University degrees – are they worth the cost?

college graduates group

By Heather Cameron

Often cited as the best path to a successful career, university degrees continue to come under the spotlight with questions over their actual value, particularly with tuition fees now starting to increase.

Millions of young people who received their exam results last month will be weighing up their options. But what was perhaps once a fairly straightforward decision for many, is made far more complex by the modern financial burden of undertaking a degree, coupled with the availability of alternative routes without the prospect of accruing tens of thousands of pounds worth of debt in the process.

Cost

It certainly isn’t a cheap option to pursue a university degree. For 2017, many colleges/universities across the UK will be able to charge tuition fees of up to £9,250. And this doesn’t include the living costs of student life. The National Union of Students (NUS) has estimated that the average annual cost of living in England (outside of London) for students is £12,056.

Recent YouGov Omnibus research, which surveyed more than 500 current students and recent graduates, found that one in three recent graduates disagreed that the “costs of going to university were worth it for the career prospects/learning I gained”. It also identified ‘significant pessimism’ among both graduates and students over loans and whether they will ever be free of the burden of repayments during their working life. A large proportion (41%) don’t expect to ever pay off their student loan.

However, it was also noted that many recent graduates may have false expectations about how much they will have to pay back. More than four in ten (41%) said they didn’t understand how the interest rate on student loans works.

Research into the number of ‘contact’ hours a student receives over the course of their degree has been suggested to support the opinion that it is not good value for money. The average humanities student will have around 10 hours per week of scheduled ‘contact’ time in lectures and seminars, although it is often less. And there is much variation across subject areas, which is not reflected in tuition fees. According to an economics lecturer at the New College of the Humanities in London, “It certainly seems like humanities students are subsidising Stem [science, technology, engineering and maths] students.”

Job prospects

In addition to the cost of doing a degree featuring in the decision to pursue this path, the employment prospects following a degree have also received attention.

A recent study from the Institute for Fiscal Studies (IFS) found that there is a great deal of diversity among graduate earnings. While almost all institutions have graduates with earnings above the 20th percentile of the non-graduate earnings distribution, and most institutions have graduates with earnings above the non-graduate median, graduate earnings for men at more than one in 10 universities were lower than for non-graduates. And earnings for graduate women were found to be worse at nine institutions of the 166 included.

The findings also show that that graduates who came originally from wealthier backgrounds earned significantly more than their poorer counterparts ten years after graduation, even if they had studied the same course at the same institution.

This also raises questions over the value of a degree, particularly for those students from poorer backgrounds.

Having a degree certainly doesn’t guarantee a job with a competitive salary at the end of it, or indeed even a job at all as previous research has shown. Nevertheless, the IFS findings do highlight that higher education does pay for the majority, with graduates more likely to be in work and earn more than non-graduates.

Satisfaction

Satisfaction with degrees among students has shown to be relatively high overall. The latest annual Student Academic Experience Survey reveals that most students believe they are learning ‘a lot’ and perceptions of teaching quality are rising.

However, the survey also shows there continues to be a downward trend in perceptions of value, which has been highlighted as a particular concern. The percentage of students who think university is not value for money has almost doubled in the last five years.

The wellbeing of students also continues to be relatively low compared to the rest of the population and the majority oppose the high-fees model of funding.

Final thoughts

The cost of pursuing a degree along with the evidence on graduate earnings suggests that higher education may no longer be the leveller it once was perceived to be. Rather, it may appear that university degrees are once again becoming a path only for those from the richest households.

Clearly there is a lot for policy-makers to consider.


If you enjoyed this blog post, you may also like our previous post on graduate employment.

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The rise in youth markets – “transforming town and city centres with the creativity of young people”

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Credit: National Market Traders Federation (NMTF)

By Heather Cameron

As we recently reported, despite being around for centuries, and following a decline during the recession, traditional retail markets have experienced something of a revival in recent years, with a new generation of innovative young traders coming to the fore.

Latest figures indicate the sector has a collective turnover of £2.7 billion a year from around 32,000 market traders – a gradual increase of around £200 million year on year since 2013.

The last five years has also witnessed the emergence of youth markets and ‘The Teenage Market’ initiative, which are generating income for young people and teaching them valuable entrepreneurial lessons, as well as transforming town and city centres.

Specialist market boom

But this revival is not wholly in the traditional sense of the market sector. Young people entering the sector tend to trade at festivals, fairs and shows rather than traditional markets, contributing to a specialist market boom.

According to a recent survey of the sector by the National Association of British Market Authorities (NABMA), new trends in the most successful product lines – hot and cold food and drink, baked goods, handmade crafts, fruit and vegetables and mobile phone accessories – have fuelled this growth.

Festivals and shows, which are popular with a younger demographic, are increasing in both size and frequency across the UK. Many of these events also take place out of the traditional season.

Such new trends do not come without their challenges, however, as NABMA’s survey also highlighted. Traders reported escalating pitch fees, poor pitch locations and never-ending paperwork. But despite these drawbacks, traders have reported huge returns at such events, where they can turn over tens of thousands of pounds.

