Last week’s Graduate Outcome Survey, which looks at employment rates about four months after course completion, showed that full-time employment rates continue to improve. However, the proportion of new graduates looking for full-time work at this time is still high by historical standards, as the chart below shows (many of them have part-time jobs; this is not necessarily unemployment).
At the margins, there are things universities can do to make their graduates more employable. They can offer courses in fields likely to be in labour market demand, and they can offer work-integrated learning to improve graduate employability. Both were happening under the demand driven system.
But unless there is overall job growth graduate employment is unlikely to improve. When the labour market is tight the first thing to go is new entry-level positions, and so this disproportionately affects recent graduates. The effects of downturns are visible in the chart on annual growth in professional occupations and the labour market overall.
The good news is that growth in the professional labour market has fully recovered from the post-GFC crash and the second crash that started in mid-2012.