Mixed fortunes: graduate utilisation in service industries

Geoff Mason ()

No 182, National Institute of Economic and Social Research (NIESR) Discussion Papers from National Institute of Economic and Social Research

Abstract: Service industries now account for over 80% of total graduate employment in the UK economy. This paper focusses on three sectors ‐ retailing, computer services and transport & communications ‐ and identifies two mechanisms by which graduate substitution has contributed to upgrading of hitherto non‐graduate jobs. The scope for further upgrading appears limited and the burden of adjustment falls more on individual graduates than on employers. Many enter largely unmodified low‐paid jobs where their skills and knowledge are under‐utilised and it is hard for them to catch up with the initial headstart in salaries and training opportunities which 'mainstream' graduates in the same industries have received. There is therefore a widening divergence of salary and career prospects across the UK graduate labour market.

Date: 2001-01
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Persistent link: https://EconPapers.repec.org/RePEc:nsr:niesrd:182

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