Tag: employers

  • Trump can order employers to pay extra H-1B fee, court holds

    Trump can order employers to pay extra H-1B fee, court holds

    Dive Brief:

    • President Donald Trump did not exceed his authority when he issued a Sept. 19 proclamation requiring employers to pay an additional $100,000 before new H-1B visas can be processed, a federal district court judge held Dec. 23 in Chamber of Commerce of the United States of America v. U.S. Department of Homeland Security.
    • President Trump legitimately exercised his broad discretion authorized by the Immigration and Nationality Act to restrict the entry of noncitizens into the U.S., the judge found. Trump found the proclamation was necessary to counter abuse of the H-1B program, which the proclamation asserts is harming American workers and creating a national security threat, he said.
    • The ruling does not discount the contributions H-1B workers are making to the American economy, the judge stressed. But the parties’ debate over how the proclamation will affect employers and the economy is not within the court’s province to decide, so long as it is within the confines of the law, she said.

    Dive Insight:

    The Association of American Universities and the Chamber, a business federation with approximately 300,000 members, sued the Trump Administration in October. It was the first of at least three lawsuits by different groups challenging the proclamation, including California v. Noem, filed mid-December by 20 state attorney generals from mainly Democratic states.

    The litigation focuses on two issues — that President Trump exceeded his delegated authority, or acted “ultra vires,” under the INA and that DHS and the State Department “arbitrarily” implemented the proclamation without following proper notice-and-comment rulemaking under the Administrative Procedure Act.

    The judge ruled against AAU and the Chamber on both claims. The INA’s “exceedingly broad language” gives President Trump the authority to issue the proclamation, which he backed with evidence showing how the H-1B program is being abused, and the proclamation does not contravene the INA’s H-1B scheme, the judge held.

    As for the second issue, DHS and the State Department “plainly do not act ‘arbitrarily and capriciously’ or ‘contrary to law’ in implementing a legally permissible presidential directive,” the judge wrote. “Indeed, defendants here had no other course of action” because agencies “‘may not simply disregard’ a binding presidential directive,” she said.

    AAU and the Chamber filed a notice of appeal on Dec. 29.

    Following the ruling, the Chamber posted a statement by Executive Vice President and Chief Counsel Daryl Joseffer that said, “The $100,000 fee makes H-1B visas cost prohibitive for businesses, especially small- and medium-sized businesses that can least afford it. We are disappointed in the court’s decision and are considering further legal options to ensure that the H-1B visa program can operate as Congress intended: to enable American businesses of all sizes to access the global talent they need to grow their operations.”

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  • 7 in 10 employers have high confidence in higher ed, survey finds

    7 in 10 employers have high confidence in higher ed, survey finds

    Dive Brief: 

    • Seventy percent of employers nationwide said they have high confidence in higher education, according to a poll released Thursday from the American Association of Colleges and Universities and research firm Morning Consult. 
    • Three-quarters of Republican employers expressed high confidence in higher education, followed by 70% of Democrats and 55% of independents. That finding contrasts with other recent polls, which show Democrats viewing the sector more positively than Republicans. 
    • The survey suggests that employers hold colleges in higher esteem than the general public does. Just 42% of adults said they had high confidence in the higher education sector in a poll earlier this year from Gallup and Lumina Foundation. 

    Dive Insight: 

    The results from AAC&U and Morning Consult contrast sharply with recent surveys that show the public is continuing to question whether higher education is worth the price. In the new poll, nearly three-quarters of surveyed employers, 73%, said they believe a college degree is “definitely” or “somewhat” worth it. 

    Meanwhile, a recent NBC News poll found just one-third of registered voters adults agreed that a four-year degree is “worth the cost because people have a better chance to get a good job and earn more money over their lifetime.” That’s down from 53% of adults who said the same in 2013. 

    The results of the new poll suggest employers want college graduates to have a wide range of skills when they enter the workplace. Applying knowledge to the real world was the No. 1 skill desired, with 95% of employers agreeing that ability is “very” or “somewhat” important. 

    Similar shares of employers also said teamwork, oral and written communication, locating and evaluating information, analyzing and solving complex problems, critical thinking, and ethical judgment and decision-making were important skills. 

    In addition, employers indicated they want college graduates to have skills related to artificial intelligence. 

    More than 9 in 10 of the respondents said AI skills are very or somewhat important. A slightly smaller share, 81%, expressed confidence that colleges are helping students develop those skills.

    Employers indicated they’d be more likely to hire graduates who had hands-on experiences in college. When considering such experiences, employers were most likely to say completing an internship or apprenticeship, as well as holding a leadership role, would make them more likely to consider hiring a candidate. 

