Money has overtaken mental health as young people’s main concern, leading many to change career paths as a result.
The cost-of-living crisis has led money worries to overtake mental health issues as students’ and graduates’ main concern, according to the annual early careers survey by graduate career website Prospects at Jisc.
Salary jumped to second place in respondents’ priorities when looking for a job, behind top priority work-life balance.
Around half have switched career plans, it found, compared to 27% reporting this to be the case in its 2021 survey. Two-fifths of respondents said the cost of living had driven them to reconsider their future job plans.
One respondent said that “the issues with the cost-of-living crisis made me realise that I needed to apply for jobs that paid more”.
There was a marked difference in salary expectations and current average starting salaries, however.
Forty-one per cent of university students in their final year expected a salary of more than £30,000 when they graduated, despite figures from HESA, the higher education statistics agency, showing that the average starting salary is £24,000. One in 10 expected more than £40,000.
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Many young people have a “side hustle” alongside their primary occupation so they can afford the higher cost of living, according to Prospects. Popular choices include selling art or old clothes, tutoring, renting out rooms and photography.
One said: “My primary occupation gives me a relatively low salary, and I know the workplace cannot afford to increase my pay at the moment. This [side hustle] allows me to meet my bills while still keeping my dream job.”
Money worries have also led fewer early-career employees to quit their jobs this year. A third of 2022’s graduates are planning to seek a new role this year, compared to 40% of 2021’s cohort. Where people are leaving, 17% said this was in search of a higher salary.
Many students had abandoned plans for further study or had changed courses due to the costs associated, the survey found. One student said they could no longer afford a Masters so was looking for a work opportunity where they could study alongside or take evening classes.
Similarly, an increasing number of students are seeking out courses that lead to higher-paying jobs, including accounting, IT, cyber security and property studies (all up around 15%). Interest in courses associated with lower-paying roles in the public sector was down by around 20%, it found.
Chris Rea, a careers expert for Prospects at Jisc said the cost of living crisis was “driving important decisions that will affect future career paths”.
“It’s vital young people seek advice from careers experts before making hasty decisions that they may regret further down the line,” he said.
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“As a result of the cost-of-living crisis we may see more shortages in lower paid sectors and fewer entrances to university, particularly postgraduate courses. The labour market is relentlessly tight and employers will need to be competitive with their salaries to win and retain the best talent.”
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