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An analysis conducted by the Centre for Social Justice (CSJ) reveals that over 700,000 university graduates in the UK are currently unemployed and receiving welfare benefits. According to the think tank’s research, around 400,000 of these graduates are claiming Universal Credit, while nearly 240,000 report being unable to work due to health problems. Notably, the number of graduates citing health reasons as a barrier to employment has more than doubled since 2019.
The CSJ’s findings are based on data from the Office for National Statistics’ Labour Force Survey combined with figures from the Department for Work and Pensions, comparing trends before and after the Covid-19 pandemic. For individuals aged 16 to 64 in 2024, the number of unemployed graduates receiving benefits rose by approximately 46%, an increase of over 200,000 since 2019. Universal Credit, a means-tested benefit aimed at providing financial support for working-age people on low incomes, out of work, or unable to work, was claimed by 400,000 graduates as part of this population. As of October 2025, about 8.3 million people in total were claiming Universal Credit, according to government data.
Founded by Conservative MP Sir Iain Duncan Smith, the CSJ highlights that approximately 110,000 graduates under the age of 30 are now claiming at least one benefit without being employed. Official labour market figures published in June suggest that 88% of working-age graduates in England held jobs in 2024, compared with 68% of non-graduates. Sir Iain criticized the education system for being overly focused on university degrees, which he argues neglects vocational training and fails to align with the evolving demands of the job market. The CSJ reports that only one in three university students receive vocational training, despite data showing that level four apprentices tend to earn £5,000 more on average than university graduates five years after qualifying.
Daniel Lilley, a senior researcher with the CSJ, emphasized the urgent need to provide young people with opportunities to develop skills that meet industry demands. A government spokesperson acknowledged that graduate inactivity is currently at its lowest level on record but stressed the commitment to further support young people entering the workforce. The government has introduced a Jobs Guarantee aimed at helping unemployed youth find paid placements, with backing from major employers including E.ON, JD Sports, Tesco, and TUI. Additionally, a £1.5 billion investment is underway to expand apprenticeships and training programs. To better understand and address the challenges faced by young people today, former Health Secretary Alan Milburn has been appointed to lead a review examining the underlying causes of their difficulties in securing work
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