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If employment is the bedrock of the economy, then it follows that those who chart the vagaries of the job world play a pivotal role.

The Institute for Employment Studies does exactly that. It is an independent, apolitical, international centre of research and consultancy in human resource and job issues, and works with employers across all sectors as well as government agencies.

An associate director of the IES and director of research, Jim Hillage has over 25 years experience of labour market research, and has followed the many ebbs and flows of graduate recruitment.

‘In the last few years there’s been a combination of continuity and change,’ says Jim. ‘For example there’s been a great increase in the number of graduates and people going to university but we haven’t seen yet a decline in the fortunes of people when they enter the world of work.’

He adds: ‘It’s still worthwhile going to university – it still differentiates you in the labour market.’

The changing face of jobs
Jim says: ‘The available jobs are changing as a reflection of changes to the labour market as a whole - graduates are more likely to go into the service sector and into smaller firms. Also it’s a far bumpier entry into employment now than it used to be.

‘This is partly through younger graduates taking some time off between leaving their studies and going into the labour market, and partly because some people aren’t sure of what they want to do, so take a temporary job first.’

‘There are still perhaps shortages of people with good science and maths degrees but there’s not enough students coming through who can do those degrees. There’s a lack of interest in science and technology to an extent, but it also reflects the decline in manufacturing and a desire in young people to go into sectors where they can make money – like financial or business services – or something they have an innate interest in like media or arts.’

The financial factor - coping with debt
One big change Jim has seen is the increase in students taking work to help pay their way through university to avoid too much debt.

‘Most undergraduates now have part-time jobs or some sort of paid income during their term time or during vacations. I think there’s been a significant increase over the last few years.

‘Most of the debt when a student leaves now is student loans. But it’s a very soft loan – graduates don’t have to pay it back until they earn a certain amount and the interest rates are low. The argument is that students benefit from going, so should they not share some of the cost?’

The recent changes in tuition fees could affect the numbers going to university says Jim, though he doesn’t think the impact will be great.

‘There’s a range of support mechanisms for people who can’t afford to go to university. However, there’s a perception effect – the perceived cost may choke off those who are marginally interested – either because they have a problem affording to go, or those who are marginally interested motivation wise.

‘I’d be surprised if it had a major impact on the numbers going into higher education as a whole, though it may change the composition to some extent. People may defer entry for a bit – I don’t think the cost will put off older people.’

What employers want
While the Government is keen on increasing the numbers of those in higher education, there has been some criticism in recent years that many graduates lack basic skills.

Jim says: ‘Over the years there has been a problem with the perception of the output of the education system. I think that’s likely to be fixed over time with the concentration on literacy and numeracy that’s now embedded in the school system. There may be a problem, but I don’t think it’s a major problem.’

He adds: ‘The big issue for employers isn’t the basic skill level of graduates, it’s their work readiness and work attitude that are more a problem. A large number of employers express concerns about graduates’ work ethics and their ability to work in teams and to liaise with customers and so on.

‘From an individual student’s point of view, this is something where a period of work experience can help enormously. When graduates eventually go to the labour market they have a much better idea and have something to offer – they’re readily able to relate to a workplace, conduct themselves better in an interview and are more likely to get a job.

‘There are increasing numbers of graduates around, so the more work experience and commercial awareness you’ve got, the more you’ll distinguish yourself in any job application.’

Job market tactics
Students and graduates should give serious consideration to doing unpaid work experience as well says Jim, especially in the more competitive sectors.

‘With unpaid work experience, it gives you an understanding of the industry and gives you some skills. You start to understand the process of the business – you also develop your contacts and network. It’s also about resilience – how long you can do it for, both financially and psychologically.’

But Jim warns against relying for too long on the so-called ‘skipping stone’ method, whereby graduates take a lesser-paid job in the hope of moving on quickly.

He says: ‘A lot of graduates – either planned or inadvertently - take an initial job, a port in the storm, to get them into the labour market and then try to move on from there. But what we’ve found on our work on graduates is that some of them get stuck there and find themselves in a very dissatisfying position.

‘The thing that had distinguished them from others begins to wear off after a while – they’re associated with being in a dead-end boring job for five years. Employers think “they’ve not made much of themselves.”