    Eight in 10 employers said they’d be very or somewhat more likely to hire someone with those experiences. 

    Around three-quarters of respondents also said they’d be more likely to hire graduates who participated with a community organization, worked with people from different backgrounds, acted as a peer mentor, held either an on- or off-campus job, or undertook research with the help of faculty. 

    Microcredentials are also becoming more popular with employers, with 81% saying they are somewhat or very valuable when making hiring decisions. Nearly half of employers, 47%, consider them as “evidence of proficiency for a technical skill.”

    However, only 22% of employers view them as a substitute for a college degree. 

    According to a report accompanying the survey, the results also suggest that employers “strongly support conditions that foster open dialogue, diverse perspectives, and students’ freedom to learn.”

    Nearly 9 in 10 employers agreed that “all topics should be open for discussion on college campuses.” And a similar share said they would view a degree more favorably if it came “from an institution known for respecting diverse perspectives.” 

    Additionally, a little more than 8 in 10 said they would have a more positive view of a degree from an institution “that was not subject to government restrictions on what students learn and discuss.” 

    The survey was administered online in August to a little over 1,000 employers, whom the survey defined as managers or higher at organizations that employ 25 or more workers. Nearly three-quarters were hiring managers, while the remainder were executives.

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  • Employers Confident in How Higher Ed Is Preparing Students

    Employers Confident in How Higher Ed Is Preparing Students

    Jason Ardan/The Citizens’ Voice/Getty Images

    While fewer than half of Americans have confidence in higher education, new data shows that 85 percent of employers believe colleges and universities are adequately preparing students for the workforce. And they especially value degrees from institutions that emphasize constructive dialogue and disagreement.

    Those are two of the big takeaways from “The Agility Imperative: How Employers View Preparation for an Uncertain Future,” a new report the American Association of Colleges and Universities published Thursday. In the ninth iteration of the report since 2006, the group commissioned Morning Consult to survey 1,030 executives and hiring managers in August about their attitudes toward higher education.

    “This is our strongest case yet that the separation between workforce and civic skills is false,” said Ashley Finley, author of the report and vice president for research at AAC&U. “In the face of a public narrative that questions the value of college education, employers are higher education’s biggest fans. They value the ways in which colleges are preparing students to be nimble and agile for an uncertain future.”

    ‘Avoiding Groupthink’

    According to the survey, 94 percent of employers said it’s equally important for colleges to prepare a skilled and educated workforce and to help students become informed citizens; 92 percent said it’s also important for colleges to create an environment where students of all backgrounds feel supported and to help them engage with and serve their communities. And 96 percent of employers said it’s useful for college graduates to be able to engage in constructive dialogue across disagreement; 80 percent are confident colleges and universities are helping students develop those skills.

    “Employers want people who can grapple with differences of opinion because they know that strengthens the workplace,” Finley said. “Diverse teams are often the most effective because it’s through the process of disagreement that they arrive at better solutions by avoiding groupthink.”

    Those results come at a time of intensified scrutiny and skepticism about the value of higher education from both the general public and policymakers. According to a survey the Pew Research Center published in October, 70 percent of Americans believe higher education is generally “going in the wrong direction,” citing high costs, poor preparation for the job market and lackluster development of students’ critical thinking and problem-solving skills.

    In addition to focusing on career and technical education and using postgraduation earnings as the primary metric of a degree’s value, the Trump administration and its allies in Congress and state legislatures are also policing university curricula and faculty speech. Over the past year, political pressure has led numerous institutions—including Texas A&M University and the University of Oklahoma—to suspend or fire faculty and administrators who made comments that conflict with certain conservative viewpoints on race, gender and other topics.

    But that’s not the type of learning environment most employers, regardless of political affiliation or age, want graduates to come from, according to the report.

    Eighty-five percent of employers—including 90 percent of Democrats, 75 percent of Independents, 83 percent of Republicans, 87 percent of those under age 40 and 74 percent of those over age 50—said they would look more favorably upon a degree from an institution known for respecting diverse perspectives on political, economic and social issues in the curriculum. Additionally, 82 percent of respondents—including 83 percent of Democrats, 78 percent of Independents, 83 percent of Republicans, 85 percent of those under age 40 and 74 percent over age 50—said they would look more favorably upon a degree from an institution that’s not subject to government restrictions on what students learn and discuss.

    The share of employers who strongly agreed with those statements has also increased by several percentage points since 2023, when the previous iteration of the survey asked the same questions.

