Most graduates will take more than a decade to get their finances in shape following loans and top-up fees. The credit crunch is hitting finance and construction (two major graduate industries). So is a degree still a good investment?
Until recently there has been little doubt about the value of higher education. Surveys by the DfES show that people with a higher education qualification earn, on average, 50% more than people without and graduate skills are also in more demand by employers than ever before. Incomes Data Services (IDS) have reported that overall graduate vacancies are predicted to rise by 12.2% this year, despite the credit crunch.
But just having a degree is not a guarantee of a good job. Few people would be surprised to find that graduates from vocational subjects, such as medicine and civil engineering, tend to do well in the job market. However, many are surprised to find that a subject like media studies has consistently higher graduate employment than a subject like IT. A degree opens doors but a lot depends on both what the degree is and the skills and abilities the graduate has.
Are there alternatives to full-time study?
Not all of those who opt not to study full-time will have poorer pay and prospects in the long-term. Despite the expansion of higher education there are still Central London employers offering jobs with good prospects to those with A Level or equivalent qualifications. This year, for example, the Bank of England offered an A Level entrant programme and a number of accountancy firms had opportunities that could lead to professional qualifications. In construction and engineering there were opportunities to combine training on-the-job with part-time study for degree or professional qualifications.
Young people in Central London are often more reluctant to consider none-graduate options than those in other parts of the UK. One consequence of this is that there are still employers looking to fill some good A Level opportunities (on www.lois.uk.net) with those having second thoughts about HE.
Will a degree continue to be a good investment?
Of course, the credit crunch is having an effect on both graduate and A Level recruitment in finance. IDS reports that finance firms are planning to take on 14.7% fewer graduates this year and at least one bank has stopped recruiting A Level trainees in London. Graduate salaries now look likely to rise in line with the cost of living, rather than leaping ahead. However, many banks continue to take graduates and school and college leavers into customer service jobs. For those considering HE, predictions are that the downturn will be over by the time they graduate.
Obviously, doing a degree is not solely about financial rewards but, according to the report ‘Seven Years On: Graduate Careers in a Changing Labour Market’ "...even in narrow economic terms, there is a long way to go before a degree is likely to become a poor investment". The expansion of higher education in recent years has not led to a widespread movement of graduates into lower paid jobs with poor career development prospects.
It is important for potential undergraduates to find out the facts about their chosen degree and not rely on hearsay. For those who do not wish to continue studying full time it is still possible to break into London’s specialised and professional labour market but it will mean combining work with study and training.
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