Apprenticeships offer lifeline as graduate jobs tumble
New research from Employment Hero suggests that SME leaders are increasingly backing apprenticeships, offering young people a high-value and credible route into the workforce. This comes as the 30th March UCAS advisory deadline approaches, and students are making the decisions that will shape their future.
The findings show that nearly half of SMEs (46%) now value apprenticeships and degrees equally, while 37% say they place greater value on apprenticeships. Only 11% of leaders view apprenticeships as less valuable.
That support is not just ideological, it is rooted in business impact. More than three quarters of SME leaders (78%) say they hold a positive view of apprenticeships and have seen increased productivity as a result.
The research also points to a growing appetite among employers to do more, with 73% of SME leaders saying they are ready to make use of the additional apprenticeship support announced in last year’s Autumn Budget.
This is good news, and actually might help the current unemployment crisis in the UK. The UK is experiencing a startup boom, with Britons founding new companies at the fastest rate in two years last quarter, which would usually mean more jobs. But figures have found that these startups are creating just 2.7 jobs on average, according to Bloomberg. Graduate and entry-level jobs have been the hardest hit, with graduate vacancies falling 45% over the past year, and entry level roles are down 4.4%. With the rising appetite of SMEs to offer apprenticeships, as well as the increased attitude towards this path into the workforce, this shift could offer a meaningful lifeline to young people currently struggling to break into the job market.
Kevin Fitzgerald, UK Managing Director at Employment Hero, said: “As the UCAS deadline approaches, many students will be weighing up what comes next. University remains the right choice for many, but it should not be seen as the only route to a successful career. Our research shows SME employers increasingly value apprenticeships, not only for the opportunities they create for young people, but for the real business benefits they deliver. The focus now should be on making sure students feel confident considering all their options, while giving employers a system that is simple enough to help them invest in apprentice talent.”
With a generation of young people weighing their current options and a cohort of small business employers ready to invest, the pieces are in place – the question is whether the system can move fast enough to connect them.
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