    “So much of workforce preparedness in the next few decades is going to involve durable skills amid the rapid proliferation of artificial intelligence,” Lynn Pasquerella, president of AAC&U, said. “We need to train individuals who can engage across differences and bring skills, competencies and dispositions computers can’t bring. That involves directly the capacity to engage with others who are different from oneself.”

    In addition to valuing degrees that promote open inquiry, more than three-quarters of employers said they were more likely to hire graduates who participated in applied, hands-on experiences while in college, including internships, holding leadership roles or working on community-based projects. And 81 percent of employers said microcredentials are also valuable when they’re making hiring decisions.

    “Employers are looking for more than just transcripts. They want portfolios and demonstrations of applied skills and competencies,” Pasquerella said. “The more colleges can do to provide a more comprehensive, complete picture of students’ abilities inside and outside the classroom, the more confidence they can create with employers.”

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  • Feds launch site for employers to pay controversial H-1B fee, clarify exemptions

    Feds launch site for employers to pay controversial H-1B fee, clarify exemptions

    Dive Brief:

    • The U.S. Treasury Department launched an online payment website for employers to pay President Donald Trump’s $100,000 fee on new H-1B visa petitions, according to an update last week from the U.S. Citizenship and Immigration Services.
    • USCIS said the fee applies to new H-1B petitions filed on or after Sept. 21 on behalf of beneficiaries who are outside the U.S. and do not have a valid H-1B visa, or whose petitions request consular notification, port of entry notification or pre-flight inspection. Payment must be made prior to filing a petition with USCIS, per the agency.
    • Separately, USCIS’ update clarified that the fee requirement does not apply to petitions requesting an amendment, change of status or extension of stay for noncitizens who are inside the U.S., if that request is granted by USCIS. If it is not granted, then the fee applies.

    Dive Insight:

    Trump’s proclamation announcing the H-1B fee left employers with plenty of unanswered questions. While Monday’s update provides some clarity, the policy’s future is still uncertain in part because business groups, employers, unions, lawmakers and other stakeholders oppose it.

    At least two lawsuits have been filed seeking to enjoin the fee proclamation — one by the U.S. Chamber of Commerce in Washington, D.C., and another by a group of plaintiffs in California. Both similarly alleged that the H-1B fee violates the constitutional separation of powers as well as the Administrative Procedure Act. The complaints also warned of negative effects on U.S. employers that depend on the H-1B program to attract skilled foreign workers.

    In a letter to Trump and Secretary of Commerce Howard Lutnick, a bipartisan group of congressional lawmakers agreed to the need for reform of the H-1B program while expressing concerns about the potential effects of the fee on U.S. employers’ ability to compete with their global counterparts for talent.

    “The recently announced H-1B visa changes will undermine the efforts of the very catalysts of our innovation economy — startups and small technology firms — that cannot absorb costs at the same level as larger firms,” the lawmakers wrote.

    Trump and the White House have said the fee is necessary to combat “systemic abuse” of the H-1B program by employers that seek to artificially suppress wages at the cost of reduced job opportunities for U.S. citizens. In addition to the fee imposed on new visa petitions, the administration issued a proposed rule to change its selection process for H-1B visas to be weighted in favor of higher-paying offers.

    USCIS’ guidance noted that the Secretary of Homeland Security may grant other exceptions to the H-1B fee in “extraordinarily rare” circumstances where:

    • A beneficiary’s presence is in the national interest.
    • No American worker is available to fill the role.
    • The beneficiary does not pose a threat to U.S. security or welfare.
    • Requiring payment from the employer would significantly undermine U.S. interests.

    The agency provided an email address to which employers could send requests for fee exemption along with supporting evidence.

    Employers planning to file for new H-1B visas should plan to pay the fee unless litigation results in some kind of change, Akshat Divatia, attorney at law firm Harris Sliwoski, wrote in an article Tuesday. Divatia noted that some of the criteria for exemptions outlined by USCIS may conflict with congressional design of the H-1B program, and that employers “should watch closely how the courts respond” to such arguments.

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  • Feds launch site for employers to pay controversial H-1B fee, clarify exemptions

    Feds launch site for employers to pay controversial H-1B fee, clarify exemptions

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    Dive Brief:

    • The U.S. Treasury Department launched an online payment website for employers to pay President Donald Trump’s $100,000 fee on new H-1B visa petitions, according to an update Monday from the U.S. Citizenship and Immigration Services.
    • USCIS said the fee applies to new H-1B petitions filed on or after Sept. 21 on behalf of beneficiaries who are outside the U.S. and do not have a valid H-1B visa, or whose petitions request consular notification, port of entry notification or pre-flight inspection. Payment must be made prior to filing a petition with USCIS, per the agency.
    • Separately, USCIS’ update clarified that the fee requirement does not apply to petitions requesting an amendment, change of status or extension of stay for noncitizens who are inside the U.S., if that request is granted by USCIS. If it is not granted, then the fee applies.