Both NABMA and the National Market Traders Federation (NMTF) agree that the sector needs to embrace these new trends and act to engage this new generation of entrepreneurs.

Youth markets

Indeed, national initiatives in support of youth markets have emerged in recent years to do just that.

This September will see the fifth National Youth Market take place in Manchester, an annual event run by the NMTF in partnership with Manchester Markets. Young people between the age of 16 and 30 from all over the UK trade at this event, showcasing their entrepreneurial talent.

The NMTF also supports traditional market organisers to run specialist markets aimed specifically at young people. Many towns and cities from across the UK have launched their own youth markets, such as those in Manchester and Cambridge, with over 100 such events taking place every year.

Also in its fifth year, is The Teenage Marketa fast-growing national initiative that’s transforming town and city centres with the creativity of young people”. This initiative provides a free platform for young people to trade at specially organised events. In addition to the retail offer, it also provides a platform for young performers to showcase their talents

Created by two teenage brothers from Stockport to support their town’s large population of young people, The Teenage Market initiative has quickly expanded across the country with thousands of young people taking part in events. Following the success of the first event, it was quickly recognised that the initiative could play an important role in the town’s regeneration strategy; a role which was highlighted by Mary Portas in her 2011 review of high streets.

Revitalising town centres

According to Portas, “Markets are a fantastic way to bring a town to life… I believe markets can serve as fundamental traffic drivers back to our high streets.” And one of her recommendations was to build upon current successful initiatives “to help attract young entrepreneurs to markets and really start building the innovative markets of the future.”

Indeed, the positive benefits for the towns and cities running The Teenage Market events include a rise in footfall, an increase in spend in the local area and a rise in the number of visitors to their local market.

Not only this, but the fusion of retail and live performances has succeeded in attracting a new generation of shoppers and visitors to local markets, helping to breathe new life into town and city centres.

Final thoughts

In an era of online shopping and declining high streets, the fact that local markets led by a new generation of traders are flourishing can only be a good thing.

And with an ageing population of traders, it is arguably now more important than ever to encourage young traders in order to secure the future prosperity of the markets industry.


If you enjoyed this blog post, you may also like our previous post on street markets.

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Supporting markets to survive and thrive

For around a thousand years, the London Borough Market has existed in one form or another.  It has survived fire, flood, plague and war – and on the 3rd of June this year, a terrorist attack.  The market has since reopened, with traders determined to continue their work and serve the local community.

Although many markets are a historic part of their host towns and cities, they are far from being relics.  Indeed, in recent years markets have experienced something of a revival.  In London alone, since 2010, the number of street markets has grown from 162 to over 250.

There are clear reasons for this – markets offer consumers and traders a number of benefits, and they make significant contributions to the economic, social and political health of towns and cities.

Economic impact of markets

Indeed, in 2015, the Institute of Place Management (IPM) conducted a comprehensive review of the impact of markets and found that markets not only have a significant turnover, they also impact indirectly on the wider economy – meaning that the £3.5 billion turnover directly attributable to retail markets is actually worth around £10.5 billion to the UK economy.

The Portas review in 2011 hailed markets as a potential saviour of the high street.  Indeed, the IPM review supports this, reporting that markets can help to increase town centre footfall by up to 25%.  This has significant economic potential.  In London, market visitors spend around £752 million per annum in nearby shop-based retailers.

Markets were also found to:

  • act as a significant employer, both nationally and at the local level
  • support intergenerational economic mobility (through family-owned businesses)
  • support the development of entrepreneurial skills in young people through ‘youth markets’
  • act as business incubators and support business formation due to their low barriers to entry, for example, enabling migrants to set up their own businesses
  • enable small businesses to reach larger businesses whom they can supply, and support other local businesses, such as farmers.
  • encourage high street diversity and create a distinct ‘identity’ for high streets
  • promote high street resilience, as they are flexible and able to respond quickly to changing demands.
  • help to utilise vacant and underused spaces within high streets
  • attract tourists, who are drawn to them because they are “unique, quirky, unusual”

Wider benefits

Markets also have a number of social purposes.  They are important places of social interaction, which facilitate community cohesion and social inclusion.  Markets can also help to improve public health and quality of life through the provision of fresh, quality produce at lower price points, which may be particularly beneficial for low-income families.

From an environmental perspective, there are also a number of benefits arising from the sale and purchase of locally produced products, including reducing pollution associated with high ‘food miles’ and reducing the need for consumers to travel to out-of-town sites, such as large retail parks, in order to make their purchases.

Challenges

Although there is overwhelming evidence that almost every street, food and farmer’s market is an invaluable asset to its local community, markets still face a number of very real threats.  These include:

  • the rise of out-of-town shopping centres, the dominance of big supermarkets, and the popularity of online shopping
  • planning and regulatory regimes that do not allow for, or restrict, the expansion or establishment of markets
  • a lack of support for markets or poor management by local authorities
  • high land values making it difficult for markets to be established

As many markets are a lifeline for areas experiencing deprivation, it is important that they receive the support that they require to survive and flourish.

