after controlling for the other factors in the analysis, having better grades or studying at a prestigious university increases the chances of securing a paid internship six months after graduation, whereas coming from a higher socio-economic background increases the odds of doing an unpaid internship.

These findings show that, whilst unpaid internships appear to be declining in most sectors, they are still a key access route in some key industries and occupations and that this is likely to present a barrier to entry for less privileged graduates. The fact that graduates with better grades or from more prestigious institutions are more likely to do the paid internships reinforces findings from previous studies that suggest paid internships are more competitive and sought after. The findings also show that participation in graduate internships, paid or unpaid, is more commonplace in less vocational subjects, such as mass communication and documentation, historical and philosophical studies and creative arts and design. This may suggest that graduates of these subjects feel more need to supplement their educational qualifications with internships to ‘get ahead’ in an increasingly competitive graduate labour market.

Dr Wil Hunt is a Research Fellow at the ESRC-funded Digit Research Centre at the University of Sussex. His research interests centre around the higher education, the graduate Labour market and the impact of new digital technologies on the world of work.

This blog reports on research funded by SRHE as one of its 2018 Member Award projects.

References

Cullinane, C and Montacute, R (2018) Pay as You Go? Internship pay, quality and access in the graduate jobs market London: The Sutton Trust

Hansard HC Deb vol 616 col 1156-1226 (4 November 2016) National Minimum Wage (Workplace Internships) Bill [Electronic Version]

Holford, A (2017) Access to and Returns from Unpaid Graduate Internships IZA Discussion Paper No 10845 Bonn: IZA Institute of Labor Economics

Hunt, W (2016) Internships and the Graduate Labour Market PhD thesis, University of Portsmouth

Hunt, W and Scott, P (2018) ‘Participation in paid and unpaid internships among creative and communications graduates: does class advantage play a part?’ In Waller, R Ingram, N and Ward, M (2018) (Eds.) Degrees of Injustice: Social Class Inequalities in University Admissions, Experiences and Outcomes London: BSA/Routledge

Hunt, W and Scott, P (2020) ‘Paid and unpaid graduate internships: prevalence, quality and motivations at six months after graduation’ Studies in Higher Education 45(2): 464-476

Milburn, A (chair) (2009) Final Report of the Panel on Fair Access to the Professions London: The Stationery Office

Montacute, R (2018) Internships – Unpaid, unadvertised, unfair Research Brief London: The Sutton Trust

Purcell, K, Elias, P, Atfield, G, Behle, H, Ellison, R, Luchinskaya, D, … Tzanakou, C (2012) Futuretrack Stage 4: Transitions into employment, further study and other outcomes (Full Report). (HECSU Research Report) Manchester: Higher Education Careers Services Unit (HECSU)

Pyper, D (2015) The National Minimum Wage: volunteers and interns. Briefing Paper Number 00697. London: House of Commons Library.

Sutton Trust (2014). Internship or Indenture? Research Brief London: The Sutton Trust