    Dive Insight:

    Trump’s proclamation announcing the H-1B fee left employers with plenty of unanswered questions. While Monday’s update provides some clarity, the policy’s future is still uncertain in part because business groups, employers, unions, lawmakers and other stakeholders oppose it.

    At least two lawsuits have been filed seeking to enjoin the fee proclamation — one by the U.S. Chamber of Commerce in Washington, D.C., and another by a group of plaintiffs in California. Both similarly alleged that the H-1B fee violates the constitutional separation of powers as well as the Administrative Procedure Act. The complaints also warned of negative effects on U.S. employers that depend on the H-1B program to attract skilled foreign workers.

    In a letter to Trump and Secretary of Commerce Howard Lutnick, a bipartisan group of congressional lawmakers agreed to the need for reform of the H-1B program while expressing concerns about the potential effects of the fee on U.S. employers’ ability to compete with their global counterparts for talent.

    “The recently announced H-1B visa changes will undermine the efforts of the very catalysts of our innovation economy — startups and small technology firms — that cannot absorb costs at the same level as larger firms,” the lawmakers wrote.

    Trump and the White House have said the fee is necessary to combat “systemic abuse” of the H-1B program by employers that seek to artificially suppress wages at the cost of reduced job opportunities for U.S. citizens. In addition to the fee imposed on new visa petitions, the administration issued a proposed rule to change its selection process for H-1B visas to be weighted in favor of higher-paying offers.

    USCIS’ guidance noted that the Secretary of Homeland Security may grant other exceptions to the H-1B fee in “extraordinarily rare” circumstances where:

    • A beneficiary’s presence is in the national interest.
    • No American worker is available to fill the role.
    • The beneficiary does not pose a threat to U.S. security or welfare.
    • Requiring payment from the employer would significantly undermine U.S. interests.

    The agency provided an email address to which employers could send requests for fee exemption along with supporting evidence.

    Employers planning to file for new H-1B visas should plan to pay the fee unless litigation results in some kind of change, Akshat Divatia, attorney at law firm Harris Sliwoski, wrote in an article Tuesday. Divatia noted that some of the criteria for exemptions outlined by USCIS may conflict with congressional design of the H-1B program, and that employers “should watch closely how the courts respond” to such arguments.

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  • Higher Education must help shape how students learn, lead and build the skills employers want most

    Higher Education must help shape how students learn, lead and build the skills employers want most

    For the first time in more than a decade, confidence in the nation’s colleges and universities is rising. Forty-two percent of Americans now say they have “a great deal” or “quite a lot” of confidence in higher education, up from 36 percent last year.  

    It’s a welcome shift, but it’s certainly not time for institutions to take a victory lap. 

    For years, persistent concerns about rising tuition, student debt and an uncertain job market have led many to question whether college was still worth the cost. Headlines have routinely spotlighted graduates who are underemployed, overwhelmed or unsure how to translate their degrees into careers.  

    With the rapid rise of AI reshaping entry-level hiring, those doubts are only going to intensify. Politicians, pundits and anxious parents are already asking: Why aren’t students better prepared for the real world?  

    But the conversation is broken, and the framing is far too simplistic. The real question isn’t whether college prepares students for careers. It’s how. And the “how” is more complex, personal and misunderstood than most people realize.  

    Related: Interested in innovations in higher education? Subscribe to our free biweekly higher education newsletter. 

    What’s missing from this conversation is a clearer understanding of where career preparation actually happens. It’s not confined to the classroom or the career center. It unfolds in the everyday often overlooked experiences that shape how students learn, lead and build confidence.  

    While earning a degree is important, it’s not enough. Students need a better map for navigating college. They need to know from day one that half the value of their experience will come from what they do outside the classroom.  

    To rebuild America’s trust, colleges must point beyond course catalogs and job placement rates. They need to understand how students actually spend their time in college. And they need to understand what those experiences teach them. 

    Ask someone thriving in their career which part of college most shaped their success, and their answer might surprise you. (I had this experience recently at a dinner with a dozen impressive philanthropic, tech and advocacy leaders.) You might expect them to name a major, a key class or an internship. But they’re more likely to mention running the student newspaper, leading a sorority, conducting undergraduate research, serving in student government or joining the debate team.  

    Such activities aren’t extracurriculars. They are career-curriculars. They’re the proving grounds where students build real-world skills, grow professional networks and gain confidence to navigate complexity. But most people don’t discuss these experiences until they’re asked about them.  

