Debt-saddled grads ‘risk earning less than minimum wage’ five years after leaving uni

A new report by the think tank Policy Exchange highlights a severe graduate employment crisis in the UK, with nearly half of all university courses leaving the bottom quarter of graduates earning less than minimum wage five years after leaving university. Sociology, creative arts, and performing arts degrees are particularly affected, according to the findings. The report attributes the crisis to grade inflation and an explosion in university admissions, which have led to tens of thousands of pounds in debt for graduates facing bleak job prospects. Only 57 percent of graduates secure full-time work within 15 months of graduation, despite a surge in first-class degrees—now awarded to 30 percent of graduates, up from 13 percent two decades ago. Policy Exchange proposes drastic measures, including fewer university places, a freeze on tuition fees, and scrapping the real interest rate on student loans. The think tank also advocates for stricter grading caps and tougher entry standards for school leavers. Laura Trott, the shadow education secretary, supported the report, criticizing the higher education sector for leaving graduates with large debts, limited teaching time, and poor employment prospects. She described the system as unfair and demoralizing for young people. The report coincides with warnings that one in ten students graduating this summer may leave the UK to seek jobs abroad due to the country’s worst graduate job market in 30 years. Job platforms like Jumpstart receive around 1,000 CVs monthly but accept less than one percent of applicants. Critics, including Lord Glasman of the Blue Labour group, argue that mass expansion and marketization of universities have led to collapsing standards and a lack of skilled labor in critical sectors like construction and manufacturing.