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John Denham, Secretary for Innovation, University and Skills, has rekindled the debate on the value of apprenticeships versus university degrees by stating in an interview with the FT that some young people who go to university would be better off on an Advanced Apprenticeship. His comment came following research by Kent University that indicated one in three UK graduates is in non-graduate work and Higher Education Statistics Agency findings that the average unemployment rates for full-time first degree graduates in 2006-7 was 6%, higher than Britain's overall employment rate for the same period.
SummitSkills has recently been examining the starting salaries of graduates and comparing them to the average wages for building services engineering (BSE) apprentices. According to a survey by the Association of Graduate Recruiters, the median graduate starting salary across Britain was £23,500 in July 2007. The survey also showed that, whilst the number of graduate jobs overall was increasing, because of the abundance of graduates competing for each position, pay scales were beginning to fall.
Figures derived from current hourly sector pay rates indicate that a mechanical or electrical engineer who has successfully completed an NVQ Level 3 apprenticeship can expect to earn a basic wage of £20,000 - £22,000, plus overtime. NVQ 3 is generally regarded as equivalent to A level standard of education and salaries can rise quickly over subsequent years with experience and further training, comparing favourably with graduate pay expectations. Bearing in mind that apprentices also earn a wage throughout their training, and do not end up with a hefty student loan to repay, it would indicate that young people need to seriously consider the alternatives to university life.
The education foundation, Edge, has found that, with the benefit of hindsight, a quarter of all students wished they had made different plans, with a tenth believing they should have opted to do an apprenticeship instead. The reason capable young people head straight to university is largely due to the attitude of teachers, careers advisors and parents who have traditionally regarded apprenticeships as less credible career options, despite the fact that successful completion, particularly in the BSE sector, requires a considerable level of aptitude and dedication and can lead to high level qualifications.
John Denham admitted in his interview: "We have been in danger of making it sound as if university is the only real aspiration." As a result, government is aiming to encourage 20% of young people into apprenticeships by 2020; this firmly supports SummitSkills' objective to broaden the awareness of young people and their mentors by showing how varied, intricate and creative BSE work can be, and how defined career paths can lead to high earnings potential.
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Building services engineering companies will be better-placed to weather the recession if they are open-minded to improving their efficiency by receiving expert advice and support with business matters.
