Analysis shows more than 700,000 graduates are out of work and on benefits
More than 700,000 university graduates are out of work and claiming welfare benefits, new analysis from a think tank shows.
The Center for Social Justice (CSJ) said that according to the latest figures, 400,000 graduates are not in work and are claiming Universal Credit.
There were 240,000 graduates.
The think tank said there were 240,000 graduates who said they could not work for health reasons, a figure that has more than doubled since 2019.
The government says it is investing money to get young people into work and has launched a review of “what’s holding the younger generation back.”
The CSJ used the Office for National Statistics’ Labour Force Survey, in combination with data from the Department for Work and Pensions, to analyse data before and after the Covid pandemic.
It said 707,000 graduates, aged 16 to 64, were out of work and claiming one or more benefits in 2024, an increase of more than 200,000—or 46%—since 2019.
The CSJ said the number of people claiming Universal Credit stood at 400,000, while about 240,000 of the 700,000 said they were off work due to illness—a figure that has more than doubled since 2019 to 117,000.
Universal Credit is a means-tested benefit and is intended to help with the costs of living for people of working age who are low-income, out of work, or unable to work.
About 8.3 million people claimed benefits in October 2025, according to government data.
The CSJ, which was founded by Conservative MP Sir Iain Duncan Smith, said around 110,000 graduates under the age of 30 now claim at least one benefit without being in work.
Latest graduate labour market statistics, published in June, suggest that 88% of working-age graduates in England were in employment in 2024. For nongraduates, the figure was 68%.
But Sir Ian said the out-of-work figures showed the consequences of an education system “obsessed” with universities, which has ignored vocational training and the changing job market.
The CSJ said in its report that one in three British students receive vocational training on a university course.
It also says level 4 apprentices earn on average £5,000 more than university graduates after five years.
Daniel Lilly, a senior researcher at the CSJ, asserted that we must provide young people with the chance to thrive and propel key industries using their own skills.
A government spokesperson said, “Graduate inactivity rates are at the lowest on record, but we are determined to move further to support young people into work and to gain the skills they need to succeed.
“Through our New Jobs Guarantee, we are supporting young people who are out of work by helping them find paid placements, with employers such as E.ON., JD Sports, Tesco and TUI having already pledged their support.
“We are investing £1.5 billion to help millions of young people earn or learn, including through the expansion of apprenticeships and training.
We have also appointed former Health Secretary Alan Milburn to spearhead a review aimed at identifying the underlying factors impeding the progress of younger generations, demonstrating our urgent commitment to addressing this complex issue.
