Is the Degree Dead? 700,000 Graduates Out of Work and on the State

1. The Executive Summary (Professional & Balanced)

Headline: UK Graduate Welfare Claims Surge by 46% Since 2019

A new analysis by the Centre for Social Justice (CSJ) reveals that over 707,000 university graduates are currently out of work and claiming welfare benefits. This represents a significant 46% increase since the pre-pandemic era.

The report highlights a growing “health crisis” within the graduate workforce, with 240,000 individuals—a figure that has more than doubled since 2019—citing sickness as their primary reason for being unable to work. While the government maintains that graduate inactivity is at a record low, it has launched a £1.5bn investment plan and a “Jobs Guarantee” to address the barriers facing the younger generation.


2. The Analytical Breakdown (Focus on the “Skills Gap”)

Headline: Degrees vs. Vocational Training: The 700,000-Graduate Warning Sign

Is the UK’s “obsession” with university degrees backfiring? According to the CSJ, the answer may be yes. The think tank’s latest data paints a sobering picture of the graduate labor market:

  • The Benefit Count: 400,000 graduates are currently on Universal Credit.

  • The Age Factor: 110,000 of those claiming benefits are under the age of 30.

  • The Earnings Gap: Data suggests that Level 4 apprentices earn £5,000 more on average than university graduates five years after qualification.

Sir Iain Duncan Smith, founder of the CSJ, argues that the current system overlooks technical skills in favor of academic credentials that don’t always align with market needs. In response, the government has commissioned a review led by former Health Secretary Alan Milburn to investigate what is holding young people back.


3. The “Fast Facts” Version (Scannable & Direct)

Metric 2019 Figures 2024/25 Figures Trend
Graduates on Benefits ~484,000 707,000 ⬆️ 46%
Off Work due to Sickness 117,000 240,000 ⬆️ 105%
Under-30s on Benefits 110,000 New High

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