University = fears about the future?

Unemployment among graduates has risen. This is causing anxiety for many students. How serious is the situation really? In an article for the campus magazine, economist Prof. Andreas Knabe analyses the latest figures, explains the causes and explains why students shouldn’t let themselves get worked up, despite these difficult times.

Many media outlets are currently reporting on rising figures for unemployed graduates. How do you interpret this trend?

First of all, it should be noted that the overall unemployment rate has risen, and with it that of graduates. If you compare the current figures with those from 2022 – that is, the period when the labour market was in very good shape following the COVID-19 pandemic – this rise is clearly visible. For graduates, the unemployment rate stood at around 2.2 per cent in 2022, and most recently at 2.9 per cent. At first glance, that doesn’t sound like very much. By way of comparison: the general unemployment rate rose from 5.3 to 6.3 per cent over the same period.

The causes lie in the general economic situation: the energy price crisis, uncertainties caused by international conflicts, US tariff policy and other factors. Added to this is demographic change. Companies are increasingly asking themselves whether investing in Germany is worthwhile in the long term. When they are uncertain, they invest more cautiously – and then new jobs are also lacking. Nevertheless, the fact remains that we are still talking about a very low level of unemployment among graduates. With unemployment at around three per cent, one can essentially still speak of full employment.

Does that also mean that starting a career has become more difficult?

Yes, you could say that. Companies usually do not initially respond to uncertainty with redundancies, but rather by creating fewer new roles or by not filling vacancies for the time being. This is precisely what affects those starting their careers the most. The number of vacancies has also fallen significantly: from around two million in 2022 to about one million. For young graduates, this means it takes longer to get started. In 2022, graduates under 25 took an average of just under 60 days to find their first job. By 2025, this had risen to a good 80 days – that is, about three weeks longer. This is a sign of the weaker situation in the labour market. At the same time, it must be said that, on average, two and a half months until the first job is still not a dramatically long time.

Are there any groups or fields of study that are particularly affected?

Yes, there are certainly differences. We see particularly low unemployment rates in the public sector, among teachers, in medicine, IT and also in finance. Rates are higher in fields such as marketing and advertising, in parts of the humanities, or in roles that are heavily research-oriented and less application-oriented. However, it is important to note that a degree does not automatically commit you to a single profession. This is precisely where its strength lies. Those who are flexible and do not focus solely on a very narrow field of work usually have significantly better prospects.

International students are well represented at the University of Magdeburg, particularly in technical subjects. Is their situation currently more difficult when it comes to starting their careers?

Yes, that is certainly true. International students are often more severely affected by a weaker labour market. When companies are more cautious about hiring and offer fewer internships or entry-level positions, the requirements increase – for example, in terms of language skills, practical experience or existing networks. This is precisely where international students often face additional hurdles. At the same time, however, the qualifications of international students remain in demand. There is a particularly high demand for well-trained specialists in technical and scientific fields.

It is therefore crucial to facilitate the transition into the labour market – for example, through a greater practical focus in degree programmes, targeted support in acquiring language skills and better networking with companies. Current initiatives at our university are also moving in this direction; for example, they specifically connect international students with alumni and regional companies and support them as they enter the workforce. Such schemes can also help, even in a difficult labour market situation, to bridge information gaps, establish contacts and facilitate entry into the regional labour market.

So does a university degree still count as a secure foundation for the labour market?

There are never any guarantees in life. But if you ask which qualification offers the best job prospects, it is still the university degree. The unemployment rate among university graduates currently stands at 2.9 per cent. It is higher for people with vocational training, and for those without a vocational qualification it is even over 20 per cent. This shows very clearly that a university degree still offers the greatest job security.

What does a difficult job market mean for young graduates?

In the short term, it can be stressful. Unemployment, or even just the job-seeking phase, affects one’s well-being. Studies show that unemployment is one of the most stressful negative life experiences. For those starting their careers, however, the situation is somewhat different from that of people who lose their jobs later in life. After completing one’s studies, a period of job-seeking is, in a sense, to be expected. That is why it is usually less stressful than losing a job in the middle of one’s career. In the long term, however, it is clear that those who enter the workforce during an economic downturn often take a little longer to find their first job and are more likely to start on a lower entry-level salary. Such differences can have an impact for many years – in some cases for ten to 15 years. However, these consequences are less pronounced among graduates than in other groups.

So are the concerns of many students justified?

The concerns are understandable, but from a scientific point of view there is no cause for alarm. You shouldn’t burden yourself with constant fears about the future whilst you’re still studying. All the statistics show that a university degree still gives you the best prospects on the job market. Even during economic downturns, on average it doesn’t take an age to find your first job. And don’t forget: many people start looking for work whilst they’re still studying, and many don’t even register as unemployed in the first place. That doesn’t fully show up in the figures either.

How does Germany compare with the rest of Europe?

Germany fares relatively well in a European comparison when it comes to youth unemployment. In countries such as Spain or Italy, the situation is significantly more difficult. There, securing stable employment is often much harder than here. This also has to do with the structure of the labour market. In some countries, job security is very high for those who already have a permanent position – yet at the same time, it is difficult for young people to get a foot in the door at all. In Germany, this rigidity is less pronounced. That is why the prospects for those starting their careers are generally better here.

What can students do whilst they’re still studying to improve their chances?

The most important advice is actually quite simple: study with enthusiasm and diligence. You should enjoy your time at university, but also use it to gain as much specialist knowledge as possible. Good academic performance still helps when starting out. It’s also worth broadening your profile: internships, experience abroad, social engagement or initial insights into the practical side of the profession often make the transition easier. Such experiences demonstrate not only specialist knowledge, but also initiative and personality.

What advice would you personally give to students?

Your time at university shouldn’t be dominated by constant worry about what might happen later on. The objective figures show very clearly: a university degree still puts you in the best position for the future.