Employment rates of recent graduates

Data extracted in July 2016. Most recent data: Further Eurostat information, Main tables and Database. Planned article update: June 2017.
Figure 1: Employment rates of recent graduates (aged 20–34) not in education and training, by educational attainment level and years since completion of education, EU-28, 2015
(%)
Source: Eurostat (edat_lfse_24)
Table 1: Employment rates of recent graduates (aged 20–34) not in education and training, 2015 (1)
(%)
Source: Eurostat (edat_lfse_24) and (edat_lfse_32)
Figure 2: Employment rates of recent graduates (aged 20–34) not in education and training, by educational attainment level, EU-28, 2005–15 (1)
(%)
Source: Eurostat (edat_lfse_24)
Figure 3: Employment rates of recent graduates (aged 20–34) not in education and training, 2005 and 2015 (1)
(%)
Source: Eurostat (edat_lfse_24)
Figure 4: Employment rates of recent graduates (aged 20–34) not in education and training, by educational attainment level, 2015 (1)
(%)
Source: Eurostat (edat_lfse_24)
Figure 5: Employment rates of recent graduates (aged 20–34) not in education and training, by sex, EU-28, 2005–15 (1)
(%)
Source: Eurostat (edat_lfse_24)
Figure 6: Employment rates of recent graduates (aged 20–34) not in education and training, by sex, 2015 (1)
(%)
Source: Eurostat (edat_lfse_24)

This article presents an overview of European Union (EU) statistics related to the employment rates of young people (those aged 20–34 years) who have recently graduated from either upper secondary or tertiary levels of education (as defined by the international standard classification of education (ISCED)). It provides information on the transition from education to work and analyses the access to the labour market among recent graduates (those who have graduated within the last one to three years).

This article is one of a set of statistical articles forming part of an online publication on education and training; it provides a complement to information on early leavers from education and training and young people neither in employment nor in education or training.

Main statistical findings

Employment rates of recent graduates

The data presented in this article refers to ‘graduates’ in a broad sense of the term, namely people having left education and training with at least an upper secondary level of educational attainment (ISCED 2011 levels 3 to 8).

A tertiary education or a vocational education increases employment opportunities

Figure 1 presents EU-28 employment rates for recent graduates (aged 20–34) by level of educational attainment. It reveals that the highest employment rates (for people not in education or training alongside their employment) in 2015 were recorded for those who had graduated with a tertiary education (ISCED levels 5–8), while lower employment rates were recorded for those with an upper secondary or post-secondary non-tertiary education (ISCED levels 3 or 4). Note that recent graduates with a vocational upper secondary or post-secondary non-tertiary education (hereafter referred to as ‘vocational graduates’) systematically recorded higher employment rates than those with a general upper secondary or post-secondary non-tertiary education (hereafter referred to as ‘generalist graduates’). As such, it would appear that apprenticeships and other kinds of education programmes that equip students with the knowledge, know-how, skills and/or competences required for a particular occupation increase the likelihood of recent graduates being able to find a job.

It should be noted that the indicator 'employment rate of recent graduates' presented in this article concerns recent graduates (in other words, those who have graduated within the last one to three years) meeting two criteria, namely:

  • being in employment, and;
  • not in any further (formal or non-formal) education or training (during the four weeks preceding the survey).

The proportion of recent graduates who are undertaking education or training alongside their employment – not covered by the above-mentioned indicator – varies depending on their level of educational attainment and this may influence the employment level of recent graduates.

The other aspect clearly apparent from Figure 1 is the increase in recent graduate employment rates as a function of the time spent since the completion of education. Again it should be noted that this may reflect falling participation in education and training alongside employment as the time since graduation increases, and not just increases in the chances of employment.

For all three groups of educational attainment, the lowest employment rates for graduates aged 20–34 were recorded for those who had left education or training during the three previous years, which reflects, to some extent, the initial difficulties that recent graduates have in finding their first job.

