'Social Mobility' TARGETjobs Breakfast News Sept 2013
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Transcript of 'Social Mobility' TARGETjobs Breakfast News Sept 2013
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SOCIAL MOBILITY – ARE WE GETTING ANYWHERE?
Quaglino’s, Thursday 12 September
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AGENDA FOR TODAYWelcome – Simon Rogers
THE ECONOMIC FORECASTDennis will provide his usual unique take on the macro economy, focusing on the impact of cuts
in public sector spending and will share his views on how it needs to reform for the future.THIS DEBATE IS HERE TO STAY!
Stephen Isherwood, CEO, Association of Graduate Recruiters, will share some extracts from the recent AGR annual survey of employers, looking at how firms are measuring
progress in recruiting a socially diverse workforce and how the social mobility debate in graduate recruitment is getting a lot more attention.
THE CLASS CEILINGPolly Toynbee, political and social commentator, The Guardian, will talk about
the broad structural problems within our society that invariably lead to an imbalance of opportunity for young people.ARE WE GETTING ANYWHERE?
Simon Howard, Chairman, work group, will argue that, no matter how much employers might trumpet their commitment to diversity and inclusion, their current graduate
recruitment practices result in low levels of social mobility – and always will.
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Unveiling the new TARGETjobs
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New features of TARGETjobs
• Employer hubs – company information, jobs and how to get hired advice in one designer microsite
• Responsive design – easy navigation across mobile, tablet and desktop• Personalisation benefits – including saved search and companies launching early
October• Direct access to timely career advice – improved homepage and sector homepage layout
to direct users to key content• Improved search – all content searchable, discoverable and easy to access
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National Graduate Employability Conference• The only employability
conference in the UK to bring together 600–800 multi-disciplinary undergraduates with recruiters and universities
• Keynote speaker announced shortly
• Facilitated by Radio 1’s Aled Haydn-Jones
• Presentations, cross-sector panel debates, interactive mixed-table discussions and networking sessions
• Sponsorship opportunities available including hosting your own table of students from your target course area
New 11 November at Wembley
Stadium
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trendence UK Graduate Barometer
• Brand new London-based research centre• Dedicated UK research team• 25,000 students will take part over next 6 months• 400 employers• A NEW diversity focus for 2014 – covering ethnicity,
nationality, social mobility, gender…
As well as…..uniquely surveying students in a way that generates insights by year group, Russell Group vs non-Russell Group and by individual campuses, offering a bespoke competitor analysis and much more….
Bespoke reports
Workshop
Online tool
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NEW trendence Law Student Barometer
• 50+ key STEM course campuses
• 4000+ responses• STEM female students only,
cut by year groupCompetitor AnalysisA NEW! Diversity focus Line your firm up against the
top 10 firms that STEM females most want to work for – and find out why!
• 25 key law course campuses
• 3000+ responses• Law & non-law students,
cut by year groupCompetitor AnalysisA NEW! Diversity focus Collecting 25% more
responses from Law Students @ target group campuses and courses
NEW trendence STEM female Student Barometer
Bespoke reports
Workshop
Online tool
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THE ECONOMIC FORECAST
Dennis Turner, former chief economist, HSBC Bank plc
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THE RECOVERY STRENGTHENS
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The recovery takes hold
-8.0
-6.0
-4.0
-2.0
0.0
2.0
4.0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
% QUARTERLY
ANNUAL
Long-term average
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But bumps in the road remain
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1 Consumer debt overhang
75
100
125
150
175
1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011
%
75
100
125
150
175
%
Household debt:income ratios
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2 Europe still in the doldrums
20102011
2013
20142012
-8
-6
-4
-2
0
2
4
6
%
-8
-6
-4
-2
0
2
4
6
%
Euro Area Greece Portugal Spain
GDP growth
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3 Unemployment stubbornly high
500
750
1,000
1,250
1,500
1,750
2,000
2007 2008 2009 2010 2011 2012 2013
0
1
2
3
4
5
6
7
% o
f wo
rkfo
rce
Unemployed 000s (L axis)Unemployment rate (R axis)
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4 The squeeze on the public sector
a) Finances
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Government finances weakened
-15
-10
-5
0
5
10
15
20
1999/00 2001/02 2003/04 2005/06 2007/08 2009/10 2011/12
% o
f G
DP
20
25
30
35
40
45
50%
of G
DP
CURRENT REVENUE (RHS)
CURRENT EXPENDITURE (RHS)
SURPLUS/DEFICIT (LHS)
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So net debt (as a % of GDP) soared
Sustainable Investment Rule
Budget Statement, March 2013
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Getting the deficit down
0
30
60
90
120
150
180
