Graduates key to government’s industrial strategy in West Midlands, new analysis shows
Official government forecasts show that between 2025 and 2035 the UK economy will need 1.7 million more workers in occupations associated with graduate skills
- Recent data has revealed that graduates across the West Midlands account for half of all workforce
- By 2035 the UK economy will require a workforce where 61% hold a higher education qualification compared to 52% in 2025 and 48% in 2020
One in every two workers in the West Midlands are university graduates according to new data, which reveals that graduates make up a significant proportion of the workforce across the country in key growth sectors highlighted in the government’s industrial strategy.
The analysis, which was conducted by Universities UK (UUK), shows the impact of graduates in the workforce across key growth sectors and the important role they play in driving national and regional growth.
Five of the vital growth sectors in the West Midlands have more than 45% graduates in their workforce, including
- Professional and Business services (73%)
- Creative Industries (64%)
- Energy industry (62%)
- Digital and Technologies (60%)
- Life sciences (59%)
Alongside infrastructure and investment, high level skills are key to driving productivity. Government research shows that increased HE participation has played a pivotal role in preventing a decline in productivity. The research revealed that people with postgraduate and first degrees made up 22% of the UK workforce between 2001 and 2007, increasing to almost 35% between 2014 and 2019.
....this latest analysis underlines the importance of developing highly skilled graduates who make such a difference to our communities.
Major employer in West Midlands
Universities nationwide are actively working with major employers in their regions to provide the workforce needed in key sectors which in turn helps to boost regional and national growth.
For example, analysis carried out by London Economics commissioned by the University of Birmingham found that the University supports nearly 20,000 FTE jobs in the UK, with more than 13,000 of those are in the West Midlands, with 1 in 50 jobs in Birmingham being directly provided by the University.
In teaching and education, the University of Birmingham’s contribution is worth £1.3 billion to the economy, and is involved in training more than 5,300 teachers, social workers, nurses, doctors and dentists each year.
Despite there being a good spread of graduates in the workforce across all regions, UUK’s analysis highlights a stark gap between London & the Southeast where the proportion of graduates in the workforce is by far the highest, compared to the rest of the UK.
With the government seeking to drive growth across all parts of the UK the data indicates that many regions could continue to lag behind if action is not taken. The data shows that the current gap in high level skills between London and the rest of the UK amounts to 4 million graduates.
In fact, government data shows that by 2035 the UK economy will require a workforce where 61% hold a higher education qualification compared to 52% in 2025 and 48% in 2020, further emphasising why widening access to higher-level skills will be key to supporting the workforce for the future should be a priority for the government.
Vivienne Stern MBE, Chief executive of Universities UK said:
“Our analysis shows just how important graduates are to economic growth. Regions where graduates make up the majority of the workforce report the highest levels of productivity while those with lower proportions risk getting left behind.
“High growth sectors identified as priorities by government are hungry for graduate talent. If we can’t supply this, then companies will be held back or may go elsewhere. We have to get serious about making sure the country has the high-level skills the economy needs to stay competitive. Those who say there are too many graduates are plain wrong.
“With universities in every part of the country, from Cornwall to the Highlands and Islands, a sustainably funded university sector can continue to widen access to these higher-level skills and support the workforce for our future economy.”
Professor Adam Tickell, Vice-Chancellor of the University of Birmingham said:
“The University of Birmingham makes a major contribution to our local economy – accounting for one in fifty of jobs in the city - and this latest analysis underlines the importance of developing highly skilled graduates who make such a difference to our communities. This contribution doesn’t only come from the over 5000 doctors, nurses, dentists, social workers and teachers that graduate from Birmingham every year, but in engineering, the life sciences, creative industries and across the economy and society of the West Midlands.”
At a national level, the Creative sector (75%), Professional and business services (73%), Digital sector (72%) and life science sector (70%) are particularly dependent on high levels of graduate skills.
Notes for editors
Notes for editors
- For media enquiries please contact Tim Mayo, Press Office, University of Birmingham, tel: +44 (0)7815 607 157.
- The University of Birmingham is ranked amongst the world’s top 100 institutions. Its work brings people from across the world to Birmingham, including researchers, educators and more than 40,000 students from over 150 countries.
- England’s first civic university, the University of Birmingham is proud to be rooted in of one of the most dynamic and diverse cities in the country. A member of the Russell Group and a founding member of the Universitas 21 global network of research universities, the University of Birmingham has been changing the way the world works for more than a century.