The employment rates at EU-level for graduates having left education or training during the last three years shows that for those with a tertiary education it was 79.9 % in 2015, while the corresponding rate for vocational graduates was 6.9 percentage points lower. By contrast, the employment rate for generalist graduates was considerably lower, at 60.5 %, or some 19.4 percentage points below the corresponding figure for tertiary graduates.

Skills mismatch: tertiary graduates may take jobs for which they are over-qualified

Some of the difference between generalist and tertiary graduates may be linked to tertiary graduates deciding to take jobs for which they were over-qualified in order to get into the labour market, thereby boosting the employment rate for tertiary graduates while at the same time lowering employment rates for other graduates. This may be particularly important in those cases where labour market demand is subdued, for example, following the onset of the global financial and economic crisis.

Benchmark target for ET 2020

While each EU Member State remains responsible for its own education and training system, the strategic framework for education and training 2020 (ET 2020) is designed to address common challenges, while providing a forum for the exchange of best practices and sharing evidence of policy initiatives within this domain that have been a success.

ET 2020 sets eight education and training benchmarks to be achieved in the EU-28 by 2020. Among these, one target is specifically related to the employment rate of recent graduates. It was introduced in May 2012 and aims to see the share of employed graduates (aged 20–34 with at least upper secondary education attainment and having left education one to three years ago) reaching 82.0 %.

It is important to note that the target employment rate for recent graduates encompasses both those leaving education and training with at least an upper secondary or post-secondary, non-tertiary qualification (ISCED 2011 levels 3 and 4) with either general or vocational orientations, and those leaving with a tertiary education qualification (ISCED 2011 levels 5–8).

Employment rates for recent graduates in Malta and Germany were approximately twice as high as those recorded in Greece or Italy

Table 1 provides a detailed picture of the latest information available for employment rates of recent graduates. It is based on graduates (aged 20–34) who had completed their education or training between one and three years prior to the survey being conducted. In 2015, the EU-28 employment rate for this subpopulation was 76.9 %, ranging from highs of 90.4 % in Germany and 95.1 % in Malta to lows of 45.2 % in Greece and 48.5 % in Italy; a lower rate was also recorded in the former Yugoslav Republic of Macedonia (48.0 %). Aside from Germany and Malta, there were seven additional EU Member States where the employment rate of recent graduates was above the 82.0 % benchmark target set by the ET 2020: the Netherlands, Austria, Sweden, the United Kingdom, Luxembourg, the Czech Republic and Lithuania.

Development over time

Employment rates of recent graduates peaked in 2008

In keeping with the remainder of the population, recent graduates have been affected by the global financial and economic crisis. Figure 2 shows that EU-28 employment rates of recent graduates climbed during the period 2005–08, both for those graduating with an upper secondary or post-secondary non-tertiary education, as well as those graduating with a tertiary level of educational attainment. Employment rates peaked at 77.0 % for the former and 86.9 % for the latter in 2008.

With the onset of the financial and economic crisis, there followed a period of six consecutive annual reductions in employment rates of recent tertiary graduates, but in 2015 this rate showed signs of recovery (up by 1.4 percentage points compared to 2014). By 2015, the EU-28 employment rate for recent tertiary graduates stood at 81.9 % ( percentage points lower than its relative peak in 2008).

Turning to recent graduates from upper secondary or post-secondary non-tertiary education, the EU-28 employment rate was 69.4 % in 2013 (which was 7.6 points lower than in 2008). By contrast, data for 2014 saw an upturn for this subpopulation, as their rate rose by 1.3 points to 70.7 % and remained rather stable in 2015 at 70.8 %.

In 2015, the gap in employment rates between recent tertiary graduates and recent upper secondary or post-secondary non-tertiary education graduates was 11.1 percentage points, which was larger compared to the situation in 2008 (9.9 points).