Promoting and supporting markets

So, what can be done to support markets?  Earlier this year, the Mayor of London, Sadiq Khan, announced plans to establish the London Markets Board – a team of experts tasked with delivering a London markets strategy, and work to preserve and promote London’s increasing number of markets.

On a wider scale, NABMA (National Association of British Market Authorities) and the National Market Traders Federation recently published a ‘five-year manifesto’, which made a number of recommendations for ways to support markets.

A key recommendation is that local authorities work to raise the profile of markets.  There are many market-focused national initiatives such as Love Your Local Market, the National Youth Market, and the Great British Market Awards, which local authorities can become involved in.

The Love Your Local Market campaign, for example, is an annual event, established in 2012, which brings together markets across the UK.  It aims to build affection and support for markets in local communities, and offers free or subsidised pitches to start-ups to test trading conditions.  In 2013, it increased footfall in participating town centres by 10%.

Other recommendations to support markets include:

  • greater recognition of the role of markets in local economies, jobs and growth, as well as in civic local society
  • ensuring that retail markets have a voice in policy making that affects them, including planning and town centre management
  • further lifting the current burden of business rates for SMEs
  • supporting greater awareness of the sector’s employment opportunities including apprenticeships, platforms for self-employment and training hubs
  • developing and supporting sector-led initiatives that aim to support entrepreneurship and increase the amount of businesses on markets, and support them digitally
  • encouraging schools and further education establishments to work with market operators to enable people entering the labour market to embrace markets as a possible career

There are some promising signs.  Around £90 million has been invested into improving markets since 2014, and an increasing number of local authorities are making them central to town centre plans and regeneration activity.

By promoting and supporting markets in this way, the economic, social and environmental benefits can be maximised. As the 2015 review of markets underlines: “markets are an important asset to a location, and their future cannot be left to chance.”

Technical education – reformed for whose benefit?

by Stacey Dingwall

The expansion of grammar schools may not have made it into this year’s delayed and reduced Queen’s Speech but another education policy did – the government’s planned ‘major’ reform of technical education.

As Her Majesty set out, the government’s plan is to ensure that people “have the skills they need” for high-skilled, well-paid jobs, facilitated through “a major reform of technical education”.

A reformed system

The Chancellor detailed plans for a new ‘T levels’ system in March’s Budget, which is being created with the aim of equalising technical and higher education in order to improve the country’s productivity levels. The Budget announcement promised an increase of 50% in the number of hours students train, as well as £500m of funding per year to deliver the new system. The reforms will also simplify the system, reducing the currently available 13,000 qualifications to a mere 15.

The Budget announcement followed the April 2016 publication of the findings from Lord Sainsbury’s review of technical education. The review found “serious” problems with the existing system, noting that British productivity levels lag behind countries including Germany and France by up to 36 percentage points. It also highlighted that the country is forecast to fall to 28th out of 33 OECD countries in terms of developing intermediate skills by 2020.

The Sainsbury Review made a series of recommendations, including the introduction of a framework of 15 qualifications, which the government accepted in full (where possible within existing budget commitments) in its July 2016 Post-16 skills plan. The plan details how the government plans to deliver its reformed technical education system, by working closely with employers and providers, and ensuring that the system is an inclusive one, accessible no matter someone’s social background, disability, race or sexual identity.

Investing and cutting

Also included in the planned reforms is the construction of new ‘Institutes of Technology’, which are intended to “enable more young people to take advanced technical qualifications and become key institutions for the development of the skills required by local, national and regional industry”. At a time when schools and colleges are facing continued cuts and pressures on resources, this is one part of the reformed system that’s come in for criticism.

Speaking to The Guardian, Marcus Fagent from design and consultancy firm Arcadis stated that capital investment is essential to the new technical education system, in terms of space to teach the new curriculum. He also highlighted how addressing the issue of space for teaching has enabled countries like the Netherlands to deliver successful technical education provision.

The fact that our continental neighbours do it better with regards to technical and vocational education is something that keeps coming up. Even the new system has come in for criticism for its continued focus on leaving it so ‘late’ to try and promote technical education as a potential path for pupils. While Britain sticks with starting at 16, countries like Germany offer vocational routes to pupils from as young as 10.

Decentralisation and young people

This week, the Local Government Association will publish a new report that argues that previous reforms within the skills system have failed due to a lack of progress in the devolution of powers to the local level. Written by the Learning and Work Institute, the report will also recommend the creation of “one-stop” services covering apprenticeships, technical education reform, local adult skills planning, the successor to the European Social Fund and oversight of employment services.

In amongst all the arguments over reforms and provision, it’s telling and worrying that the voice of those who will be most affected by the new system is rarely heard – that of the young people trying to navigate a complex and ever-changing education system. With more reforms to GCSE grading also announced in the last week, they have every right to be anxious about navigating an education system that’s supposed to support them to deliver the productivity gains the country needs.

