For generations, young people have been told the path to opportunity is clear. Study hard, get a degree, and success will follow. This promise – central to the idea of “meritocracy” – has shaped the aspirations and investments of millions (though in reality, access to university and employment is also shaped by factors like family income, schooling and geography).
Today, however, many graduates in the UK and elsewhere are struggling to land a job – and it’s a problem which extends far beyond finding roles that match their qualifications. In some cases, graduates are being turned down for roles in supermarkets or warehouses – not because they’re unqualified, but because they’re seen as overqualified, too risky or surplus to requirements.
In terms of the UK economy, this isn’t just a problem of job shortages. It signals a deeper breakdown in the social contract – the long-held promise that education leads to opportunity. And it exposes how the connection between learning and labour is coming undone.
As the focus of employers, higher education providers and the state has shifted towards the notion of “employability” – the skills and attitudes that help people get and keep jobs – labour markets have become highly competitive and spoilt for choice.
At the same time, it’s worth remembering that while employment remains a key concern, the value of education extends far further – shaping personal growth and civic engagement, for example.
This article is part of Quarter Life, a series about issues affecting those of us in our twenties and thirties. From the challenges of beginning a career and taking care of our mental health, to the excitement of starting a family, adopting a pet or just making friends as an adult. The articles in this series explore the questions and bring answers as we navigate this turbulent period of life.
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Employability places the burden squarely on young people to become work-ready while ignoring the wider barriers they face. These include hiring algorithms, labour market saturation as graduate numbers remain high while vacancies dry up, and uneven access to opportunity.
Even with degrees and internships, many young people are finding themselves locked out of meaningful work. Research I undertook with colleagues on education-to-work transitions shows how graduates often invest heavily in becoming employable through a mix of soft skills, adaptability and professionalism. But these efforts now rarely guarantee a job.
Instead, graduates frequently enter a labour market that is both oversaturated and under-responsive. Over the past two decades, the number of graduates in the UK has grown sharply. This surge has intensified competition, pushing many into roles below their qualification level.
The UK government’s Get Britain Working white paper recognises this disconnect. It also highlights the legacy effects of the COVID pandemic, especially among young people aged 16–24 who are not in education, employment or training (Neets) – of which there are now estimated to be 987,000, and rising.
But while the government’s proposed youth guarantee scheme offers basic training and apprenticeships, it does little for those already in the labour market.
What’s blocking the way?
Despite the emphasis on developing skills, many young people – both graduates and non-graduates – struggle to progress in the labour market. For example, the number of entry-level roles in retail, hospitality and logistics is shrinking due to rising costs, automation and algorithmic hiring systems that privilege some over others.
Recent increases to employer national insurance contributions and the national minimum wage are putting pressure on payrolls, reducing already limited opportunities for young people.
UK chancellor Rachel Reeves’s 2024 budget contained some shocks for employers.
Fred Duval/Shutterstock
This highlights the limits of the popular narrative that effort always leads to reward. The idea that young people just need to try harder collapses under the weight of such constraints.
Businesses are also facing tight margins, as well as the problems that come with high staff turnover due to a lack of career development opportunities, as rising costs make it harder to invest in staff. But our research shows that even highly motivated graduates – those who network, gain skills, take internships and are adaptable – can struggle to get a foot in the door.
The UK employment rights bill, which is making its way through parliament, is designed to curb exploitative labour market practices. But professional bodies and trade associations warn that some employers may respond by cutting staff and reducing flexible work.
While reforms such as reframing the purpose of Jobcentres are critical in making unemployment seem unattractive, they are likely to fall short of creating sustained opportunities.
Policy paradox
All of this reveals a paradox. In trying to clamp down on job precarity, the UK government may be shutting young people out of the entry points they need, skilled or otherwise. Well-intentioned policies such as the youth guarantee and employment rights bill risk failure when the labour market often rewards privilege over merit.
Today’s labour market can penalise young people twice over. First, they’re expected to be employable with the right skillset. Yet even when they are, many find the door shut.
In my view, the way forward is to create new, accessible roles that reflect a broader duty of care on the part of employers, universities and policymakers. This includes building skills pathways along the lines of the Youth Futures Foundation programme, which works in deprived areas to create pathways that connect young people with support and jobs.
It also means embedding hiring practices that ensure a closer focus on someone’s potential, such as blind recruitment or diverse hiring panels.
Incentivising employers to hire and value young talent could be transformative, as could forging partnerships between universities and industry which focus on building the skills needed for employment.
Government initiatives such as the Trailblazers scheme, which identifies young people at risk of falling out of education or employment, are a good start. But they could be more effective alongside a combination of digital tools that bring together mobile apps for tracking career progress, a skills dashboard, and AI career advice.
Restoring the social contract means sharing responsibility. Our research finds that employers should regularly review how they assess talent and design career pathways.
Universities should collaborate with industry to ensure graduate skills align with employer expectations. And the government must address deep-seated inequalities shaped by region, class, race and institutional prestige.
Ignoring these issues mean they will continue to largely dictate who gets in, who gets ahead, and who gets left out. A collective responsibility ensures that education is recognised not just as a route to employment, but as a cornerstone of a fair, thoughtful and inclusive society.
