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Finding the right path: Improving career prospects for non-graduates

Alan Milburn, Chair of the Social Mobility and Child Poverty Commission

Lorna Unwin, Professor Emerita at the UCL Institute of EducationTorsten Bell, Director of the Resolution Foundation

David Finch, Senior Economics Analyst at the Resolution Foundation

@resfoundation / #nongradsWifi: 2QAAG_guest p: W3lc0m3!!

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Finding your routes

Non-graduates in the UK labour market

May 2016

@resfoundation @davidfinchrf

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NON-GRADUATES & THEIR

OUTCOMES

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Graduates: Level 4 plus qualifications

Non-graduates:– Level 3 academic (A-Level) &

vocational– Level 2 academic (5 A*-C GCSEs) &

vocational

Low skilled: Level 2 and below qualifications

Defining the non-graduate population

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Non-graduates represent forty per cent of the workforce, but are often overlooked

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Hourly pay rises with qualification type for men…

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…but little gain for women with vocational qualifications

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PROGRESSION

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Spreading success: The sector you work in matters

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Spreading success: vocational qualifications do better in traditional sectors

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Spreading success: performance worse in other sectors

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Unblocking routes: The downturn hit all earnings regardless of qualifications

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Unblocking routes: But hurt younger cohorts at a key part in their careers

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Unblocking routes: Pressure on promotion opportunities for non-graduates

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“In my industry [sales], I've been held back by not having a degree. I've seen people who have a degree move on into better positions.

They don't care what the degree is in, they just take them on and pass them through. They're absolutely useless at their job. Having a degree just opens the door, it doesn't matter what it's in.

I've had to fight my corner and use [my] equivalent experience.”

Focus groups felt there was an employer preference for graduates

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New routes: For men staying in-work, upskilling & the right sector help boost progression chances

Gained a graduate qualification

Working mostly in Education, Construction & Real Estate

Working in a large firm Years of managerial responsibility

Years of being in work

Years of job-related training

Reported that future looks good

Longer commuting time Level 3 academic qualification

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New routes: Downward factors relate to the wrong sector or losing your job

Years sacked or redundant

Working mostly in retail & wholesale sector

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New routes: Similar factors boost the earnings of women with schooling route also playing a role

Gained a graduate qualification

Working in a large firm

Years of managerial responsibility

Years of job-related training

Attended a grammar or private school

Level 3 academic qualification

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New routes: But motherhood brings a pay penalty, with too few paths back to higher pay

Years caring for a child aged 3 and under

Working mostly in retail & wholesale or Other

Services sector

Has disability

Years worked

part-time

Working mostly in Process operative or

craft occupations

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CONCLUSIONS

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• Spread successful routes: Improved careers advice, ensuring good quality vocational routes into sectors

• Re-open blocked pathways: Better matching of graduates into graduate roles & unwinding effect of recession on pay

• Create new routes: Creating better paid flexible, part-time roles for women in particular

One-off chance with Apprenticeship Levy & Skills White Paper to boost skills demand and simplify non-graduate routes

Three key pathways to improved outcomes

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Finding your routes

Non-graduates in the UK labour market

May 2016

@resfoundation @davidfinchrf