Follow us on Twitter to see what developments in public and social policy are interesting our research team. If you found this article interesting, you may also like to read our other education articles. 

Working longer – the reality ‘behind the headlines’

Senior businessman in office working on laptop

By Heather Cameron

With no shortage of headlines highlighting the record employment rate in the UK, and the increasing number of older workers widely reported, it may seem that the outlook for the ageing workforce is a rosy one. But do these headlines hide the reality?

Recent analysis from Age UK argues that the headline employment rate doesn’t tell the whole story about working longer, “making it an insufficient – and even misleading – tool for public policy decision-making”.

The statistics

The most recent official figures show that the employment rate (the proportion of people aged from 16 to 64 who are in work) is the joint highest since comparable records began in 1971, at 74.8%, while the unemployment rate is the joint lowest since 1975.

Data also shows that the employment rate for people aged 65 and over has indeed increased since the 2008 recession. It is currently at 10.4%, up from 7.3% in 2008.

Age UK has also recognised the increase in employment rates for older people, noting that, in fact, the older the age group, the greater the increase in employment. However, the average number of hours worked has declined since the recession, indicating a more complex and perhaps less reassuring situation than the one portrayed in the media.

The biggest drop was for 50-54 year old men, whose average hours declined by 29%. For men aged 60-64, the average number of hours declined by 8 hours (over 22%), while women aged 50-54 experienced a fall of 18%.

The only age group not to see a decline was women aged 60-64, which is likely to be as a result of the raising of the State Pension age.

Choice or necessity?

The change in the State Pension age was justified on the grounds that it gave people more choice and more scope to continue working if they wished to.

A recent CIPD survey found that the most common reason for wanting to work past 65 is that employees believe it will help keep them mentally fit, followed by wanting to be able to earn a sufficient income to continue to do the things they enjoy.

As Age UK suggests, it may be that the reduction in working hours is a good sign if it is due to older workers choosing to wind down their hours, maybe to enable them to juggle other responsibilities such as caring for their grandchildren, while still earning a wage.

However, the research suggests it may be less through choice and more as a result of the changing labour market such as increasing underemployment (working less hours than they would choose to) or increasing insecure working practices driven by the rise in self-employment and the ‘gig economy’.

As it is likely working fewer hours will mean less income, this could be a cause for concern since it will be more difficult for older workers to maintain their standard of living until they meet the State Pension age and for them to save enough for retirement.

Another issue highlighted by the CIPD, is that most employees don’t believe their organisations are prepared to meet the needs of the over 65s, suggesting that there is a need for employers to also review their practices in terms of managing older workers.

Final thoughts

It is clear that while, for some, choosing to work beyond the traditional retirement age will be a lifestyle choice, for many it will be a necessity. Any substantial reduction in working hours for these older workers could consequently pose a real issue.

It would therefore make sense for policy makers to heed the warning from Age UK not to rely on the headline rate of employment for older workers, and rather look beyond it to the reality of many struggling to get and keep the secure, well paid jobs they want and need.


If you enjoyed reading this, you may be interested in reading our previous post on the pros and cons of the gig economy.

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Scotland’s space sector: a launchpad for economic growth

Discovery space shuttle on launchpad

By Steven McGinty

In March, the UK Space Agency announced it had awarded £50,000 to the University of Strathclyde’s Scottish Centre for Satellite Applications (SoXSA) for its work with Glasgow City Council to attract entrepreneurs and start-ups to Glasgow’s innovation hub, Tontine.

Six companies will benefit from the support, which includes space industry specific business support, dedicated workshops and expertise, and administration and accommodation costs for two years.

The award is another sign of faith in Scotland’s burgeoning space industry, which has seen it become a global leader in the ‘New Space’ economy.

The development of New Space

The space industry, like many other technology fields, has been traditionally dominated by nation states, often in terms of national security.

But now, a new space industry is emerging, where private companies and entrepreneurs are developing innovative products and services in or for space. Reasons for this include reductions in funding to national space agencies, such as Donald Trump’s recent cuts to NASA, as well as the private sector’s success in innovation. For example, the company Space X has managed to launch rockets that had previously been into space – a practice which has been estimated to reduce the first stage of space flight from $60 million to $500,000.

Scotland’s role

Within a few miles of Glasgow’s city centre, a small number of research groups and private companies have gained international reputations for their work on space technologies.

For instance, Glasgow – a city more known for its heavy industries and shipbuilding – has found a niche in manufacturing low cost nanosatellites. This has led to Glasgow being crowned ‘Europe’s Satellite City’.

Glasgow’s first satellite company, Clydespace, has been tremendously successful over the past decade by developing CubeSats (a satellite the size of a wine bottle). These have been used in a range of missions, including UKube-1, the first mission to be commissioned by the UK Space Agency as a demonstrator for space technologies.

The city has also seen investment from Spire Global – a satellite powered data company headquartered in San Francisco. Spire’s satellites, which are used to gather data on weather, maritime, and aviation, were built by Clydespace. Peter Platzer, CEO of Spire, explains that:

We have up there about 20 satellites, all exclusively built here in Glasgow.”

