The changing student market Predicting future trends Kim Somerville Director of Marketing & Communications k.somerv

1. The changing student market Predicting future trendsKim SomervilleDirector of Marketing & Communicationsk.somerville@leedstrinity.ac.uk

2. Evolution of students …

3. Introduction • No magic ball but a number of clues! • The past • Future demographics • Government agenda • Changing 14-19 environment

4. A decade of difference – 1990’s • Student Identity • Exclusive Group • Looked / Behaved different from rest of society • Aspirations • Self-improvement • Escape parental home • Uni = An experience • Lifestyle • Lie-ins • Cheap Bars • Lunchtime drinking • Poor = cool • Student grants • Free education • Poverty a rite of passage

5. Student Identity • Widened participation • Changing demographic • Very similar ‘young workers’ A decade of difference – 2000’s • Aspirations • More serious • Get a great job • Uni = means to an end • Lifestyle • Working - part time job • Shopping • Staying in • Living at home with parents • Poor = Miserable • Unable to engage in culture • Loans / Debt • Tuition fees

6. As it was? A time of exploration Establish new friendship groups Introduced to a broad range of new influences New behaviour patterns – drinking, socialising, fashion, politics Leave family home Party animals Time to ‘play’ Having fun is central to the student lifestage Aspirations Less career focussed, going to university a rite of passage As it is Increasingly Students are maintaining links with old friends Institutions are becoming more homogenised Reliant on parents for longer Living at home Financial support Students are studying harder than ever More working in part time jobs Career/grade focussed Then versus now

7. Meet the Students4 New Typologies

8. Comfortable Coaster • 15% of student market • Middle class • Lives in the premium Halls / private house • Parents 100% support lifestyle – no work during term or holidays • Russell group Uni • The coaster doesn’t tend to work too hard • Bright and gets work done with the minimum effort • And they are fairly relaxed because mum and dad will always be on hand to bail them out • The coaster has access to broadband access and laptop and can spend hours a day indulging in what they love be it playing sport or drinking

9. Glamour Debtor • 30% of student market • Typically middle class • Rented accommodation (would rather spend cash on socialising) • Maxed out loans / credit cards and parents pay tuition fees • Russell Group Uni • Living for the moment • ‘If you are £15,000 in debt already you may as well be £16,000 in debt and having fun’ • The glamour debtor revels in their carefree attitude and drinks in the coolest bars and buys the best drinks, wearing the most expensive brands • Aspirations: status-conscious they want to compete with the more wealthy young workers – they want to have the best years of their life, – and worry about it later

10. Newdent • 25% of student market • Typically working class • Lives at home with mum and dad • Works weeknights and weekends for cash – quite debt averse • University / Polyversity / HE College • They are not living what we see as the typical ‘student’ lifestyle • Still have all the same mates from school • Still hanging around in the same places • Friendship group includes many who are working • They themselves very likely to be working part time • Their lifestyle, leisure habits and media consumption identical to workers of the same age • Newdents have to choose the establishment closest to home - yet many spend a lot of time commuting, and this impacts on their ability to socialise • Aspirations: Want to improve situation, to not fall too far behind working mates

11. Studious Stresser • 30% of student market • Lower Middle class • Lives in the cheapest accommodation they can find • Working over 20 hours per week to supplement student loans • Russell Group Uni / Polyversity • Typically second or final year students from lower middle class families • Lack parental support but don’t qualify for any subsidies • Introduction of tuition fees has made life tough • Life is dominated by working hard to achieve grades they need and doing dull jobs such as data entry or working in fast food joint • Not big in or out of home socialisers due to time constraints – but tend to save themselves for the ‘big night out’ • Aspirations: achieve the best grade they can get to be able to treat themselves with a ‘luxury’ item when the latest student loan payment comes in

12. This years Freshers … • Will not know life without the internet or email • Will more than likely have been using a mobile phone throughout their time at school • Will have a virtual learning environment at their school or college • Unite Student Experience Report 2007 http://www.unitegroup.co.uk/data/Reports/Student%20Experience%20Report%202007.pdf

13. Working • 40% of students work whilst studying. They work an average of 14 hours per week, getting paid an average of £7.61 per hour, significantly above the minimum wage. • The pay gap starts early as males earn £1 an hour more than females. • Students find employers supportive and flexible on the whole, making working a pleasant experience and most enjoy work, although recognising it could affect their studies. • Unite Student Experience Report 2007 http://www.unitegroup.co.uk/data/Reports/Student%20Experience%20Report%202007.pdf

14. Finances • 75% of students are in debt • First year students are more concerned about their debt than third years • The percentage taking government loans has dropped • 6% percentage points but the number in debt to banks has increased • Less well off students are increasingly turning to more expensive forms of borrowing, such as credit cards • Weekly spending has remained static over the past two years at £180, down (£12 over the two years when inflation is taken into account) • Students expect to pay off their debts in 7.7 years (£750 per year) • Unite Student Experience Report 2007 http://www.unitegroup.co.uk/data/Reports/Student%20Experience%20Report%202007.pdf

