More than 700,000 college graduates are out of labor and claiming welfare advantages, new evaluation by a assume tank suggests.
The Centre for Social Justice (CSJ) stated 400,000 graduates weren’t in work and claiming Universal Credit, in keeping with the most recent statistics.
There had been 240,000 graduates who stated they might not work on account of well being causes, the assume tank stated, with that determine having greater than doubled since 2019.
The authorities says it’s investing cash in getting younger folks into work, and has commissioned a overview into “what’s holding the younger generation back”.
The CSJ used the Office for National Statistics’ Labour Force Survey, together with information from the Department for Work and Pensions, to analyse figures from earlier than and after the Covid pandemic.
It stated 707,000 graduates aged 16 to 64 had been out of labor and claiming a number of advantages in 2024, a rise of greater than 200,000 – or 46% – since 2019.
The variety of these claiming Universal Credit was 400,000, whereas virtually 240,000 of the 700,000 stated they had been off work on account of illness – a determine which has greater than doubled from 117,000 since 2019, the CSJ stated.
Universal Credit is a means-tested profit and goals to assist with dwelling prices for folks of working age who’re on a low earnings, out of labor, or unable to work.
About 8.3 million folks claimed the profit in October 2025, in keeping with authorities figures.
The CSJ, which was based by Conservative MP Sir Iain Duncan Smith, stated about 110,000 graduates below the age of 30 now declare a minimum of one profit with out being in work.
The newest graduate labour market statistics, printed in June, recommend 88% of working-age graduates in England had been in employment in 2024. The determine for non-graduates was 68%.
But Sir Iain stated the out-of-work figures confirmed the results of an schooling system “obsessed” with college, which he stated ignored vocational coaching and a altering job market.
The CSJ stated in its report that one in three British college students on a college course obtain vocational coaching.
It additionally stated degree 4 apprentices earn £5,000 extra on common than college graduates after 5 years.
Daniel Lilley, a senior researcher with the CSJ, stated younger folks wanted to be given “the opportunity to succeed and fuel key industries with the domestic skills they need to grow”.
A authorities spokesperson stated: “Graduate inactivity is at its lowest rate on record, but we’re determined to go further to support young people into work and gain the skills they need to succeed.
“Through our new Jobs Guarantee, we’re serving to younger people who find themselves out of labor discover paid placements, with employers resembling E.ON, JD Sports, Tesco and TUI having already pledged their assist.
“We’re investing £1.5bn to get hundreds of thousands of young people earning or learning, including through an expansion of apprenticeships and training.
“We’ve additionally commissioned the previous Health Secretary Alan Milburn to guide a overview to get to the basis of what is holding the youthful technology again, as a result of we consider in tackling this complicated challenge with urgency.”
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