Mr Platzer highlights that Scotland’s confidence in Spire was one of the reasons that they opened their European office in Glasgow’s Skypark. The company received a £1.5m Scottish government grant through the agency Scottish Development International (SDI).

Scotland’s low cost base and universities with strong interests in engineering and space technologies were also highlighted as key selling points.

Young innovators have also sought to get involved in Scotland’s space sector. For example, Tom Walkinshaw, founded Alba Orbital from his bedroom when he was unable to secure a job in the space industry. His company provides PocketQube satellites (based on a design of one or more 5cm cubes) and now employs 10 skilled employees. Alba Orbital’s first satellite, Unicorn-1, is backed by the European Space Agency and is due for launch later in the year.

In academia, the University of Glasgow’s LISA Pathfinder team won the 2016 Sir Arthur Clarke Award for “Space Achievement in Academic Research or Study”. The award was given for the team’s work on developing the Optical Bench Interferometer (OBI) for the European Space Agency’s LISA Pathfinder spacecraft – a demonstrator aimed at measuring gravitational waves in space.

The future of Scotland’s space economy

A report by London Economics investigated the potential benefits of a spaceport in Scotland.

Prestwick Airport in South Ayrshire and Machrihanish, near Campbeltown, are currently competing to win a licence from the UK Government.

London Economics have set out three main advantages to having a local spaceport:

  • Spaceport operations – The activities associated with a spaceport will lead to the direct creation of jobs in commercial spaceflight or providing satellite launches, as well as indirect benefits for local suppliers.
  • Space tourism – Tourists visiting space stations or taken part in space travel are also likely to spend money in the surrounding areas and on other attractions.
  • Space-related education – Spending will increase on research and development due to the creation of a spaceport.

Tom Millar, managing director of DiscoverSpace UK, has also stated that sending small satellites into space would be a ‘viable revenue stream’. A local spaceport would reduce the costs for Scottish satellite companies as at the moment they currently have to ‘piggyback’ onto launches with larger satellites.

The report concludes by finding that a spaceport in Scotland would increase growth from 9% to 10% of the UK’s space economy in 2030.

The implications of Brexit

The results of the 2016 EU Referendum has caused uncertainty for the Scottish space sector. For example, many companies will be concerned for the rights of EU national employees, as well as their ability to recruit from this workforce in the future.

The Financial Times has also reported that changes in terms could keep UK companies out of lucrative European space contracts, such as the €10bn Galileo satellite navigation system. The European Commission are looking to change the terms of the Galileo project so that contracts can be cancelled if a company is not based in a member state. They also require companies to pay the costs of finding a replacement. If these terms are approved, it would effectively rule out UK-based companies bidding for EU projects, which would have a negative impact on the sector’s growth.

Final thoughts

Scotland’s space sector is estimated to be worth £134 million and accounts for 18% of all UK space industry jobs. Its success has been built on a combination of government support, talented entrepreneurs, and a supply of skilled engineers.

As the industry continues to grow, there will still be an important role for government, particularly in supporting innovation centres and granting licences for UK spaceports. The promotion of STEM (science, technology, engineering and maths) subjects will also be crucial, as we look to develop a new generation of space entrepreneurs to keep us ahead of this new industrial space race.


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If you found this article interesting, you may also like to read some of our other articles:

Graduate ‘brain drain’ – is regional economic growth the solution?

college graduates groupBy Heather Cameron

With the economic performance of cities and regions increasingly reliant on the skills of their workforce, the longstanding issue of graduate ‘brain drain’ to London and the south is something that needs to be addressed.

Although students attend many of the universities spread across the country, a significant number of graduates flock towards the capital at the end of their studies. According to a recent report from Centre for Cities, this deprives other cities of skilled workers and essentially damages the overall economy.

The evidence

A quarter of all new graduates in 2014 and 2015 were found to have moved to work in London within the six months of finishing their degree. And the highest achievers make up a significant proportion. While London accounts for around 19% of all jobs, of the graduates that moved city six months after graduation London employed 22% of all working new graduates, and 38% of those with a first or upper second class degree from a Russell Group university.

Although most cities experience an overall graduate gain, cities outside London don’t retain the majority of students that move to their city to study – the ‘bouncers’ that drive the brain drain overall, overshadowing any gain:

  • Manchester lost 67% of these students upon graduation;
  • Birmingham lost 76%; and
  • Southampton lost 86%.

Other figures show that 310,000 graduates have left the north in the past decade, contributing to a net average deficit of 7,500 highly qualified workers leaving annually, or 75,500 over a decade.

Northern regions have to some extent offset the effect of local brain drain by attracting enough highly qualified foreign workers to fill the gap. But with reductions in immigration, these regions could be left lacking.

Given the UK’s current position regarding the EU, concerns have also been raised over whether Britain faces a further brain drain of academics to Europe, following Brexit. A recent survey highlighted that 42% of academics said they are more likely to consider leaving Britain after the vote to leave.

Why?