    Over time, institutions have created a false divide. The classroom is seen as the domain of learning, and career services is seen as the domain of workforce preparation. But this overlooks an important part of the undergraduate experience: everything in between.  

    The vast middle of campus life — clubs, competitions, mentorship, leadership roles, part-time jobs and collaborative projects — is where learning becomes doing. It’s where students take risks, test ideas and develop the communication, teamwork and problem-solving skills that employers need.  

    This oversight has made career services a stand-in for something much bigger. Career services should serve as an essential safety net for students who didn’t or couldn’t fully engage in campus life, but not as the launchpad we often imagine it to be. 

    Related: OPINION: College is worth it for most students, but its benefits are not equitable 

    We also need to confront a harder truth: Many students enter college assuming success after college is a given. Students are often told that going to college leads to success. They are rarely told, however, what that journey actually requires. They believe knowledge will be poured into them and that jobs will magically appear once the diploma is in hand. And for good reason, we’ve told them as much. 

    But college isn’t a vending machine. You can’t insert tuition and expect a job to roll out. Instead, it’s a platform, a laboratory and a proving ground. It requires students to extract value through effort, initiative and exploration, especially outside the classroom.  

    The credential matters, but it’s not the whole story. A degree can open doors, but it won’t define a career. It’s the skills students build, the relationships they form and the challenges they take on along the way to graduation that shape their future. 

    As more college leaders rightfully focus on the college-to-career transition, colleges must broadcast that while career services plays a helpful role, students themselves are the primary drivers of their future. But to be clear, colleges bear a grave responsibility here. It’s on us to reinforce the idea that learning occurs everywhere on campus, that the most powerful career preparation comes from doing, not just studying. It’s also on us to address college affordability, so that students have the time to participate in campus life, and to ensure that on-campus jobs are meaningful learning experiences.  

    Higher education can’t afford public confidence to dip again. The value of college isn’t missing. We’re just not looking in the right place. 

    Bridget Burns is the founding CEO of the University Innovation Alliance (UIA), a nationally recognized consortium of 19 public research universities driving student success innovation for nearly 600,000 students. 

    Contact the opinion editor at [email protected]. 

    This story about college experiences was produced by The Hechinger Report, a nonprofit, independent news organization focused on inequality and innovation in education. Sign up for Hechinger’s weekly newsletter. 

    The Hechinger Report provides in-depth, fact-based, unbiased reporting on education that is free to all readers. But that doesn’t mean it’s free to produce. Our work keeps educators and the public informed about pressing issues at schools and on campuses throughout the country. We tell the whole story, even when the details are inconvenient. Help us keep doing that.

    Join us today.

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  • Employers Value Postsecondary Credentials, Durable Skills

    Employers Value Postsecondary Credentials, Durable Skills

    Public perceptions of college have been declining over the past decade, but the role of postsecondary education as a training ground for the workforce remains clear, according to employer surveys.

    Recently published data from the U.S. Chamber of Commerce and College Board found that a majority of hiring managers say high school students are not prepared to enter the workforce (84 percent) and that they are less prepared for work than previous generations (80 percent).

    Similarly, a survey from DeVry University found that 69 percent of employers say their workers lack the skills they need to be successful over the next five years.

    The trend line highlights where higher education can be responsive to industry needs: providing vital skills education.

    Methodology

    DeVry’s survey, fielded in summer 2025, includes 1,511 American adults between the ages of 21 and 60 who are working or expect to work in the next 12 months, and 533 hiring managers from a variety of industries.

    The Chamber of Commerce report was fielded between May 20 and June 9 and includes responses from 500 hiring managers at companies of all sizes.

    Cengage’s State of Employability includes responses from 865 full-time hiring managers, 698 postsecondary instructors and 971 recent college graduates. The study collected data in June and July.

    Investing in education: Nine in 10 respondents to the Chamber of Commerce’s survey indicated that trade school graduates and four-year college graduates with industry-recognized credentials were prepared to enter the workforce. About three-quarters said college graduates without industry-recognized credentials were prepared for the workforce.

    According to Devry’s data, three-fourths of hiring managers believe postsecondary education will continue to be valuable as the workplace evolves over the next five to 10 years.

    A 2025 report from Cengage Group found that 71 percent of employers require a two- or four-year degree for entry-level positions, up 16 percentage points from the year prior. However, only 67 percent of employers said a degree holds value for an entry-level worker—down from 79 percent last year—and fewer indicated that a college degree remains relevant over the span of a career.

