Graduate outcomes remain resilient despite challenging economy

New figures from the Higher Education Statistics Agency (HESA) show that 87% of graduates from the 2023/24 cohort were in employment or further study 15 months after graduating, broadly in line with recent years despite a period of weak economic growth and falling GDP per capita

The data reflects a cohort entering the labour market during a period of subdued economic performance. UK GDP grew by just 0.3% in 2023 and 1.0% in 2024, while business investment and hiring remained cautious.

While overall graduate outcomes have remained strong, the data also highlights variation by subject area and geography, underlining the different experiences graduates face as they enter the labour market.

Commenting on the figures, Dr Joe Marshall, Chief Executive of NCUB, said:

“We know that this is a challenging time for the economy and a changing time for the labour market. Against that backdrop, it is encouraging to see that graduate outcomes remain resilient, with the overwhelming majority of graduates progressing into employment or further study.

“This resilience has not happened by accident. Universities have worked hard, alongside employers and other partners, to adapt to changing labour market needs and develop new and innovative ways to prepare students for the world of work. Across the sector, we have seen growing employer partnerships, placements, work-based learning and other opportunities that help students build the skills and experience they need to succeed.

“At the same time, we should recognise some of the nuance within the data. Graduate unemployment has increased slightly, and outcomes do vary across different subjects. While the overall picture remains positive, the transition into work feels harder for some graduates than it did a few years ago, and we should not be complacent about that reality.

“The conversation about graduate outcomes must not begin and end with universities. Graduate success reflects the strength of the wider economy, the opportunities available to young people, and how effectively universities, employers and policymakers work together to develop and deploy talent.

“If the UK wants stronger growth, higher productivity and greater competitiveness, helping graduates succeed remains a critical part of the answer. That means continuing to invest in the partnerships that connect education to opportunity and ensuring that talented people can apply their skills in every part of the economy.

“No university can achieve this alone. Creating more opportunities for graduates and ensuring their skills are fully utilised requires genuine collaboration between universities, employers, government and other education providers. The institutions achieving the strongest outcomes are often those embedded within rich networks of partnership. Our challenge now is to build that approach at a national scale.”

Notes to editors:

87% of graduates with permanent residence in UK were in employment or further study 15 months after graduation.

Graduate unemployment increased slightly, though still rounds to 5%.

Unemployment reached 10% among Computing graduates and 8% among Business and Management graduates.

67% of postgraduate Physical Sciences graduates were in full-time employment, compared with 47% of undergraduates in the same field.

Graduate satisfaction remained high, with 73% of graduates reporting they felt satisfied or very satisfied with their lives 15 months after graduating.