Prime Highlights:
University graduates make up 64% of the workforce in the UK’s key growth sectors, according to new analysis by Universities UK (UUK).
The UK will need an additional 11 million graduates by 2035, with projections showing 61% of the workforce holding a higher education qualification by then.
Key Background:
New analysis has highlighted the pivotal role that university graduates will play in the success of the UK government’s industrial strategy. According to data from Universities UK (UUK), graduates account for a significant proportion of the workforce in sectors identified as key to national economic growth. In particular, the average proportion of graduates in the workforce across eight priority sectors is 64%.
The findings come in light of official government projections, which estimate that the UK will need an additional 11 million graduates by 2035. This is expected to result in 61% of the workforce holding a higher education qualification by that time, up from 52% in 2025 and 48% in 2020.
The eight sectors identified as central to driving the UK economy—ranging from life sciences (70%) to advanced manufacturing (48%)—heavily rely on a graduate workforce. Research indicates that higher education participation has been essential in preventing a decline in productivity. Between 2001 and 2007, graduates accounted for 22% of the UK workforce, increasing to nearly 35% between 2014 and 2019.
Universities across the UK are working in partnership with major employers to meet the demand for skilled graduates in key sectors. For instance, the University of Derby’s Nuclear Skills Academy, in collaboration with Rolls Royce, is helping ensure the UK’s nuclear workforce remains competitive. Similarly, the University of Liverpool has partnered with Protein Works to equip graduates with industry-specific skills, while the University of Plymouth offers students mentoring opportunities through its partnership with Babcock.
However, UUK’s analysis reveals a stark divide between London and the Southeast, where graduate representation is highest, and other regions. To maintain national competitiveness, urgent action is needed to bridge this gap, which could require an additional 4 million graduates. The government’s focus on expanding access to higher education is crucial for a workforce that can drive economic growth and productivity in the coming decades.