    The Chamber of Commerce’s survey underscored the role of work-based learning in establishing a skilled workforce; just under half of employers said internships are the top way for students to gain early-career skills, followed by trade schools (40 percent) and four-year colleges (37 percent). This echoes a student survey by Strada Education Foundation, in which a majority of respondents indicated paid internships had made them a stronger candidate for their desired role.

    However, fewer than two in five hiring managers said it’s easy to find candidates with the skills (38 percent) or experience (37 percent) they need. In DeVry’s survey, hiring managers identified a lack of skilled workers as a threat to productivity at their company (52 percent), with one in 10 saying they would have to close their business without skilled talent.

    Looking to the future, 80 percent of the hiring managers DeVry surveyed said investing time and money in education is worthwhile in today’s economy; a similar number said education would advance a worker’s professional career as well.

    Needed skills: Nearly all hiring managers said they’re more likely to hire an entry-level employee who demonstrates critical thinking or problem-solving abilities, compared to a candidate without those skills. Ninety percent consider effective communication skills a top quality in an applicant.

    DeVry’s survey showed that skills have impact beyond early career opportunities; 70 percent of employers said durable skills are a deciding factor in promotions, with critical thinking (61 percent), self-leading (50 percent) and interpersonal communication (50 percent) as the top skills needed for the future.

    A majority of educators polled by Cengage said postsecondary institutions should be responsible for teaching industry-specific skills, with 60 percent placing the onus on instructors and 10 percent on campus advisory services or programs. Employer respondents said they expect recent graduates to bring job-specific technical, communication and digital skills to the table when hired.

    The Chamber of Commerce survey underscored a need for early education, with 97 percent of respondents saying high school courses should teach professional career skills. Even so, 87 percent of respondents still believe work experience is more valuable than formal education.

    Do you have a career-focused intervention that might help others promote student success? Tell us about it.

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  • College grad unemployment surges as employers replace new hires with AI (CBS News)

    College grad unemployment surges as employers replace new hires with AI (CBS News)

    The unemployment rate for new college graduates has recently surged. Economists say businesses are now replacing entry-level jobs with artificial intelligence.

     

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  • Employers will increasingly focus on graduates’ skills over technical knowledge

    Employers will increasingly focus on graduates’ skills over technical knowledge

    There are few safe bets about the future, so the impact of technology on labour markets, how transitions through education and into work will change, and the need to reskills and upskill, can only be predicted.

    But we do know that technology – AI in particular – is a disruptive force. We know that declining birth rates and higher employer skills needs have the potential to create a difficult labour market that hinders growth. We also know it’s likely that people who don’t adapt to changes in work could see their careers suffer.

    In response to these shifts, graduate and apprentice employers are considering fresh approaches to their talent strategies. Strategies that will focus less on a person’s age, education and technical experience, and more on their skills, capabilities and aptitudes.

    The Institute of Student Employers (ISE) recent report, From early career to emerging talent, shows that 68 per cent of early career employers have already adopted or partially adopted a skills-based strategy to hiring – and another 29 per cent are considering it.

    A constricted labour market

    Quite rightly, we are all concerned about the tough jobs market facing students, the high volumes of applications they make, and the time it takes many to get a graduate job. Because of the UK’s anaemic growth, the current labour market is tight (ISE predicts graduate vacancies will only grow by one per cent this year). But once growth returns to the economy, it’s likely employers will see significant talent shortages.

    We can see latent labour market problems in the current Labour Market Information (LMI) data. The UK’s unemployment rate at 4.4 per cent is historically low. Only 16.4m people in England and Wales are educated to level 4 or over – yet there are 18.6m jobs currently at that level, rising to 22.7m over the next 10 years. Over the next decade the working age population will increase only by 1.14m people (the over-70s, on the other hand, will increase by 2.1m).

    Mention 2022 and while most remember the heatwave, recruiters remember the post-pandemic growth spurt which left many vacancies unfilled. A CIPD labour market survey from summer of that year reported that 47 per cent of employers had hard-to-fill vacancies and the top response to difficulties reported by employers was to upskill existing staff.

    A problematic word

    What is a skill, an attribute or a capability? What can be taught, learned and developed, and what individual traits are innate? Some skills are technical, some more behavioural. And we’ll all have our own views on the abilities of ourselves and others. So, the word skills is problematic, which makes agreement on what approach we take to skills problematic.

    In their recent Wonkhe articles, Chris Millward and Konstantinos Kollydas and James Coe are right to highlight the challenge of differentiating between knowledge, technical behavioural and cognitive skills. To varying degrees, employers need both. I’d add another challenge, particularly in the UK: the link between what you study and what you do is less pronounced. Over 80 per cent of graduate recruiters do not stipulate a degree discipline. This makes connecting skills development to the labour market problematic.