2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016-17 2017-18
£ bn
0
2
4
6
8
10
12
%
Net borrowing (L axis)
% of GDP* (R axis)
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Govt receipts and spending
35
40
45
50
55
2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18
% of
GDP
Budget Statement, March 2013
----- Spending----- Receipts
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4 The squeeze on the public sector
a) Jobs
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Public sector employment
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
%
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Public v private employment trends
10
12
14
16
18
20
22
24
26
28
30
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
25,000
26,000
27,000
28,000
29,000
30,0000
00
s
------ Public sector share (%)------ Total employment (000s)
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Annual changes in employment
-6
-4
-2
0
2
4
6
2001 2003 2005 2007 2009 2011 2013
---- Private sector---- Public sector
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Regional dependencies on public sector
0
5
10
15
20
25
30
NorthEast
NorthWest
Yorksand
Humb
EastMidlands
WestMidlands
East ofEngland
London SouthEast
SouthWest
Wales Scotland NorthernIreland
%
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OUTLOOK
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Inflation – now likely to ease
-2
-1
0
1
2
3
4
5
6
2009 2010 2011 2012 2013 2014
% c
han
ge m
on
th o
n m
on
th
CPI RPI
Target
Range
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Interest rates to stay low
0
1
2
3
4
5
6
7
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
%Forecast
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GDP (100%) = Consumer spending (64%)
Where is growth coming from?
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Real earnings starting to grow again
-4
-3
-2
-1
0
1
2
3
4
5
6
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Average earnings growth
Consumer price inflation
Real earnings growth
%
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So, a slow consumer recovery
-3.5
-2.5
-1.5
-0.5
0.5
1.5
2.5
3.5
4.5
5.5
% C
HA
NG
E
Consumer spending growth (%)
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GDP (100%) = Consumer spending (64%) +
Investment (15%)
Where is growth coming from?
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Companies reluctant to spend but
50
60
70
80
90
100
110
120
2001 2003 2005 2007 2009 2011
%
40
50
60
70
80
90
100
110
120
130
140£
billio
n
Investment relative to post-tax surplus(L axis)
Level of investment (R axis)
Investment by Private Non-financial Corporations
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investment to pick up……at last
-16
-12
-8
-4
0
4
8
12
16
20
24
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
% a
nn
ual
gro
wth
Business Investment
Forecast – OBR 2013
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GDP (100%) = Consumer spending (64%) +
Investment (15%) +
Government spending (23%)
Where is growth coming from?
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Govt unwilling contributors to spending
0
30
60
90
120
150
180
2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016-17 2017-18
£ bn
0
2
4
6
8
10
12
%
Net borrowing (L axis)
% of GDP* (R axis)
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GDP (100%) = Consumer spending (64%) +
Govt consumption (23%) +
Investment (15%) +
Net trade (-2%) (Exports 30% – Imports 32%)
Where is growth coming from?
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Trade becomes a plus for growth
-5
-4
-3
-2
-1
0
1
2
3
4
5
2009 2011 2013 2015 2017
% o
f G
DP
-12
-9
-6
-3
0
3
6
9A
nn
ual %
chan
ge
BALANCE OF PAYMENTS DEFICIT (LHS)
Annual export growth (% RHS)
Annual import growth (% RHS)
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Turning the corner
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Sluggish growth as good as it gets
-7.0
-6.0
-5.0
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
2007 2008 2009 2010 2011 2012 2013 2014
%
QUARTERLY
ANNUAL
Long-term average
Forecast
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THANK YOU
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A classy approach to Social Mobility
Stephen Isherwood, Chief Executive, Association of Graduate Recruiters
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The charts that shame Britain Source: The
Guardian
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The business case – the economy suffers
“Without proper investment in skills, people languish on the margins of society, technological progress does not translate into economic growth, and countries can
no longer compete in an increasingly knowledge-based global society”
Andreas Schleicher, OECD, 2012
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The business case – shrinking talent pools
Base population 735,000Base GDP 2012 - £1,541,000mSource: Office for National Statistics
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Diversity is an American import
• Ethnicity• Gender• Disabilities• Sexual orientation
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Diversity is an American import
• Ethnicity• Gender• Disabilities• Sexual orientation
Class
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The heart of the problem
Children's behavioural styles at age 3 are
linked to their adult personality traits at
age 26By Avshalom Caspi, et al, Institute of
Psychiatry, Kings College London & University of Wisconsin-Madison: Journal of Personality,
71(4), 2003, p. 496-513.
