Contrary to popular belief, indicators suggest that there is a shortage of graduates in the UK, not too many. Technology is changing the way we work and the structure of the labour market which is resulting in an increased demand for graduate attributes. In light of these projections, the  decision to cut around 25,000 university places for next year could seriously hold back our capacity for economic growth.

The report draws on the large body of evidence on the shape of labour markets in developed economies. It demonstrates that if the UK is to remain globally competitive we need a greater proportion of graduates in our workforce. We also need to create genuine progression opportunities to drive social mobility and equip the population for the demands of an hourglass-shaped labour market.

You can read more about the impact on changes to the labour market in a blog by Libby Hackett, Director of University Alliance.

Read the report
Follow the debate on Twitter @UniAlliance | #needmoregrads

The right talent to build a stronger economy

Proposal one

Current economic indicators suggest that there is an undersupply of graduates in the UK labour market.  However, current Government policy has resulted in a reduction in university places for 2012-13 of around 25,000^[1]. We propose that Government should ask the Higher Education Funding Council for England (HEFCE) to monitor the four economic indicators identifying graduate saturation levels so that they can advise Government on the projected equilibrium point to ensure optimum student numbers are reached and maintained.  Universities need to work together with Government to find long-term sustainable solutions to increase public and private investment in order to deliver the number of graduates the future labour market will require^[2].

Proposal two

Government and universities need to work together to identify ways of providing essential financial support for those postgraduate students that are not supported by an employer. In the short-term, the Government should confirm that they will continue to support the provision of Professional and Career Development Loans (PCDLs) and take action to encourage more banks to offer PCDLs to increase provision and encourage more competitive loan terms.

Proposal three

We strongly support the Wilson Review proposal that HEFCE, should establish a mechanism whereby universities are incentivised to expand sandwich programmes through changes to the student number controls that it operates.  Alongside that, Government should support companies that host students on full sandwich placement years through a tax credit or grant mechanism.^[3]

Capitalising on the export potential of universities

Proposal four

We fully support the launch of HE Global as an online information and advice portal for HE institutions wishing to expand abroad, as announced in the Chancellor’s Autumn Statement.^[4]  We would also highlight the recently published Wilson Review recommendation in this area that UK Trade & Investment (UKTI) should reconsider the role of universities in providing critical intelligence, support and ambassadorial engagement with potential investors.^[5]

Alongside initiatives such as these it is vital that there is cross Government support for the international work of our universities and the significant number of jobs this creates.  In particular, we should be minded at all times to ensure that immigration policies do not unduly restrict growth in this area.

Making the UK the best place in the world for university-business collaboration

Proposal five

In keeping with the newly enhanced role for the Technology Strategy Board (TSB), we strongly support the Wilson review recommendation that the TSB should work with universities, research funders and business to establish a boundary-scanning capability with intelligent brokering to facilitate innovation.^[6]

Image courtesy of comedy_nose via Flickr

University Alliance response to the UCAS consultation on proposals to reform the university admissions process. We broadly support the changes proposed for 2014 and there is general recognition that there is value in pursuing reform of the admissions system. However, it is not clear that the proposal for 2016 provides the best solution to the underlying issues highlighted in the Admissions Process Review (APR).

Download the University Alliance response here.

We welcome the opportunity to respond to this consultation. At this critical juncture for the higher education sector, it is imperative that an appropriate regulatory framework follows the change in funding environment.

Throughout our response to this consultation, as well as our response to the White Paper, we attempt to comment constructively on proposals. However we are eager to ensure that as a new regulatory framework is developed, the Government keep in mind the features of higher education that make our sector world-leading. This period of change will cause inevitable disruption which we believe can be minimised through ongoing consultation with the sector.

Universities deliver many shared priorities with government. As one of the UK’s major export industries, universities have the capacity to leverage investment. Through playing an active leadership role in the regional economy they bring together key players in the partnerships that will help rebalance the economy. As part of a global knowledge network, universities generate, translate and disseminate research-led innovation. By exchanging knowledge with business and enterprise, universities also support its adoption and exploitation. Through widening participation and delivering access to the professions, they support social mobility. By engaging individuals in the pursuit of knowledge and understanding, they support civic engagement and a more tolerant and cohesive future society.

Recognition of this wider economic and social role is critical if we are to plan and provide for the higher education system we need. In this way we can successfully position the UK within a competitive, challenging and knowledge-based global economy.

University Alliance has submitted the following response to the Milburn review into Social Mobility and Child Poverty – download it here.

Download the University Alliance response here.

Download our response here.

Download the University Alliance response here.