    Another problem with the use of the word skills is the danger that we take a reductive, overly simplistic view of skills. A student who does a group activity successfully may think they’ve nailed teamworking skills. In reality, working with people involves a multitude of skills that many of us spend our working lives trying to master.

    Employers are already increasing their focus on skills

    In their report The skill-based organisation: a new operating model for work and the workforce, Deloitte describe how organisations are developing “a whole new operating model for work and the workforce that places skills, more than jobs, at the centre.”

    As recruitment for specific expertise becomes more challenging, people are matched to roles based on skills and potential, less on experience in a role. Skills-based hiring strategies encompass career changers, older workers, people who have near-to work experience. Technology maps an organisation’s skills base to create an internal marketplace for roles and employees are encouraged to re-skill and upskill in order to move about the organisation as jobs change.

    Graduates will need the skills and associated mindset to navigate this future world of work. World Economic Forum 2025 Future of Jobs analysis shows that 69 per cent of UK organisations placed resilience, flexibility and agility in the top five skills that will increase in importance by 2030.

    Graduate recruitment strategies could evolve to make less use of education exit points to define the talent pool hired from: career-changers, older-workers, and internal switchers are incorporated into development programmes. More learning content becomes focused on developing behavioural and cognitive skills to promote a more agile cohort.

    Students do develop skills

    Within HE, practitioners have already established a considerable body of knowledge, research and practice on employability skills. Where change is occurring, is in the campus-wide approach to skills that many institutions have developed (or are in the process of developing). Approaches that aim to ensure all students have the opportunity to develop a core set of skills that will enable them to transition through education and into work. Bristol and Kingston, among others, have shown how skills can be embedded right across the curriculum.

    I’m a big fan of Bobby Duffy’s work on delayed adulthood which suggests to me that the average student or graduate in their late teens and early twenties is at quite a different stage of development to previous generations. Which means that it’s wrong-headed to think of deficits in students’ work readiness as the fault of students (or their coddling parents).

    Employers and educators together have a role to play in helping students understand their own skills and how to develop them. Skills require scaffolding. Surfacing skills in the curriculum ensures students understand how their academic work develops core skills.

    And the provision and promotion of extra-curricular activities, including work experience, can be built into the student journey. Programmes where students develop their ability to deal with change and challenging situations, to analyse and solve complex problems, to adopt a positive approach to life-long learning.

    The skills agenda opportunity

    At the ISE we leave the language of skills gaps and employers’ apparent low opinion of graduates to the tabloids. Only 17 per cent of employers in our annual survey say they disagree that graduates are not work-ready. We do ask a more subtle question on the attitudes and behaviours that employers expect early career hires to possess when they start work. The top skills employers thought students weren’t as proficient in as they expected were self-awareness, resilience and personal career management.

    I am not, never have been, and never will be, a policy wonk. Maybe someone who is can design the architecture of incentives and systems that better connect education pathways to labour market needs. This architecture will also have to be able to predict labour market needs four to five years in advance, because that’s the lag between a typical students’ course choice and their job application. But if that can’t be done, surely a good investment is ensuring that students have plenty of opportunities to develop their skills and attributes to deal with an ever more changing workplace.

    Fully embracing a skills approach is a great opportunity to demonstrate how HE adds value to the UK economy through the triangulation of student interests, employer needs and a great education experience.

    Read the ISE’s report, From early talent to emerging talent, for a detailed analysis of the forces impacting how employers will hire and develop students in the future.

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  • Degree Apprenticeships in England: What Can We Learn from the Experiences of Apprentices, Employers, and Education and Training Providers?

    Degree Apprenticeships in England: What Can We Learn from the Experiences of Apprentices, Employers, and Education and Training Providers?

    By Josh Patel, Researcher at the Edge Foundation.

    Degree Apprenticeships (DAs) were launched in 2015, as a novel work-based learning route to obtaining a degree. On their introduction, then Prime Minister David Cameron said they would ‘give people a great head start, combining a full degree with real practical skills gained from work and the financial security of a regular pay packet’. Since then, they have taken the higher education sector by storm. Their growth has been the key factor in the expansion of higher apprenticeships from 43,800 starts in 2015/16 to 273,700 in 2023/24, a rise from 4.8% to 35% of all apprenticeships. They have stimulated innovative models of delivery and new and productive relationships between employers and providers. Former Skills Minister Robert Halfon remarked that ‘Degree Apprenticeships’ were his ‘two favourite words in the English language’.

