30 per cent of university graduates to be out of work after finishing degree

AUSTRALIA: Up to 65,000 university students - 30 per cent of graduates - will be jobless four months after finishing their studies, and those finding employment will be earning less, the federal government has forecast.
The predicted major downturn in graduate employment will occur at the same time student debts are expected to soar with the deregulation of university fees and an increased interest rate applied to student loans.
Preliminary estimates also indicate that the amount of student debt owed to the government, which will never be repaid, could jump to $3 billion a year under the new rules.
Tim Higgins, a senior lecturer in actuarial studies at the ANU, said fee deregulation raised concerns about future budget blowouts as students load up on debt. ''There are no incentives for universities to manage the risk of loan non-payment because the government pays the shortfall,'' Dr Higgins said.
The budget papers show only 70 per cent of higher education graduates are expected to have a full-time job within four months of finishing a degree in 2016-17 - down from the 78 per cent predicted a year ago. This means 64,800 new graduates will be out of work, 17,000 more than predicted in last year's budget.
Graduate salaries are also expected to fall.
Starting salaries for higher education graduates, as a proportion of average male weekly earnings, are forecast to fall from 78 per cent this year to 74 per cent in 2016-17.

- Read More: smh.com.au