Prime Highlights:

• Over 700,000 UK graduates are out of work or receiving benefits, raising concerns about youth employment.
• The government is taking action with programs like the Jobs Guarantee and a £1.5 billion investment in apprenticeships and training.

Key Facts:

• 400,000 graduates are claiming Universal Credit, while nearly 240,000 cannot work due to health reasons.
• The number of graduates receiving benefits has risen by 46% since 2019, showing a significant increase in graduate inactivity.

Background:

A new report from the Centre for Social Justice (CSJ) shows that over 700,000 UK graduates are out of work and getting benefits, showing how hard it is for young people to find jobs.

The CSJ says that 400,000 graduates are claiming Universal Credit, while almost 240,000 are unable to work because of health reasons, a number that has more than doubled since 2019. Overall, the total number of graduates aged 16 to 64 receiving benefits rose by 46% between 2019 and 2024, an increase of over 200,000 people.

The report draws attention to the outcomes of an education system that, according to experts, has been heavily focused on university courses while vocational training options remain underutilised. The CSJ found that only one in three British university students receives vocational training, despite evidence that level four apprentices earn, on average, £5,000 more than graduates after five years.

Sir Iain Duncan Smith, founder of the CSJ, said the statistics reflect the need for a broader approach to education that better prepares young people for the changing job market. He said it’s important to give graduates practical skills and create opportunities in industries that need local workers.

The UK government emphasised its commitment to addressing graduate inactivity. A spokesperson noted that graduate inactivity is currently at its lowest rate on record but pledged further support. The government is taking action with the Jobs Guarantee programme, working with companies like Tesco, JD Sports, and E.ON, and investing £1.5 billion in apprenticeships and training. Former Health Secretary Alan Milburn has also been asked to lead a review to find out what is holding young people back.

Labour market statistics indicate that while 88% of working-age graduates in England were employed in 2024, compared with 68% of non-graduates, the CSJ warns that targeted support is needed to ensure all graduates can find meaningful work.

Daniel Lilley, senior researcher at CSJ, added: “Young people need opportunities to succeed, and practical training can fuel key industries while supporting their career growth.”

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