The increase in the employment rate of recent graduates through to 2008 was cancelled out by the economic and financial crisis …

A comparison between 2005 and 2015 for employment rates of recent graduates is shown in Figure 3. There was almost no change in the EU-28 employment rate over this period (76.5 % in 2005 compared with 76.9 % in 2015). This reflects the sluggish economic recovery post-2008 which cancelled out any gains made during the first four years of the period under consideration (as previously shown in Figure 2).

… with a particularly large impact in those EU Member States most affected by the crisis

The impact of the crisis on the access to the labour market of graduates was particularly pronounced in Greece and Italy, where the employment rate of recent graduates fell by almost 15.0 percentage points during the most recent 10-year period for which data are available. There were also considerable reductions in Spain, Portugal and Ireland — all of which were amongst those Member States most seriously affected by the crisis — as employment rates of recent graduates fell by 10.0 points or more. It is interesting to note that back in 2005, Ireland and Portugal each recorded employment rates for recent graduates that were above the 82.0 % ET 2020 benchmark target.

Of the nine EU Member States that recorded employment rates for recent graduates in 2015 that were above the 82.0 % benchmark target, Germany and Sweden registered the most sizeable increases between 2005 and 2015, with gains of 10.8 percentage points and 6.5 points respectively. By contrast, although the latest employment rates for recent graduates in the Netherlands, the United Kingdom, Luxembourg and the Czech Republic remained above the 82.0 % target, each of these recorded reductions between 2005 and 2015.

There were relatively high increases in employment rates of recent graduates in some Member States

In 2005, only five EU Member States — Bulgaria, Poland, Croatia, Italy and Greece — had employment rates for recent graduates that were below 70.0 %, while the remaining Member States each reported rates of at least 72.1 %. Between 2005 and 2015, employment rates of recent graduates rose by as much as 10.8 percentage points in Germany and 10.1 percentage points in Poland, although this was from a relatively low starting point (67.3 %) for the latter.

Disparities by educational attainment level

Educational attainment protected recent graduates to some degree from the crisis …

The level of educational attainment plays a key role when recent graduates seek employment. Those with a tertiary level of educational attainment recorded the highest employment rates and were generally better shielded from the risks of unemployment than their peers who entered the labour market with lower levels of educational attainment. In 2015, the employment rate of recent tertiary graduates was over 90.0 % in Sweden, Austria, the Netherlands, Germany and Malta. There were nine EU Member States where this indicator was less than 80.0 %, although only three of these recorded rates that were lower than 70.0 %, the exceptions being three of the EU Member States most affected by the financial and economic crisis: Greece, Italy and Spain.

A comparison between employment rates for the whole population (those aged 20–64) irrespective of their level of educational attainment and employment rates of recent graduates shows that graduates generally benefit from the completion of their education. In 2015, Greece and Italy were the only EU Member States where the employment rate of recent graduates was lower than the overall employment rate, suggesting that new graduates faced particular challenges to enter the labour market in both of these countries.

While young people have in recent years faced increasing challenges in their transition from education into the workforce, Figure 4 shows that employment rates of recent tertiary graduates in 2015 were higher than employment rates for those graduating with a generalist or vocational qualification in all but one of the 26 Member States for which data are available (incomplete information for Croatia and Slovenia). The only exception was the Czech Republic, where there was a higher employment rate among recent generalist graduates (85.2 %) than for either vocational (81.5 %) or tertiary graduates (82.7 %).

In 2015, the biggest differences in employment rates between recent tertiary graduates and recent generalist graduates (among those aged 20–34) were recorded in Belgium and Bulgaria, where the former had an employment rate that was just over 40 percentage points higher, while differences of 25–39 points were recorded between these two subpopulations in Italy, Germany, Romania, Cyprus and Estonia.