Children whose parents earned over
£691 per week had an advantage equivalent to being almost three
months older than those whose parents earned less than £193
per week‘Social Class and Inequalities in Early Cognitive
Scores’, by Alice Sullivan, Sosthenes Ketende and Heather Joshi, was published in the
journal Sociology in April 2013.
Children with professional parents
were more than seven months ahead of their peers whose parents
had manual jobs‘Social Class and Inequalities in Early Cognitive
Scores’, by Alice Sullivan, Sosthenes Ketende and Heather Joshi, was published in the
journal Sociology in April 2013.
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Our industry must start measuring
Source: AGR Summer Survey 2013
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Best practice
• ProgrammesAllen & Overy–Smart Start Summer work experience for 16-17 yr olds from disadvantaged backgrounds now in fifth year – over 500 students–Winner of AGR Social Mobility Award
• MeasurementTeach First–32% of intake 1st generation to university, 23% free school meals or EMA–All applicants asked about their school, free school meals entitlement and first generation at university status
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Best practice
• AGR guide to Social Mobility on www.agr.org.uk
• Diversity Forum for members on 27th Sept – book online
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NEW SOCIAL MOBILITY AWARD
• Define exactly what you mean by Social Mobility within your organisation• State the aims and objectives of your social mobility strategy (with
timescales)• What is the evidence that these have been successfully achieved/partly
achieved and what metrics have you put in place to measure their success now and in the future?
• What is the impact of your social mobility actions to the business now and what do you expect it to be in five years’ time?
• How did you sell your social mobility strategy to the business?• How have you promoted/plan to promote the strategy to potential
applicants? Please give examples
Entry forms available from early October
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THE GLASS CEILING
Polly Toynbee, political and social commentator, The Guardian
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ARE WE GETTING ANYWHERE?
Simon Howard, Chairman, work group
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The graduate jobs market
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SCHOOL
72% of privately educated students get a 2:1+
64% of state educated students get a 2:1+SOCIAL CLASS
70% of grads from the top two social classes get
2:1+
58% of 2:1+ come from top two social classes
Graduate recruitment practices that limit social mobility
1. Degree class
SUMMARYA 2:1 bar favours graduates educated at private schools as well
as those from privileged family backgrounds
Source: RGCC analysis of HESA data
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SCHOOL
62% of privately educated entrants have 360+
Versus only 37% of state school entrantsSOCIAL CLASS
47% of entrants from top two classes gain 360+
Versus 34% of entrants from all other social
classes
Graduate recruitment practices that limit social mobility
2. Tariff points
SUMMARYA levels (UCAS tariff points) are a poor predictor of academic achievement or performance in a career, however they are
reliable markers of class, ethnicity and education background.
Source: RGCC analysis of HESA data
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Graduate recruitment practices that limit social mobility
3. Campus targeting
TOP 30 (T30) Campuses
The 30 campuses most visited by employers –
and consequently the 30 campuses polled for
the Top 100 Employers
SCHOOL
23% of all T30 students are privately educated
Versus only 7% at all other campuses
SOCIAL CLASS
67% of all T30 grads come from the top two
social classes
Compared to 52% at all other campuses
SUMMARYBy targeting your expenditure and presence on High Fliers
campuses, you are addressing a more middle class, more white and more privately educated audience.
Source: RGCC analysis of HESA data
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If you’re serious about social mobility:
Drop the 2:1 bar – not a predictor of job success, it’s discriminatory and is changing campus life for the worse
Drop all reference to UCAS tariff point thresholds – not a proxy for ability, just a marker for exclusion
Drop your fixation with the Top 100 Employers – your budgets are blown on 30 campuses, 91 others are mostly ignored
Of course you won’t – and you shouldn’t
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What might be done?
• Tell the truth: 300,000 graduates chase 24,000 graduate jobs
• Don’t hide the truth – it’s tough joining the elite
• De-gradify – with more ‘doors marked open’ for 16 & 18 year olds
• Better careers guidance
• A consumer-focused education system(i.e. run for the benefit of students, parents and employers, not educationalists, bureaucrats, politicians and unions)
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Odd one out?
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SAVE THE DATE
The next TARGETjobs Breakfast News is Thursday 28 November