News and commentary

Thomas Athey, Economic Analyst at the North East Local Enterprise Partnership (North East LEP), discusses the recent graduate outcomes data published on the North East Evidence Hub. 

One of the enduring North East narratives is that a high number of its young graduates leave the region looking for employment elsewhere. This is regarded as a significant loss for the region as these graduates take their talents and skills elsewhere, and part of the explanation behind the North East’s relatively low share of degree and above qualified workers. 

The data and evidence, however, suggests that the overall picture is more complicated, and that the North East’s principal weakness is attracting graduates from the rest of the country. 

The Higher Education Statistics Authority, (HESA), recently released new results from the graduate outcomes survey, a survey of graduates 15-months after graduation recording their activities. The most recent release is for the 2020/21 cohort of graduates. 

The data highlights the continued benefits or attending university from an employment perspective. 61% of graduates from the four North East LEP universities found paid full-time employment 15 months after university, and 76% of those were working in professional or associate professional occupations. These rates are almost the same as graduates from all UK universities. 

So far so good, but the key question from an economic development perspective is where are these graduates finding employment? Through linking these survey responses to UCAS applications, HESA can publish regional flow data which lets us answer this question. 

Firstly, students and graduates from the North East are overwhelmingly likely to stay in the region for both work and study. 70% of North East domiciled students who decide to attend university do so in the North East. Of this group, even including those who study in a different region, three out four will eventually find employment in the North East after graduating. 

There is of course also a large contingent of students from outside the region who come to the region to study, accounting for 46% of students in this cohort. These students, however, are unlikely to remain in region after they graduate. 85% then leave the region after graduating and only 21% of the North East’s graduate workforce are graduates originally domiciled outside of the region. 

The upshot is retaining graduates within the region is not what the North East struggles with, rather we could be better at attracting graduates from elsewhere. This, along with general lower participation in higher education in the region, is why the North East has a lower proportion of degree educated workers. 

It also demonstrates the value of statistics in challenging perceptions about regional narratives. Data and evidence need to be used to understand regional economic challenges, allowing policy and businesses to respond in the most effective manner.