Employment rates of recent vocational graduates were generally higher than those of generalist graduates. Indeed, among the 26 EU Member States for which data are available, there were six where this pattern did not hold: Malta, the United Kingdom, Finland, Ireland, the Czech Republic and France. As a result, the gap between employment rates for recent tertiary graduates and recent vocational graduates was usually narrower and this was particularly true in the Czech Republic, Denmark, Estonia, Germany and Cyprus where the differences were no more than 4.0 percentage points (in favour of recent tertiary graduates). In contrast, in Croatia and Bulgaria there was a considerably wider gap between the employment rates of recent tertiary graduates and recent vocational graduates, with differences of 25–30 percentage points.

Gender differences

Recent male graduates in the EU were more likely to find work than their female counterparts

In 2015, the EU-28 employment rate of recent male graduates (78.6 %) was somewhat higher than the rate recorded among recent female graduates (75.3 %); this continued a pattern that was apparent over the latest 10-year period for which data are available, as shown in Figure 5. Some of these gender differences may be explained by the nature of studies (fields) that are typically followed by the two sexes (for example, a higher proportion of science and technology students tend to be male) and by differences in labour market demand for graduates with different skills.

The largest gender gaps for EU-28 employment rates of recent graduates were recorded in 2005 and 2007. However, with the onset of the financial and economic crisis, there was a rapid reduction in the gap between male and female rates. In 2009, the employment rate of recent male graduates fell by 4.8 percentage points, compared with a reduction of 2.6 percentage points among recent female graduates. This was short-lived as the gender gap widened again in 2010 and remained within the range of 3.3–4.5 percentage points (in favour of young male graduates) during the period 2010–15.

The gender gap in employment rates of recent graduates was present in 22 of the EU Member States and was most pronounced in the Czech Republic and Romania where the employment rates of recent male graduates were 15.3 and 12.1 percentage points higher than those for women; an even larger gender gap was recorded in Turkey (21.6 points).

By contrast, employment rates for recent female graduates were slightly higher than those for their male counterparts in Sweden, Finland, Croatia, Cyprus and France, with a difference between the sexes of no more than 2.4 percentage points, a gap that rose to 2.9 points in Belgium; there was also a gap in favour of women in Switzerland, Norway and the former Yugoslav Republic of Macedonia (respectively 1.7, 4.1 and 5.7 points difference between the sexes).

Data sources and availability

Key concepts

The employment rate is obtained by dividing the number of persons in employment of a particular age group by the total population of the same age group. The indicator for recent graduates is calculated for the age group 20–34 and concerns those who attained their highest level of educational attainment one to three years beforehand. The term ‘graduate’ refers to any person who has left education and training with at least an upper-secondary or post-secondary, non-tertiary qualifications or with a tertiary qualification (ISCED 2011 levels 3–8). The denominator for the ratio is based solely on those persons who were no longer in education or training and hence excludes both:

  • those who continue to follow their studies while working (for example, part-time jobs, seasonal work, holiday jobs);
  • those who are primarily working but at the same time engaged in some form of education or training, for example, apprentices.


For the purpose of this article, graduates are defined as those who entered and successfully completed an education programme. The information presented refers to those students who graduated from ISCED 2011 levels 3–8. Graduates are only counted once, at the level of the highest programme successfully completed.

Data source

The EU labour force survey (LFS) provides statistics on employment rates of recent graduates. The LFS is documented in this background article which provides information on the scope of the data, its legal basis, the methodology employed, as well as related concepts and definitions.

Levels of educational attainment

Common definitions for education systems have been agreed between the UNESCO Institute for Statistics (UIS), the OECD and Eurostat. UNESCO developed the International standard classification of education (ISCED) to facilitate comparisons across countries on the basis of uniform and internationally agreed definitions. In 2011, a revision to the ISCED was formally adopted, referred to as ISCED 2011. Prior to this, ISCED 1997 was used as the common standard for classifying education systems. Note that Eurostat statistics on employment rates of recent graduates have a break in series in 2014 when the first information collected under the ISCED 2011 classification became available; prior to this date these statistics were collected using ISCED 1997. For more information, see the article on the ISCED classification.

Note on symbols used in tables

The colon (‘:’) is used to show where data are not available.

