Jobless Rate For New Graduates Doubles Over Recent Recession

The unemployment rate for new graduates was 20 per cent in the third quarter of 2010, almost double the rate in the last quarter before the recent recession, according to new figures published today by the Office for National Statistics.

This was the highest unemployment rate for new graduates in over a decade, with almost one in five recent graduates, who were looking and available for work, but were unable to find any. The rate before the start of the recession, in quarter 1 of 2008, stood at 10.6 per cent.

Over this period unemployment increased faster for new graduates compared with the UK as a whole. Just before the start of the recession the unemployment rate for new graduates was around twice that of the UK as a whole (10.6 per cent compared with 5.2 per cent). By the end of the recession the rate for new graduates was 2.3 times higher (18.5 per cent compared with 7.9 per cent).

However, for those who graduated between two and six years ago, the unemployment rate rose more slowly than for the recent graduates.

ONS statistician Ole Black said:
“These figures on how graduates have fared in the job market since the onset of the recent recession will help inform public debate on unemployment among young people, and to assist this we’re also putting out a video podcast about the figures.”

There were 352,000 households in April to June 2010 in which no adult had ever worked, almost double the number in 1997, other figures published today show, with rises across most regions and household types. Also some of these were student households where everyone was aged 16 to 24 and in full-time education; excluding these leaves 269,000 households where no-one had ever worked.

The 352,000 households where no-one who had ever worked equated to 1.7 per cent of households in the UK. Of the areas across the country, the highest proportion was in Inner London at 6.5 per cent, three times more than the next highest – Outer London at 2.2 per cent. The lowest percentage was in the East of England at 0.5 per cent, followed by 0.8 per cent in the South West and 0.9 per cent in the South East.

The data on households where no-one has ever worked provide additional background to the headline figures which were previously published on the Department for Work and Pensions website.

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