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‘Brain drain’ for rural areas as London boasts England’s highest graduate retention, research finds

London was the only region in the UK where graduates were more likely to stay than non-graduate residents.

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‘Brain drain’ for rural areas as London boasts England’s highest graduate retention, research finds
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A study by student recruitment marketing agency Think Orion has revealed that London has the highest graduate retention rate in England, with 84.2% of university graduates choosing to remain in the capital after completing their studies.

London was the only region in the UK where graduates were more likely to stay than non-graduate residents.

The findings attributed this to the capital’s strong employment prospects, with an average annual income of £51,662 – the highest in the UK – and an adult employment rate of 61%.

It also considered employment statistics and average income figures to understand the factors influencing graduates’ decisions to stay or leave.

Manchester ranked second, with 76.3% of graduates remaining in the city – the average annual income in Manchester is £33,715, and 54% of adults are employed.

Liverpool followed closely in third place, retaining 76.26% of its graduates, with an average salary of £34,172 and an employment rate of 51%.

Newcastle has been ranked fourth, with a graduate retention rate of 72.6%, an average salary of £34,667, and a 50% employment rate.

Birmingham is in fifth place, retaining 71.7% of graduates.

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The average annual income in Birmingham is £33,076, with 50% of adults employed.

The sixth-highest retention rate is in Sunderland, where 71.2% of graduates remain, earning an average of £30,977, with 52% of adults employed.

Warrington and Wigan ranked seventh, retaining 70.9% of their graduates.

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The area stood out for its high average earnings of £39,659 per year and an employment rate nearing 60%.

Dudley was eighth, with 69.7% of graduates staying in the area.

The town benefits from its proximity to universities in Wolverhampton and Birmingham, alongside an average salary of £32,677 and an employment rate of 55%.

Birkenhead ranked ninth, retaining 68.6% of its graduates, with an average salary of £34,506 and an employment rate of 53%.

Sheffield closed out the top 10, with a graduate retention rate of 68.1% – graduates in Sheffield were found to earn an average income of £33,714, and 53% of adults are employed.

The study highlighted the disparity between urban and rural areas in retaining graduates.

Smaller towns and rural regions had disproportionately low retention rates as students often leave for higher education and do not return.

This trend, referred to as the ‘brain drain’, underscored the appeal of urban centres like London, where job opportunities and higher salaries are concentrated.

Manno Notermans, CEO of Think Orion, said: “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.” 

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