While it may seem plausible to assume that higher salaries are the reason for this brain drain, it appears that the main pull for graduates is the availability of jobs and career progression, which London’s vast labour market offers.

However, as recent research from Homes for the North has identified, these are not the only reasons. It highlights the importance of additional non-work drivers of graduate location decisions, including the cost and quality of housing, quality of local amenities and the prospect of home ownership.

Of the graduates polled, 80% said the quality of housing was important, while more than 60% said the cost of housing was important. The quality of green spaces and local amenities was also deemed important by over 60% of graduates.

What can be done to redress the balance?

There have been numerous graduate retention initiatives at the local and regional level aimed at tackling the uneven distribution of graduates, such as graduate wage subsidies and local graduate job matching.  But it seems little has improved. The Centre for Cities research argues that these alone will not tackle the root cause of the graduate brain drain.

It suggests that cities themselves have a vital role to play in ensuring the local job market offers an appropriate number of graduate job opportunities that will allow them to both retain graduates and attract graduates from elsewhere. Policy should therefore broaden its focus to improve local economies by investing in transport, housing and enterprise, rather than focusing solely on graduate retention and attraction policies.

The chief executive of the Centre for Cities commented that the government’s new economic and industrial strategy should be used to strengthen existing devolution deals for city-regions such as Greater Manchester, extending their scope to grow.

Indeed, the industrial strategy green paper, published in January, clearly places emphasis on addressing the economic imbalances across the UK through a number of measures, such as working with local areas to close the skills gap, including new schemes to support the retention and attraction of graduates. However, the strategy has been criticised for providing little clarity on how regional rebalancing and sectoral deals will work in practice.

Final thoughts

While it appears clear that cities outside London need to improve their graduate offer with better job prospects, the evidence on graduate migration suggests it is more complex than this.

As has been argued, the provision of good quality affordable housing could play a role alongside high-skilled job creation and opportunities. With the cost of living in London so expensive, this would make sense, particularly as the average graduate salary in London is not that much higher than the average across other UK cities.


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#BeBoldForChange and the changing world of work: International Women’s day 2017

As women across the world mark the 106th International Women’s Day (IWD17) they are being encouraged to think about their place in the “changing world of work.” Perhaps by coincidence, only a few days earlier toy giant Lego announced plans for it’s latest toy set based on “real life female scientists, engineers and astronauts”. The design was the winner of the latest “Lego ideas” competition and will feature prominent female scientists including Katherine Johnson, a mathematician and space scientist who worked with NASA and was recently featured in the Oscar nominated film Hidden Figures.

Despite attempts to raise the profiles of successful and prominent women in employment, research consistently highlights the persistence of the gender pay gap, albeit more prominent in some professions than others. The “motherhood penalty” still stagnates, or even cripples the careers of many women, and women are still not present in equal numbers in business or politics. Figures show that globally, women’s education, health and violence towards women is still worse than that of men, and that these factors affect their ability to participate fully in employment.

The scale of gender inequalities

A report published by the charity Engender ahead of IWD17 found that of the 3029 top leadership positions across business, politics, public sector, media, culture and sport in Scotland, only 27% of positions are held by women. The report found that, although women make up 52% of the population, they represent only:

  • 35% of Members of the Scottish Parliament
  • 7% of senior police officers
  • 20% of museum and gallery directors
  • 25% of local councillors
  • 16% of local authority leaders
  • 28% of public body chief executives
  • 26% of university principals

Previous research by Engender also found that women still do the majority of “invisible” work including housework, raising children and caring for vulnerable relatives. According to the 2011 census data, 62% of unpaid carers are women and the UK household satellite accounts found that the value of informal childcare in 2010 was £343 billion – equivalent to 23% of GDP. A report published by the Fawcett Society highlighted that inequalities also exists between women. The report found that the gender pay gap was even more exaggerated in black and ethnic minority (BAME) women than in other groups.

Women in Employment

The most recent employment figures for the UK showed that unemployment stood at 4.8%, the lowest level since 2005, and the proportion of women in work reached a record high of 70%. The latest PwC Women in Work Index measures levels of female economic empowerment across 33 OECD countries, based on five indicators. It reported that the UK had rapidly improved since 2000. However it also said that at the current rate of progress it will still take until 2041 to close the gender pay gap in the UK.

In short the picture is improving, but what exactly is being done to help women enter and remain in employment?

