Graduate debt risk could grow with unemployment

26/01/2010

Graduate debt could continue to mount if Britain is unable to provide jobs for its young people.

Richard Lambert, the director-general of the Confederation of British Industry, has warned that it is vital that the UK economy returns to growth soon in order to reduce unemployment.

Mr Lambert highlighted the difficulties that would come without growth, noting that the young generation would find it especially hard to find work.

He said: "Without growth, unemployment will not fall back to its pre-crisis levels, and the life chances of a generation of young people will be seriously impaired."

Mr Lambert added that private sector employment would play a particularly important role in the recovery as government spending and budgets were already too stretched to provide many more public sector jobs.

The growing risk of prolonged graduate debt has been an ever increasing problem, with a ten per cent increase in graduate unemployment in 2009 when compared to the previous year.

Director of EuroDebt Kevin Still commented: "If the threatened increases in University fees being passed on to students and their parents come about then there is a threat of many not going to University at all and potentially creating more youth unemployment.

"The debt burden of going to University without the certainty of early subsequent employment is likely to add an additional financial pressure to new graduates. Many do not clear debts until well into their thirties."

Tags; Recent Graduate Debt,

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