Graduates without work experience will be left out in the cold

Over one third of entry level jobs will go to graduates already involved with companies.

Many soon-to-be graduates will be left without a job due to lack of work experience, new research suggests. High Fliers’ The Graduate Market in 2013 report, released today, declares that of all entry level vacancies available for 2013, over a third will go to those who have already completed internships or work experience for the company.

The toughest fields to get into without having experience are banking and law, it has been revealed. This may well be, but what happens when these internships are so fiercely competitive that they are practically impossible to come across?

In the legal profession, university students have the option to apply to take part in a vacation scheme: a two or three week paid work experience that provides insight – and contacts – in a law firm. However, Jack Denton, co-founder of the research website AllAboutCareers.com, estimates that for approximately 3,150 places on the schemes nationwide, there are more than 12,000 applicants.

Three thousand schemes might seem like a generous amount, but when one considers that most students who secure one work placement also manage to achieve at least one more in another firm, these get swallowed up very quickly by a fairly select bunch.

As former Labour minster Alan Milburn pointed out in his 2009 report, Fair Access to the Professions, law is one of the “most socially exclusive” fields to work in, and firms’ “closed shop mentality” means that connections, and ‘who you know’, is often prioritised above talent. It is unfortunate that this attitude isn’t limited to the legal profession.

Managing director of High Fliers Research, Martin Birchall says:

“This latest research confirms that taking part in work placements or internships whilst at university is now just as important as getting a 2.1 or a first-class degree”.

So what other options are available to those who haven’t managed to secure this ever-important addition to their CV?

With most core Universities offering hundreds of societies which welcome the participation of anybody and everybody, there is no excuse for not getting involved. It is not, either, impossible to go one step further and assume a volunteer role in the committees of these societies. Invaluable budgeting experience could be gained in the role as treasurer, for example, organisational skills for social secretaries and management skills for presidents.

Students need to make the most of opportunities that are there for them,  before it is too late and all that can be done to beef up the CV is to work tirelessly for free in the hope that one pitiful employer might eventually hire you for, you know, real money.

Or, following Adam Pacitti’s recent example, entry level aspirators could make their own opportunities. This 24-year-old Portsmouth University graduate spent his last £500 on a Camden billboard begging employers to ‘Employ Adam’. Inspired, huh? He is looking for a job in the creative field of television production, so let’s hope someone takes a punt on him soon and ends the unemployed misery of at least one former student.

But it’s not all bad news for the next generation to leave university. The outlook is good for the 2013 graduate job market, with an expected increase of 2.7 per cent. Perhaps that will go some way to reduce the approximate 50 per cent of graduates from last year who are under- or unemployed.

Hold on to your hats - graduate employment is a bumpy ride. Photograph: Getty Images
Photo: Getty
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George Osborne's mistakes are coming back to haunt him

George Osborne's next budget may be a zombie one, warns Chris Leslie.

Spending Reviews are supposed to set a strategic, stable course for at least a three year period. But just three months since the Chancellor claimed he no longer needed to cut as far or as fast this Parliament, his over-optimistic reliance on bullish forecasts looks misplaced.

There is a real risk that the Budget on March 16 will be a ‘zombie’ Budget, with the spectre of cuts everyone thought had been avoided rearing their ugly head again, unwelcome for both the public and for the Chancellor’s own ambitions.

In November George Osborne relied heavily on a surprise £27billion windfall from statistical reclassifications and forecasting optimism to bury expected police cuts and politically disastrous cuts to tax credits. We were assured these issues had been laid to rest.

But the Chancellor’s swagger may have been premature. Those higher income tax receipts he was banking on? It turns out wage growth may not be so buoyant, according to last week’s Bank of England Inflation Report. The Institute for Fiscal Studies suggest the outlook for earnings growth will be revised down taking £5billion from revenues.

Improved capital gains tax receipts? Falling equity markets and sluggish housing sales may depress CGT and stamp duties. And the oil price shock could hit revenues from North Sea production.

Back in November, the OBR revised up revenues by an astonishing £50billion+ over this Parliament. This now looks a little over-optimistic.

But never let it be said that George Osborne misses an opportunity to scramble out of political danger. He immediately cashed in those higher projected receipts, but in doing so he’s landed himself with very little wriggle room for the forthcoming Budget.

Borrowing is just not falling as fast as forecast. The £78billion deficit should have been cut by £20billion by now but it’s down by just £11billion. So what? Well this is a Chancellor who has given a cast iron guarantee to deliver a surplus by 2019-20. So he cannot afford to turn a blind eye.

All this points towards a Chancellor forced to revisit cuts he thought he wouldn’t need to make. A zombie Budget where unpopular reductions to public services are still very much alive, even though they were supposed to be history. More aggressive cuts, stealthy tax rises, pension changes designed to benefit the Treasury more than the public – all of these are on the cards. 

Is this the Chancellor’s misfortune or was he chancing his luck? As the IFS pointed out at the time, there was only really a 50/50 chance these revenue windfalls were built on solid ground. With growth and productivity still lagging, gloomier market expectations, exports sluggish and both construction and manufacturing barely contributing to additional expansion, it looks as though the Chancellor was just too optimistic, or perhaps too desperate for a short-term political solution. It wouldn’t be the first time that George Osborne has prioritised his own political interests.

There’s no short cut here. Productivity-enhancing public services and infrastructure could and should have been front and centre in that Spending Review. Rebalancing the economy should also have been a feature of new policy in that Autumn Statement, but instead the Chancellor banked on forecast revisions and growth too reliant on the service sector alone. Infrastructure decisions are delayed for short-term politicking. Uncertainty about our EU membership holds back business investment. And while we ought to have a consensus about eradicating the deficit, the excessive rigidity of the Chancellor’s fiscal charter bears down on much-needed capital investment.

So for those who thought that extreme cuts to services, a harsh approach to in-work benefits or punitive tax rises might be a thing of the past, beware the Chancellor whose hubris may force him to revive them after all. 

Chris Leslie is chair of Labour's backbench Treasury committee.