New analysis shows that graduates will be key to 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. In fact, the average proportion of graduates in the workforce of the eight industrial strategy priority sectors is 64%. 

• Official government forecasts show that the UK workforce will need 11 million extra graduates by 2035​ 
• To achieve this the UK economy will require a workforce where 61% hold a higher education qualification compared to 52% in 2025 and 48% in 2020​ 
• New analysis shows the eight sectors identified in the industrial strategy as key to economic growth rely heavily on a graduate workforce  

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.    

• Life sciences (70%) 
• Creative Industries (75%)  
• Digital and Technologies (72%) 
• Energy industry (58%) 
• Professional and Business services (73%)  
• Financial services (61%) 
• Advance manufacturing (48%)  
• Defence (55%)  

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, The University of Derby launched the Nuclear Skills Academy with partners, Rolls Royce. The Academy aims to sustain nuclear capability within the UK’s submarines programme by creating a dedicated pipeline of talent at the start of their careers.   

The University of Liverpool is another institution working to provide high skilled graduates for the workforce through their collaboration with leading UK-based sports nutrition company, Protein Works. Through their employability partnership with the company, they have ensured graduates have the skills and experience required to thrive in the sector.  

Students from the University of Plymouth are benefitting from the partnership the institution has with Babcock, a leading provider of engineering services across a broad range of key sectors (marine, nuclear, land and aviation). Through an exclusive mentoring scheme with Babcock, students have the opportunity to gain relevant skills and experience from one-to-one mentoring sessions. The company also recently launched a skills academy which offers hands on training.  

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 making up the current gap in proportion of 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.