Are apprenticeships becoming the new degree?
A massive shock is coming to the university system, and we're not convinced universities fully realise this yet. What's more, there are signs it has already started.
UCAS revealed a stat that university applications are falling - with 23,000 vacancies for this academic year. Nationally, 'only' 41.9% of 18 year olds in the UK applied to university, falling from 42.1% last year and 44.1% in 2022. This is a huge issue - not only are universities struggling to cover costs as it is, but they are now seeing demand drop at what could be a rapid rate if they don't act fast...
Why are university applications falling?
Some reasons are obvious, some aren't.
BecomingX has the privilege of delivering early careers training for some of the world's top companies and can see first hand what is happening. Young people are getting wise to the fact that they can forgo the £45k average student debt by getting an apprenticeship at a top company like Deloitte, Accenture, Amazon (who collectively recruit thousands of apprentices)... where they get far more real world training and experience, get paid a good wage, and get a degree/qualifications... and then of course end up managing the graduates coming out of university given they have 3-4 years more experience.
We hear from the young people we train (both in school, university and as new joiners) that in just a few days of training with us and our clients, the practical skills they develop vastly surpass what they have previously learned. 'I've learned more in three days here, than I have in three years at uni' was something a new joiner recently told us. The best companies are now showcasing the real skills, knowledge, attitudes and relationships that young people need to succeed at work. In turn, young people are now waking up to the fact they simply can't get these skills in the university system (at least for now).
The impact of corporate apprenticeships
So far, the discussion about declining university applications is largely focused on the ever increasing cost of debt and the inability to get a job. However, the real shock to universities is coming as top companies are now starting to actively recruit young people directly from school, showcasing the training they will receive and promoting the exceptional experiences they could have as an apprentice. These companies have bigger marketing budgets, more targeted marketing and an 'offer' that for many students will be much more attractive. Any 'stigma' associated with apprenticeships is largely consigned to history - on average, apprentices at 21 are more skilled, have far more real experience, have a professional network, earn significantly more and aren't worrying about getting a job and paying off a debt for the next 26 years (the forecast average repayment period). The result? Apprenticeship starts grew by 7% in the first quarter of 2024 compared with 2023.
What can universities do to stop the decline?
If universities want to help stem the significant drop in admissions over the next few years, we think they are going to have to radically refocus on providing the professional skills that the best companies are now offering school students. They need to see this as a competitive market to build real world business skills. A competition that most universities aren't even close to being able to win at the moment.
If you are a company looking to develop hiring and training programmes for young people, or a university looking to build a real professional skills programme - get in touch with us.
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