    DAs have, however, recently come under scrutiny. Concerns persist that the growth of DAs and their high cost – reported in the media as growing from 2% of the apprenticeship budget in 2017/18 to 21% in 2021 – might crowd out opportunities for young entrants to the workforce, as DAs are primarily taken by existing employees. The suitability of DAs as instruments to improve upward social mobility has been contested. Meanwhile, the government is drawing up plans to increase the flexibility of the Apprenticeship Levy through which Degree Apprenticeships can currently be funded, asking employers ‘to rebalance their funding for apprenticeships… to invest in younger workers’.

    Our report, ‘Degree Apprenticeships in England: What Can We Learn from the Experiences of Apprentices, Employers, and Education and Training Providers?’, written in collaboration with colleagues from the Universities of Bath, Huddersfield, and Oxford, was published on Tuesday and is a timely intervention into these discussions. Here, we present the evidence for some our policy recommendations, gathered from nearly 100 interviews with stakeholders including large employers and SMEs, providers, degree apprentices, and policymakers.

    Engaging employers

    The government needs to consider a more systematic approach that serves to rationalise the way that employers are supported to offer a wide range of work-based opportunities. As Edge has identified in other programmes, such as T Levels or plans to provide universal work experience through the government’s Youth Guarantee, DAs are restricted by the number of employers willing to engage. We repeatedly heard evidence of the difficulties ‘resource-poor’ employers had in engaging with the design of apprenticeship standards and participating fully in collaboration with providers. As one SME told us contributing to the design and development of a DA ‘doesn’t give me any benefit now, and I’m impatient’.

    The government needs to develop a coherent strategy for DAs with a particular focus on support for SMEs, including improved awareness of levy transfer schemes. Involvement in DAs is often based on being ‘in the know’ and contacts with providers and local authorities. In our ‘Learning from the past’ stream of work, we reviewed Education Business Partnerships, as an example of intermediary organisations, noting both their strengths and shortcomings, which could inform effective initiatives for supporting employers.

    Reducing complexity

    With the creation of Skills England, the government should take the opportunity to review and simplify the process of design, delivery and quality assurance for DAs, and ensure regulatory elements work together. DAs currently draw in a large number of bodies including the OfS, IfATE, regulatory bodies, professional bodies and Ofsted. Providers told us that this had created a complex landscape of ‘many masters’ where lines of accountability are blurred and innovation is stifled. Providers described ‘overregulation’ as limiting ‘our ability to go off-piste’, and while the process could be constructive, providers were unconvinced of its added value. ‘Does that add to the quality?’ one provider asked. ‘I don’t think it necessarily does’.

    Skills England’s remit includes shaping technical education to respond to skills needs, and its incorporation of IfATE has already begun. As a first exercise, it could review the regulatory requirements to remove any duplication and contradictions and then consult with the sector to devise a simpler, clearer mechanism for providers to report.

    Increasing flexibility

    These difficulties meant that, while we found examples of excellent integration of academic learning and the workplace, concerns persisted as to the vocational relevance and obsolescence of learning, particularly in fast-moving sectors such as IT and mental health provision. One employer involved in delivery said they told their apprentices: ‘we have to teach you this so you get through your apprenticeship, but actually in practice that is not the way it’s done any longer’.

    In other countries, such as the Netherlands, a proportion (up to 20-25%) of an apprenticeship standard is kept flexible to be agreed between the employer and provider so that it can take better account of the current and changing situation in that particular industry, location and employer – such flexibility could be piloted in the UK.

    …without compromise

    The government’s commitment to adapting the levy into a ‘Growth and Skills Levy’, offers opportunities to improve DA delivery. Diversification was not a major consideration for the majority of employers when recruiting, though we certainly did hear evidence from those with a strong sense of their social corporate responsibility. As one SME put it:

    there are too many people in the IT industry that are like me. So we’re talking middle-aged white guys. […] Now, DAs allow people who don’t necessarily, wouldn’t consider getting into this industry from a variety of backgrounds, creeds, colours…

    We recommended in our Flex Without Compromise report that the government should take a measured approach to levy reform to minimise the risk that a broadening of scope diminishes the opportunities available particularly for younger people and newer entrants to the labour market. It should consider modelling the impact of differentiating levy funding available for DAs by either or both age and staff status, and diversification of the workforce. This could be a powerful mechanism to encourage employers to focus DA opportunities on younger people and on new recruits but would need to be considered carefully to allow for continued expansion of DAs.

    These initiatives might help address existing challenges and enhance the efficacy of Degree Apprenticeships in fostering equitable access and meeting the needs of learners and employers.

    To find out more about Edge and to read the report in full, visit www.edge.co.uk

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