HC Deb 18 May 1972 vol 837 cc683-5
Ql. Mr. Dalyell

asked the Prime Minister if he will give the figures of graduate engineers taken on by business firms in 1970, 1971 and 1972; and if he will make a statement on the reasons for the changes in the figures.

The Prime Minister (Mr. Edward Heath)

I will, with permission, circulate the detailed information in the OFFICIAL REPORT.

The best figures available are those collected by the University Grants Committee on the basis of inquiries sent to new graduates. They show that the proportion of graduates in engineering and technology entering industry and commerce has been declining since 1968, the earliest year for which figures are available. The main cause is the relatively low level of investment and demand in recent years, which our economic measures have been designed to correct. I believe that the fall in unemployment announced at midday today shows that these measures are beginning to prove effective.

Mr. Dalyell

Do not these same UGC figures show that between 1970 and 1971 there was an increase in unemployment in graduates in the applied sciences from 2.9 per cent. to 6.7 per cent.? In these circumstances how is the Budget designed to help the science-based industries?

The Prime Minister

As far as the figures are concerned, at the end of 1971 according to the UGC 3.9 per cent. of that year's graduates were still seeking jobs. That figure does not correspond with those given by the hon. Gentleman.

The measures for reflation are, of course, designed to bring about greater investment; and it is natural that in concerns which are engaged in providing heavy and sophisticated equipment for investment more graduates should be employed. This is the expected impact of the Government's measures.

Mr. Tom King

Is my right hon. Friend aware that the United Kingdom is not alone in this problem of graduate unemployment and that it is particularly acute in the United States? Is he further aware that when the Secretary of State for Trade and Industry goes to Japan, which is one of our major industrial competitors, he will find that a considerable number of Japanese companies have cancelled their total graduate recruitment in the past year?

The Prime Minister

My hon. Friend is right. This problem is not limited to this country. However, as I have told the House before, there are measures which can be taken to improve the situation. One is to persuade firms that they should in any case employ a higher proportion of graduates, a point which I put to the CBI last Tuesday. Another possibility is to persuade firms to do what we in the Government service are doing, which is to give scientists and engineers wider opportunities of employment, particularly on the administrative side.

Mr. Harold Wilson

When circulating the figures in the OFFICIAL REPORT, will the Prime Minister make clear what he means by 1969–70 or 1970–71? Does he mean the academic year September to June or the end of the year, so allowing a reasonable period after graduation for placement? Will he make that clear in the statement which he proposes to circulate in HANSARD?

A point arises as a result of previous exchanges in the House. May I ask the right hon. Gentleman whether he has yet been able to get any evidence about the difficulties or fears of difficulties by technological universities in regard to being able to find places in industry for their sandwich courses, whether for sponsored students or students they place themselves?

The Prime Minister

I shall be making that clear in the statement which I propose to circulate in the OFFICIAL REPORT.

GRADUATES IN ENGINEERING AND TECHNOLOGY
Academic Year
1967–68 1968–69 1969–70 1970–71
1. Total graduating … 9,269 9,435 10,480 10,976
2. of which entered home employment … 5,514 5,305 5,740 5,578
3. of which entered industry and commerce … 4,789* 4,544 4,760 4,302
4. Line 3 as a percentage of Line 1 … 51.7 % 48.2 % 45.4 % 39.2 %

Source: UGC, First Employment of University Graduates.

The figures are based on inquiries made towards the end of each year in respect of those graduating at the end of the preceding academic year. Figures for the academic year 1971–72 are not yet available.

* An adjustment has been made to the UGC published figures in order to bring in the Post Office