Graduate Jobs

Lord Baker of Dorking Excerpts

Tuesday 6th January 2026 Lords Chamber

[Baroness Sherlock (Lab)]

My Lords, my noble friend is a tribute to Dundee Institute, and indeed HNDs and the country, so we all have cause to be grateful for its investment in him. My noble friend is right that there are clearly challenges in the graduate market, but I want to say up front on AI that we do not yet see the evidence that this necessarily means a long-term decline in graduate jobs. AI is having a range of impacts; its impact is contested and it is different and it is changing as we go. However, his point is incredibly important, and the Government need to act to ensure that graduates and young people generally have access not just to entry-level jobs but to proper high-quality careers. That means investing in sectors which are producing growth, making sure we have the right skills, and that career services, both within education and in the new jobs and career service, are supporting people to make sure they develop the skills needed to go into the sectors where there are increasing numbers of jobs and those jobs are better paid. I am very optimistic. AI offers opportunities as well for young people. Young people are much more technologically savvy—than me anyway, I hope—and much more optimistic about the impact of AI, so there are real opportunities as well as challenges.

[Lord Baker of Dorking (Con)]

My Lords, instead of finding jobs for graduates, we should be trying to persuade more 18 year-olds not to go to university. In the colleges that I support, 25% of our leavers become apprentices compared to 4% from an ordinary school. Apprentices can earn as much as £30,000 a year at the age of 18. May I persuade the Minister that what she really ought to be doing is to persuade more schools to produce apprentices?

[Baroness Sherlock (Lab)]

First, I pay tribute to the work that the noble Lord has done in this important area of technical education, working with employers and looking at how we teach our young people. I am grateful to him, and I am sure the whole House is, for his track record in that area. Secondly, he does not need to persuade us, which is the good news. The Prime Minister has recently made a new ambition for two-thirds of young people not just to go to university but to go to university or to take up one of these gold-standard apprenticeships. That includes targeting at least 10% of young people to go into level 4 or level 5 study. We know that getting people into the right areas with the right skills means they are much more likely to get jobs. Most graduates get jobs, but so do people who come through good apprenticeships and significant numbers end up staying on with the employers who hired them—the noble Lord knows all of this, but I am telling the House. Our job as government is to recognise that there are challenges coming down the track. We need to be the country which sees the opportunities, skills up our young people to take them up, encourages and supports employers to train them correctly, works with those who are doing the teaching and gets growth in the areas that drive jobs. We are going after all of those.