More than half of UK students considering dropping out as mental health plummets

University degrees lose value with employers

• 55% of students are considering dropping out of their courses, while 63% say their mental health and wellbeing worsened since the start of the academic year

• Three in 10 businesses say a job candidate’s degree doesn’t matter at all, while 56% say that it is generally not important

• However UCAS data reveals university applications have risen

More than half of UK students were considering dropping out this academic year, while two thirds have suffered a decline in mental health, a new study has found, alongside the fact that 56% of companies do not consider a degree important when recruiting.

The research by money transfer service RationalFX found that student mental health is declining, with a recent ONS survey revealing that 63% of students said their mental wellbeing had worsened since the start of the academic year in September 2020. Furthermore, 55% of students say they are considering dropping out of their courses.

In addition, new graduates will encounter a job market where 30% of business owners say a degree is not important at all when recruiting, while a further 26% rate the qualification as not very important, according to a poll by YouGov.

Despite this, the numbers for university applications this year have risen. New data from UCAS reveals that there have been 10% more applications for this Autumn, rising from 281,000 last year to a record 311,000, with 44% of school leavers applying for university places.

Commenting on the study, a spokesperson for RationalFX said: “Choosing whether to study for a degree has always been a big decision, but the impact of the pandemic has probably made it even more significant.

“For the majority of employers, a degree is far from essential, and for many students the last academic year has been very difficult. And with the cost of attending university higher than ever before, it is certainly not a decision to be taken lightly.”

Only 14% of businesses say a degree is very important while one in four consider it somewhat important. Larger businesses are more likely to consider a degree valuable when hiring a new employee, with 56% saying that it is important, compared to one in five small businesses.

The employment sector that places the greatest importance on degrees during the hiring process is Legal, with IT & Telecoms coming in second.

Finance and Accounting comes in third, followed by Media & Marketing, Manufacturing and Construction.

Marketing is split with 47% of businesses believing a degree is important, and 50% saying it is not. The sector that places the least importance on having a degree is hospitality and leisure.

Younger business owners are much more likely to value a degree, with 23% of those aged under 35 rating one as very important, compared to just 8% of UK business owners aged 55 and over.

Businesses in London are more likely to value a degree when they are looking for new hires, with 62% considering it at least somewhat important, while nearly of half of businesses in Wales (46%) say the qualification is not important at all.

The analysis was conducted by RationalFX, which is one of Europe’s leading international payment providers. Its competitive exchange rates, market expertise, suite of FX products and online payment platform enable bank transfers in more than 50 currencies worldwide.

Employment Sector and their opinion on the importance of a degree for a new hire
Sector	Very important	Somewhat important	Not important at all
Legal	40	26	11
IT & Telecoms	19	39	17
Finance and Accounting	21	33	18
Media/Marketing/advertising/ PR & Sales	18	29	23
Manufacturing	13	25	31
Construction	11	25	40
Retail	14	16	35
Hospitality and Leisure	6	13	48

UK businesses and their opinion on the importance of a degree, split by region
Region	Very important	Somewhat important	Not important at all
London	27	35	17
Southeast	7	25	29
Southwest	7	24	37
Wales	11	13	46
Scotland	14	19	36
North	6	22	39
Midlands	15	21	28