Supporting women into work

Supporting women into work was highlighted as a key policy objective for both the coalition and Conservative governments. A number of strategies have been considered to help different groups of women into employment:

  • Supporting women from disadvantaged backgrounds into employment – this includes women who have little to no formal education, victims of domestic violence, disabled women, and female offenders.
  • Supporting young women into traditionally “non female” roles – this includes encouraging young women and girls to take subjects at school and continue these onto university. It also means making apprenticeships open and inclusive, and marketable to everyone.
  • Supporting women to start up their own businesses – recent research highlighted that the annual revenue of women-led companies in the UK is growing at 28 per cent with an average turnover of £3.7 million. Potential support includes making women aware of specific funding they are entitled to, and helping them with the initial start up process. We’ve blogged before about female entrepreneurs if you want to know more.
  • Incentives and increased flexibility for women with children – For many women, the cost of childcare for young children means that working does not make financial sense for them. Employers have been taking steps to make working hours and conditions more flexible, some even providing crèche facilities or credits for childcare to staff to ease the pressure of childcare on working families. Changes to maternity and paternity leave also allow fathers to take a greater caring responsibility for new babies, and can help make the transition back to work easier for some families.
  • Supporting older women – this group has been identified as having been somewhat neglected by back-to- or entry-to-work schemes. Age related conditions, increasing caring responsibilities for elderly parents or grandchildren, and decisions to retrain or change careers can all impact significantly on the professional careers of older women.
  • Supporting women to progress – Women typically still make up the majority of the low-skilled, low pay work force, with many working part time in order to meet childcare needs. However, research has shown that this impacts significant on their ability to progress. While progression is an issue across the board for women in employment, it is particularly noticeable for this group. Research from NPI showed that there were around 5.1 million low paid employees in 2015. 62%, or 3.2 million of them were women and options for progression were significantly lower than for men, which keeps many women in a cycle of low-skilled, low paid, often insecure work.

Supporting women back to work

Many women take career breaks during their professional lives, most commonly to start or look after family. However, when they decide to return they face a number of barriers. These barriers mean that many returners end up in lower skilled jobs, either because their old job does not accommodate new flexible working needs or because extended time away from work is associated with a loss of skill. The UK government have launched a number of strategies and consultations aimed at encouraging and supporting women back to work after a career break. Individual organisations have also developed their own schemes, including the Back to Business scheme developed by PwC and Relaunch your career from MasterCard.

Many schemes include coaching and mentoring, phased returns to work, flexible working options and job shares, where appropriate. Increasingly, organisations now offer childcare options. Employers are also now allowing more staff to work from home, with the increased use of videoconferencing and online document sharing.

Earlier this week, Vodafone announced that it is launching the one of the world’s largest supported return to work programmes, ReConnect to recruit women who have taken a career break, as well as committing to increasing the proportion of women in management and leadership roles.

Final thoughts

Fully unlocking women’s economic empowerment – one of the cornerstones of true gender equality – is reliant upon unlocking the full potential of women in the workplace. As people across the world celebrate the economic, social and political achievements of women, as well as a growing awareness of their collective power to agitate for change, International Women’s Day also provides the opportunity to reflect on the position of women within society, and the steps that can be taken to improve this in the future.

#BeBoldForChange is the official hashtag for this years #IWD17 celebrations. You can submit your #BeBoldForChange action via the IWD website.

Follow us on Twitter to see what developments in public and social policy are interesting our research team. If you found this article interesting, you may also like to read our other articles on women in employment and women in technology.

Back to the classroom – teacher training and recruitment

Adult Ed - Study Partners

by Stacey Dingwall

Earlier this week, the House of Commons Education Select Committee published a report on the recruitment and retention of teachers in England. Announced in October 2015, the Committee took evidence on whether there was a ‘crisis’ in teacher recruitment, including by region and subject; what the “root causes” of the present situation with regards to teacher recruitment were; and what action the government should take to address issues with teacher recruitment.

“Significant shortages”

The Committee’s report suggests that at present, the government is failing to take “adequate” action to tackle what it describes as “significant” teacher shortages in England. It is noted that the targets for initial teacher training (ITT) courses have been missed for the last five years and that Geography, Biology and History were the only subjects in which the targets for new entrants to postgraduate and undergraduate ITT courses were exceeded. Targets for all other secondary level subjects were missed, with only 68% of Computing ITT places filled, and only 41% of Design and Technology places.

While the report acknowledges the importance of recruiting new teachers to the profession, it also emphasises the importance of retaining the teachers that it already has. Government data shows that more than 10% of teachers leave the profession after a year, and 30% leave within five years. Giving evidence to the enquiry, the National Audit Office (NAO) suggested that the number of teachers leaving rose by 11% between 2011 and 2014.

“Unmanageable” workloads

The Education Committee identified workload as a key driver for those teachers who choose to leave the profession. Last year, 82% of the 4,000 respondents to a Guardian survey described their workload as “unmanageable”. Analysis published by the Education Policy Institute (EPI) in October found that teachers in England work longer hours than their peers in 35 other developed countries, working an average of 48.2 hours per week.

When Nicky Morgan was Education Secretary, three review groups were set up to provide recommendations around the three biggest areas identified by teachers as those that add to their workload unnecessarily: marking, planning and data management. The groups’ recommendations have yet to be progressed following their publication in March 2016 (and Morgan’s replacement).

In Scotland, Education Secretary John Swinney announced his intention to “declutter” the Scottish education system at last year’s Scottish Learning Festival, by reducing teachers’ workload around assessments. In response, teaching union EIS suspended their programme of industrial action over teacher workload in relation to examinations.

