Brain Drain Drives Growing Urban-Rural Divide in Graduate Retention, Study Reveals
A new study reveals the towns and cities in England where graduates are most likely to remain after completing their studies, underscoring the growing ‘brain drain’ affecting rural areas and smaller towns.
The study, conducted by student recruitment marketing agency Think Orion, analyzed government data on several student cohorts. It calculated the percentage of graduates who stayed in their university regions, employment rates, and income potential across different areas.
Major urban centers like London, Manchester, and Liverpool retain a significant proportion of graduates due to abundant career opportunities and competitive incomes. In contrast, smaller towns and rural areas struggle to attract graduates back home after higher education, resulting in lower retention rates.
This disparity highlights the challenges faced by less urbanized regions in offering sufficient incentives to retain skilled graduates, as many move elsewhere for education and opt not to return.
This is in line with a phenomenon referred to as the ‘brain drain’, where many UK regions lose their graduates to London, as the capital offers stronger employment opportunities.
London had the highest graduate retention rate in England, at 84.2%, and is the only region in the UK where university graduates are more likely to remain than non-graduate residents.
The average annual income in the city is £51,662, the highest in the UK, and 61% of adults are employed, meaning many graduates thrive with an abundance of employment opportunities and high earnings.
In second place is Manchester, with a retention rate of 76.3%. The average annual income in the city is £33,715 and around 54% of adults are currently employed.
Liverpool takes third place, retaining 76.26% of its graduates, just behind Manchester. With an average salary of £34,172 and an employment rate of 51%, graduates from the city have a good incentive to remain in their home region.
Newcastle is the city with the fourth highest graduate retention rate in England. Around 72.6% of graduates from the area choose to remain living in Newcastle, where they can expect to earn an average salary of £34,667, with adult employment rates averaging 50%.
In fifth place is Birmingham, England’s second city, where an average income of £33,076 keeps 71.7% of graduates in the city. Employment rates among adults are 50%, but the large, well-connected city makes it a popular hub for commuters.
Sunderland is sixth, retaining 71.2% of its graduates. Around 52% of adults in Sunderland are employed, and the average earning among them is £30,977.
In seventh spot is Warrington and Wigan. High average earnings of £39,659 per year and an employment rate of nearly 60% among adults allows the area to hold on to 70.9% of its graduates, an impressively high rate.
Dudley is eighth, retaining 69.7% of its university graduates. Despite not having a university of its own, some nearby institutions offer opportunities to study in Dudley, and the town is near universities in Wolverhampton and Birmingham, meaning many students commute to study and choose to remain at home.
These geographical conveniences, plus an employment rate of 55% and an average salary of £32,677 encourage many young graduates to remain in Dudley.
Birkenhead is in ninth place, with a retention rate of 68.6%, an average income of £34,506, and an employment rate of 53%.
The final region to make the top ten is Sheffield, with a retention rate of 68.1%. The adult employment rate in Sheffield is 53%, with an average income of £33,714, making the city a desirable place for graduates to settle.
Manno Notermans, CEO of Think Orion, commented on the findings:
“The ‘brain drain’ from rural areas, small towns, and even large university cities to London is a concern for local authorities, as jobs requiring qualified professionals are often left unfilled.
“Relocating to London is an exciting opportunity for young graduates, with high employment statistics and average salaries providing a great incentive to move. However, a significantly higher cost of living awaits London-dwellers, and excellent employment opportunities are available for students across the country.
“University cities like Manchester, Liverpool and Birmingham all have several universities and produce cohorts of thousands of students per year, so to retain this proportion of students is indicative of the number of home-grown young people who choose to remain in the city to study, and also of the opportunities in employment and development that each city offers.”
“For towns like Birkenhead and Dudley, retaining such a high percentage of graduates is an exciting indication that the towns are popular with their residents, and are up-and-coming areas for career progression and industry.”