‘There’s a bit of a risk attached to a stepping stones strategy – it’s much better than not doing anything, but you’ve got to move on. A stepping stone isn’t a permanent home.’

Value of a higher degree
A key way of distancing yourself from the competition is by doing a second higher degree like a masters or PhD, and Jim says this is becoming an increasingly popular option.

‘Either you come out of university with a very practical sense – with lots of work experience to hit the ground running – or you do the higher level route.

‘People with higher degrees are even more likely to get a job. But it’s important that you’ve got a plan and know where you’re going – you’ve got to talk to people in the industry to find out what works, and make friends with your careers advisors on campus.

‘They’ll help you work out whether a higher degree will make a difference – in a scientific career a PhD will make a big difference, but it probably won’t in financial services.’

Jim adds: ‘Different jobs need different entry strategies. Also, if you talk to someone in the industry, they may even sponsor you to do a second degree.’

Choosing the best job route
The world of employment is far more complex now, Jim warns, and getting the right job takes effort, diligence and even cunning.

‘The big graduate employers are taking a smaller proportion of the graduate output than they used to.
‘There are still national graduate employers, including all the public services like health and education, but there are also a wide range of graduates going into smaller employers or non-traditional graduate employers, or stepping-stone jobs.

‘There are a lot of very successful small companies which some graduates miss, or they pursue other entries such as work experience and higher education.’

Where you’re prepared to live and work will also have a large bearing on employment. ‘If you want the best jobs you’ve got to leave home,’ Jim says. ‘The bigger jobs are in London and the South East. Inclination to move declines with age – the older a graduate is, the less likely they are to want to move for work.

‘There’s a small group of hyper-mobile students who will move wherever they want to go – be it London or New York – but the vast numbers of students stay within their local area. That’s where the average sorts of jobs are.’

The golden formula for success
Recruiters are looking for a combination of factors in candidates and getting the mix right can see your job prospects soar, says Jim.

‘Firstly, it’s about maximising your talents, whatever your talents are. Identify what you like doing and do it well - get as good a degree as you can.

‘Then it’s about understanding your other skills to realise your talent and demonstrate it – for example employability and commercial awareness. You need talent to start with and then some soft skills to go round it.

‘Thirdly, it’s about making good networks for yourself, marketing yourself well and understanding the labour market you want to work in and making the most of it. It’s commercial awareness of your own area of interest.’

He adds: ‘Talent can be anything. It can be about being a really good doctor, teacher or historian, but you do need to have some innate talent to start with. Employers are looking for both talent and the ability to deploy that talent.’

So what are Jim’s predictions for the future – will graduates still maintain an edge in the job market?
‘It’s still a good market to be a graduate,’ he says. ‘It’s still worth going to university. The vast majority of graduates find jobs that they’re satisfied with – it might take time and be a struggle, but they eventually will do it.

‘There’s still plenty of work out there – whether there will be in two three years time is a different question. The big thing is that it’s the economy that will affect that.

‘If there’s an economic downturn then it’s going to affect everyone and graduates will still find it easier than other people to get work. It’s all about chances and taking them.’

Based at the University of Sussex’s campus near Brighton, the IES is a not-for-profit organisation that has over 60 staff and international associates. For more information log on to www.employment-studies.co.uk.

The Institute for Employment Studies has conducted a wealth of research into graduate employment. Here we present some of its key findings:

-    Professional subjects – like veterinary science, education and medicine - are more likely to get a graduate-level position than more general arts and humanities courses.

-    Graduates who are willing to move anywhere for their career are most likely to have higher level jobs, and better pay.

-    The demand for postgraduate study in the UK is increasing at a much faster rate than undergraduate study (41 per cent compared with eight per cent in five years). Postgraduates usually find ‘relevant and rewarding work’ soon after graduating.

-    Retention rates for graduates are high, with on average 86 per cent of recruits still with their employer after three years.

-    The majority of 1998 UK applicants, the first to pay tuition fees, felt that they had made the right choice by entering higher education, and that the benefits had outweighed the costs.

-    Most students worked whilst studying, either during vacation or in term time, but nearly half (42 per cent) who regularly worked during term time were less likely to gain a good degree.

-    The average level of debt on completion was almost £10,000. The highest debt was for those with a low family income and those who studied away from home.

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