The many ways the system is failing graduates like me
Graduates are facing a two-pronged attack from a shrinking jobs market and an expanding welfare state that actively incentivises us to live off benefits, says Oliver Dean
In recent weeks, the graduate crisis has garnered significant attention. As someone set to graduate this summer, I am in the same boat as hundreds of thousands of others. As I trawl through LinkedIn ‘easy apply,’ sending off hundreds of applications every day, I have come to terms with the reality of the situation. That the system is fundamentally broken beyond repair – and we as young people are being left on the side of the road as a result.
From the outside, the idea of graduating may seem exciting. Whilst I will no longer be able to justify going to the student bar in the early hours of the afternoon, I will be able to venture onto greener pastures in the so-called ‘real-world.’ Indeed, many may assume that I will be feeling optimistic about my future prospects. A well regarded university to my name, good grades and relevant work experience – I appear to have everything that I could possibly need.
However, this is not enough. With the number of students graduating each year rapidly increasing, coupled with an ever-shrinking job market, many graduates are simply not able to find work. With youth unemployment hitting its highest level in over a decade of 16.1 per cent, and with graduates, and with hiring rates reducing by 8 per cent, many wonder what the purpose of going to university is anymore.
The first issue to tackle is the sheer number of students in higher education. More students than ever before are attending university. In 2020/21, the number of students studying an undergraduate degree at a higher education institution was 1,847,665. In 2022/23, this had jumped to 1,888,375 and by 2024/25 this had soared to 1,920,575. With so many students preparing to enter the world of work, one would hope that the graduate job market would be, for lack of a better term, accommodating.
Choosing welfare
But, this is not the case. According to statistics released by the ONS in December 2025, the total number of estimated job vacancies had reduced by 99,000 – or 18 per cent – with the total number of applications per role increasing by 65 per cent. True, some firms report receiving more than 280 applications per role, a 124 per cent increase from 2022.
With such poor outcomes, many have begun to feel that they have been sold a lie about university. Too often, young people are told that a strong degree will be the ‘X factor’ in determining whether they land a well-paid job or not. That if they work hard and study for three years, then they shall enter the job market with ease. Yet, this is not the case for hundreds of thousands of young people across the country.
As a result of this systemic failure, graduates are turning to the welfare state – not as a safety net, but as a lifestyle
As a result of this systemic failure, graduates are turning to the welfare state – not as a safety net, but as a lifestyle – hoping that the arms of the government may provide them with comfort.
This has gotten especially worse since Covid. In January 2026, for instance, the Centre for Social Justice reported that more than 700,000 university graduates were seeking welfare benefits of some kind. Such a figure represents a 46 per cent jump from 2019. Of these students, approximately 400,000 were claiming universal credit, and 240,000 were not working due to sickness – yet another jump from 2019’s figure of 117,000.
What is evident, therefore, is that the failure of the system is two pronged. Not only are graduates staring down the barrel of an overly competitive job market, but the system has developed in a way that effectively forces them into the welfare state. Under the current system, hard work and academic rigour are not incentivised. Instead of students completing their degree and waltzing into a decently paid job, they are instead tossed to the side, forced to live off of state handouts.
The graduate job crisis thus raises an important question. What does it say about modern Britain when young people are told that university is the secret to success, only to graduate with a mountain of debt, a shrinking job market, and a welfare system that has its arms wide open – desperate to kill off any ambition that may be left over? The British state is failing to convert its talent into productivity, and in doing so failing millions of young people. It must make amends for its failures. It must change.
Oliver Dean is a political commentator with Young Voices UK. He studies History and Politics at the London School of Economics and Political Science (LSE) where he is the President of the LSE Hayek Society