15. The Future

16. An Aging Population • “In 2004, there were just over 0.5 million (5 per cent) more children aged under 16 than people of state pensionable age. • However, from 2007, the population of state pensionable age is projected to exceed the number of children and by 2031 is projected to exceed it by almost 4 million (34 per cent).” • Office for National Statistics • National Statistics 23 October 2007 http://www.statistics.gov.uk/pdfdir/pproj1007.pdf

17. Office for National Statistic Prediction • UK population will increase from 60.6 million in 2006 to reach 71 million by 2031. • The population will gradually become older with the average (mean) age expected to rise from 39.6 years in 2006 to 40.6 years in 2016 and to 42.6 years by 2031. • As the population ages, numbers in the oldest age bands will increase the fastest. • In 2006, there were 4.7 million people in the UK aged 75 and over. The number is projected to increase to 5.5 million by 2016 and to 8.2 million by 2031, a rise of 76 per cent over twenty-five years. • National Statistics 23 October 2007 http://www.statistics.gov.uk/pdfdir/pproj1007.pdf

18. Aging Population … Does it matter? • Important to consider projections of the young population of the UK • Young people aged 18–20 are the major source of demand for full-time higher education at undergraduate level • 44% of the first year UK-domiciled students in full-time undergraduate higher education in the UK are aged 18 • 21% aged 19 • 7% aged 20 • In total these make up 71% of first year full-time UK domiciled undergraduate students

19. A Regional View • The region’s population will grow by 9% over the 25 year projection horizon. • The number of people in the 15-19 age band will decrease by 11.1% - 39,000. • There will also be a decrease in those aged between 20 and 24 (-1.4%). • There are massive increases predicted in the ‘retirement’ age bands of 60-64 (38.6%) and 65-69 (44%). • The proportion of people from Ethnic Minority groups will expand from 8.7% to 12.2%. • Yorkshire Futures/Leeds University School of Geography http://www.yorkshirefutures.com/siteassets/documents/YorkshireFutures/3/9/390F5D3F-E067-4872-8C5C-AB95E8F47FB7/Yorkshire%20&%20The%20Humber%20Population%20Projections.pdf

20. Headline Trends in Higher Education Universities UK http://bookshop.universitiesuk.ac.uk/downloads/size_and_shape.pdf

21. Headline Trends in Higher Education Universities UK http://bookshop.universitiesuk.ac.uk/downloads/size_and_shape.pdf

22. Government Agenda • 1997 Dearing Report - A vision for 20 years: the learning society – significant change in funding. • 2006 Leitch Review of Skills - Recommendation is to exceed 40% of the adult population with Level 4 or above skills, widening the drive to improve the UK’s high skills to encompass the whole working-age population. • Changing the targets away from the sole focus on young people aged 18-30 will transform the incentives of HE providers to work with employers, delivering a step change in liaison between employers and higher education institutions.

23. Demand led/employer led • Emphasis is on ‘upskilling’ • Engagement with employers • Engagement with lifelong learning

24. Need to raise attainment • Only 76% of 16-year-olds stay in education, compared with >90% across developed countries • Fewer than half – 46% - of our 16-year-olds achieved five GCSE’s grades A-C including English and Maths last year • One in five employees lack the literacy and numeracy skills expected of an 11-year-old, according to a CBI commissioned survey in April 2007 • 97% of pupils with two A levels or more go to a University

25. The 14-19 Reforms • 2013 – Date by which education system will mean all 18-year-olds can continue learning • 2015 – Target date by which all young people progress to further learning beyond 16

26. 14-19 key national suites and frameworks GCSEs, A Levels Functional Skills Foundation Learning Tier Progression Pathways 14-19 Strategy available to all by 2013

27. 14-19 Diplomas

28. Additional/ specialist learning Principal Learning Generic Learning Skills, knowledge and understanding central to the chosen Diploma At least 50% is applied Employer designed and endorsed Functional skills: English, Maths, ICT Personal, learning and thinking skills Optional units Can broaden and deepen learning programme Progression pathways Work experience (minimum 10 days), Project Diploma Components

29. Diploma Equivalence

30. From a students perspective …

31. Summary ‘Traditional’ students will have a smaller share of the market • Aging Population Finance & Funding Vocational Learning Growing Part-time market Growing international market Changing Feeder Courses

32. How does this effect you and your employment service?

33. What can you do? • Find out what the recruitment plan is for your University. • How are they reacting to the Diploma? • What are the course development plans? • How do they see the demographics and opinions/attitudes of your students changing?