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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 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
Finding your routes
Non-graduates in the UK labour market
May 2016
@resfoundation @davidfinchrf
2
3
NON-GRADUATES &
THEIR OUTCOMES
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
Non-graduates represent forty per cent of the
workforce, but are often overlooked
5
Hourly pay rises with qualification type for men…
6
…but little gain for women with vocational
qualifications
7
8
PROGRESSION
Spreading success:The sector you work in matters
9
Spreading success: vocational qualifications do
better in traditional sectors
10
Spreading success: performance worse in other
sectors
11
Unblocking routes:The downturn hit all earnings
regardless of qualifications
12
Unblocking routes: But hurt younger cohorts at a key
part in their careers
13
Unblocking routes: Pressure on promotion
opportunities for non-graduates
14
“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
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
New routes: Downward factors relate to the wrong
sector or losing your job
17
Years sacked or redundant
Working mostly in retail &
wholesale sector
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
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
CONCLUSIONS
• 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
Finding your routes
Non-graduates in the UK labour market
May 2016
@resfoundation @davidfinchrf
22

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

  • 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
  • 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
  • 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
  • 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