Find the right path: improving career prospects for non-graduates

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1. Finding the right path: Improving career prospects for non-graduates Alan Milburn, Chair of the Social Mobility and Child Poverty Commission Lorna Unwin, Professor…
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  • 1. 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 Education Torsten Bell, Director of the Resolution Foundation David Finch, Senior Economics Analyst at the Resolution Foundation @resfoundation / #nongrads Wifi: 2QAAG_guest p: W3lc0m3!! 1
  • 2. Finding your routes Non-graduates in the UK labour market May 2016 @resfoundation @davidfinchrf 2
  • 3. 3 NON-GRADUATES & THEIR OUTCOMES
  • 4. 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 4 Defining the non-graduate population
  • 5. Non-graduates represent forty per cent of the workforce, but are often overlooked 5
  • 6. Hourly pay rises with qualification type for men… 6
  • 7. …but little gain for women with vocational qualifications 7
  • 8. 8 PROGRESSION
  • 9. Spreading success:The sector you work in matters 9
  • 10. Spreading success: vocational qualifications do better in traditional sectors 10
  • 11. Spreading success: performance worse in other sectors 11
  • 12. Unblocking routes:The downturn hit all earnings regardless of qualifications 12
  • 13. Unblocking routes: But hurt younger cohorts at a key part in their careers 13
  • 14. Unblocking routes: Pressure on promotion opportunities for non-graduates 14
  • 15. “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.” 15 Focus groups felt there was an employer preference for graduates
  • 16. New routes: For men staying in-work, upskilling & the right sector help boost progression chances 16 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
  • 17. New routes: Downward factors relate to the wrong sector or losing your job 17 Years sacked or redundant Working mostly in retail & wholesale sector
  • 18. New routes: Similar factors boost the earnings of women with schooling route also playing a role 18 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
  • 19. New routes: But motherhood brings a pay penalty, with too few paths back to higher pay 19 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
  • 20. 20 CONCLUSIONS
  • 21. • 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 21 Three key pathways to improved outcomes
  • 22. Finding your routes Non-graduates in the UK labour market May 2016 @resfoundation @davidfinchrf 22
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