An italic font is used to show where data are provisional or estimated (and are therefore likely to change in the future).

Context

Education and training 2020 (ET 2020) is the EU’s strategic framework for cooperation in education and training. It provides a forum for exchanges of best practices, mutual learning, as well as advice and support for policy reforms. ET 2020 has set eight EU benchmarks for 2020, one of which is specifically in relation to employment rates for recent graduates, namely, that: ‘the share of employed graduates (aged 20–34 with at least upper secondary education attainment and having left education 1–3 years ago) should be at least 82 %.’

The Europe 2020 strategy sets ambitious objectives for smart, inclusive and sustainable growth. Quality education and training, successful labour market integration and a higher degree of mobility of young people are all considered key factors for unleashing the potential of the EU’s young graduates in order to help achieve the Europe 2020 objectives. To achieve a successful and efficient transition from education and training to employment, recent graduates should be able to find well-paid jobs that use their knowledge/skills acquired in education and training. Obtaining a tertiary level of educational attainment or a vocational qualification improves the employment prospects of young people. Similarly, persons with qualifications such as these tend to find their first job faster than those with lower levels of educational attainment. Indeed, there has been an increase in the number of tertiary graduates within the EU-28 in recent years, reflecting a view that as economies become more highly-skilled and reliant on innovation and technology, they will require an increasingly well-educated workforce. The percentage of the EU-28 population (aged 25–64) who had successfully completed tertiary studies rose from 20.0 % in 2002 to 30.1 % in 2015.

The overall state of an economy is also an important determinant for both the availability and the quality of job opportunities. With a downturn in economic fortunes resulting from the global financial and economic crisis, graduates in the EU faced a range of difficulties when trying to enter labour markets, with persistently high unemployment rates and many graduates accepting work for which they were over-qualified or unqualified. Such a mismatch may result from differences between occupations and qualifications (a vertical mismatch), or from differences between occupations and fields of study (a horizontal mismatch); the former is generally more common within the EU.

Matching educational outcomes and labour market needs is a key component of the Europe 2020 strategy. Indeed, equipping people with the right skills for employment has been identified as one of four priorities of the flagship initiative ‘An agenda for new skills and jobs’, which seeks, among others, to better understand where future skills shortages are likely to lie in the EU. The ‘Youth guarantee’ calls on EU Member States to ensure that all young people under the age of 25 receive a good quality offer of employment, continued education, an apprenticeship, or a traineeship within four months of leaving formal education or becoming unemployed. Its main aim is to help tackle youth unemployment and to smooth the transition from education to work.

To match the supply and demand of skills better, the European Commission launched an EU skills panorama in December 2012. This portal aims to help anticipate skills needs and improve the responsiveness of education and training systems. Furthermore, the European Commission monitors the jobs market, through the regular publication of a vacancy and recruitment report, a vacancy monitor, and a job mobility bulletin, which together provide a comprehensive overview of European labour markets.

The education, youth, culture and sport Council meeting of 10 and 11 May 2012 adopted the following benchmark on the share of employed graduates from education and training: by 2020, the share of employed (20–34 year-olds) having left education and training no more than three years before the reference year should be at least 82 %.

For more details: refer to the conclusions of the May 2012 meeting, available on the Council’s website.

See also

Further Eurostat information

Publications

Main tables

Education and training outcomes (t_educ_outc)
Employment rates of recent graduates (tps00053)

Database

Transition from education to work (edatt)
Labour status of young people by years since completion of highest level of education (edatt2)
Employment rates of young people not in education and training by sex, educational attainment level and years since completion of highest level of education (edat_lfse_24)
Employment rates of young people not in education and training by sex, educational attainment level, years since completion of highest level of education and citizenship (edat_lfse_31)
Employment rates of young people not in education and training by sex, educational attainment level, years since completion of highest level of education and country of birth (edat_lfse_32)

Dedicated section

Methodology / Metadata

Source data for tables and graphs (MS Excel)

External links