20231113

London Is Cutting Off Poorer Graduates From Best Jobs, IFS Says

More than four in 10 university graduates living outside London are doing jobs that do not require a degree, according to new research that lays bare a growing divide in the economic geography of the UK.

The analysis by the Institute for Fiscal Studies shows how an increasing concentration of high-skilled jobs in London is damaging the life chances of those who cannot afford to live in the British capital.

“The rise in high-skilled professional services jobs in the last 30 years has been very much focused on London, which means that graduates from other places need to move to reap the returns to their education,” said Xiaowei Xu, a senior research economist at IFS. “This is often not an option for those from poorer family backgrounds.”

“The current economic geography of the UK limits both social mobility and the effective use of talent across the country.”

The struggle to relocate to London for work also helps to explain the labor shortages that are holding back the British economy. Many sectors still have more vacancies than suitable candidates to fill them.

EK: Expensive housing is a problem anywhere… Hence, a low fertility, a slower economic growth, etc.