Baroness Sherlock (Lab)

My Lords, my noble friend is a tribute to Dundee Institute, and indeed HNDs and the country, so we all have cause to be grateful for its investment in him. My noble friend is right that there are clearly challenges in the graduate market, but I want to say up front on AI that we do not yet see the evidence that this necessarily means a long-term decline in graduate jobs. AI is having a range of impacts; its impact is contested and it is different and it is changing as we go. However, his point is incredibly important, and the Government need to act to ensure that graduates and young people generally have access not just to entry-level jobs but to proper high-quality careers. That means investing in sectors which are producing growth, making sure we have the right skills, and that career services, both within education and in the new jobs and career service, are supporting people to make sure they develop the skills needed to go into the sectors where there are increasing numbers of jobs and those jobs are better paid. I am very optimistic. AI offers opportunities as well for young people. Young people are much more technologically savvy—than me anyway, I hope—and much more optimistic about the impact of AI, so there are real opportunities as well as challenges.