Teaching as a second career

Swinney also announced plans to develop new routes into teaching, using funding from the Scottish Government’s Attainment Scotland Fund. These plans were followed by the launch of the ‘Teaching Makes People’ campaign at the start of the month, which is targeted at recruiting more teachers in the STEM subjects.

As well as undergraduates, the campaign is also aiming to attract people from the STEM industries into the profession. In particular, the Scottish Government hopes that it will convince former oil and gas industry workers to retrain as teachers.

The National College for Teaching and Leadership (NCTL) reported in January that more than 6,200 people aged 30 and over started ITT in 2016-17, the highest number since 2012-13.  Entering teaching as a second career has become more common in recent years. In November, Financial Times associate editor and columnist Lucy Kellaway announced that she was leaving her role to become a maths teacher after 31 years in her role.

At the same time, Kellaway set up Now Teach, a charity which works to encourage senior professionals in the business industry to retrain as teachers. Aside from helping with the issue of teacher recruitment, headteachers have also welcomed the benefits of having former professionals in the classroom in terms of their leadership skills and ability to provide careers advice.

Follow us on Twitter to see what developments in public and social policy are interesting our research team. If you found this article interesting, you may also like to read our other articles on careers guidance.

Is the record high employment rate masking the reality of in-work poverty?

wage-packetBy Heather Cameron

The employment rate may have hit a record high of 74.6%, with unemployment continuing to run at an 11-year low, but in-work poverty has also reached unprecedented levels.

More than half (55%) of people in poverty are living in working households, including millions of children, according to the latest Monitoring poverty and social exclusion (MPSE) report.

And new research for the Joseph Rowntree Foundation (JRF) published last week says four million more people are living below an adequate standard of living and ‘just managing’ at best.

Statistics

The findings of MPSE paint a bleak picture for a substantial share of the UK population. It notes that the proportion of the UK population living in poverty has barely changed since 2002/03, remaining at around 21%. And at 55%, those in poverty in working households has reached its highest level since the data set began in 1994/95.

Of this 55%, four fifths of the adults in these families are themselves working – a total of 3.8 million workers were living in poverty in 2014/15, an increase of around a million since 2004/05.

Female employees make up the single largest group within this group at 1.5 million, followed by male employees at 1.4 million. However, the majority of workers in in-work poverty are male (53%) as there were 620,000 male self-employed workers in poverty in 2014/15, while there were 250,000 female self-employed workers.

The story is different for workless households, however, as the proportion of people in poverty in these households has decreased, with the number in workless or retired families having fallen by half a million. Despite the significant increase in the number of people aged 65 and over, the figures show there are 400,000 fewer pensioners in poverty. There have also been reductions in the number of children in workless households.

While this is clearly encouraging, as the MPSE report suggests, it is difficult to categorise this as progress since there has been little change in the relative poverty measure overall.

Moreover, the new research from JRF warns that millions of just managing families are on the tipping point of falling into poverty as 30% of the population are living below the minimum income standard (MIS). In addition, 11 million people were found to be living far short of MIS, up from 9.1 million, who have incomes below 75% of the standard.

So what is causing these worrying statistics?

Contributory factors

The labour market has undoubtedly had some influence on these figures, with low wages and insecurity. Although average incomes have begun to rise, they are still below their peak. Male weekly earnings are still lower than 2005 levels and female weekly earnings, although now equal to 2005 levels, are still below what they were in 2010.  And with inflation expected to return, it has been suggested that hourly pay is unlikely to reach its pre-recession peak before 2020.

However, this is only part of the issue. There are also a number of other contributory factors, including:

  • increasing cost of living;
  • housing market failures; and
  • cuts in welfare benefits.

The increase in numbers living below an adequate standard of living has been driven by rising living costs while incomes stagnate. The price of a minimum ‘basket of goods’ has risen 27-30% since 2008, and average earnings by only half of this. The JRF analysis suggests the cost of living could be 10% higher by 2020, a period when much state support has been frozen.

Housing is also an important factor. It is often too expensive and of poor quality, particularly in the private rented sector. The MPSE findings show that the number of private renters in poverty has doubled over the last decade, with rent accounting for at least a third of income for more than 70% of private renters in poverty.

Households accepted as homeless and those in temporary accommodation have also increased and landlord evictions are close to a ten-year high.

Added to this, is the four-year freeze on benefits, tax credits and Universal Credit (UC), along with a reduction in the overall benefit cap. The benefit cap mainly affects households with children and will increase the number of families affected, from 20,000 to 112,000.

All this puts those on the lowest incomes at risk.

Way forward

Clearly, strong growth in the number of people in employment does not mean an end to employment-related disadvantage.

To help end poverty, the JRF has called on the government to make a number of changes, including:

  • reversing cuts to the amount people can earn before their benefits are reduced;
  • ending the freeze on working age benefits;
  • extending support to low wage sectors to reduce the productivity gap; and
  • investing in a living rents scheme to provide more affordable housing.

As the MPSE report concludes, “solutions for in-work poverty require more than just more work.”


If you enjoyed reading this, you may also like our previous articles on poverty.

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