The Wakeup Call To Colleges: A Growing "Worthlessness" Of Degrees
Feb 24, 2024
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A revealing report shows many college graduates are underemployed, highlighting a disconnect between education and job market needs. As skills-based hiring gains traction, students are increasingly shunning liberal arts for trade-focused degrees. The discussion emphasizes the necessity for colleges to adapt, promote mentorship, and incorporate real-world skills. It also underscores the importance of resilience in navigating diverse career paths as conventional degrees lose their luster. This situation signals a critical wake-up call for higher education institutions.
A significant portion of college graduates is underemployed, indicating a mismatch between degrees acquired and job market demands.
Despite initial underemployment challenges, career growth is possible through diverse experiences and skills development over time.
Deep dives
Underemployment of College Graduates
Recent research indicates that a significant number of college graduates, roughly half from the 2012 to 2021 period, are experiencing underemployment, often earning less than what they would have made without a degree. While studies show that on average college graduates earn 20 to 25% more annually and accumulate more wealth over a lifetime compared to high school graduates, the current landscape raises questions about the value of a degree. Many graduates from liberal arts programs struggle to find high-paying positions, leading to the perception that practical degrees in fields like software engineering or sciences offer better returns. This situation underscores a disconnect between educational institutions and the evolving needs of the job market, presenting a challenge for graduates navigating their early careers.
Mismatch Between Education and Business Needs
There is a growing recognition that the education system is misaligned with the requirements of the business sector, leading to graduates lacking essential communication and problem-solving skills. Employers are increasingly focused on hiring candidates with strong general skills, such as writing and critical thinking, rather than solely relying on academic credentials. Many universities offer degrees without providing students the practical experiences, like internships, that better prepare them for the workforce. As a result, degree mills proliferate, producing graduates who may struggle to find meaningful employment in competitive job markets.
Long-Term Career Perspectives and Adaptability
Despite the challenges outlined by recent data regarding underemployment in the first nine years post-graduation, career trajectories are often much longer, allowing time for growth and transformation. Many individuals find that their initial roles may not define their entire professional path, as exposure to diverse experiences, mentorship, and skill development can lead to more fulfilling careers over time. It is essential for job seekers to remain resilient, seek guidance, and view their early years as a period of experimentation rather than a definitive judgment of their potential. Additionally, non-traditional career paths, such as gig work or creative endeavors, offer alternative avenues for success outside the conventional degree-centric model.
As companies shift heavily towards “skills-based hiring” to remove bias, we now see the unintended consequence. Half of all US college graduates are now “underemployed” and 52% of college grads never use the skills they studied in school.
This new study, which looks at 10-year job histories of college graduates in the US found that “of the graduates in non-college-level jobs a year after leaving college, the vast majority remained underemployed a decade later.” This study included college grads from 2012 to 2021, conducted by Burning Glass Institute and Strada Education.
Men with bachelor’s degrees earn approximately $900,000 more in median lifetime earnings than high school graduates. Women with bachelor’s degrees earn $630,000 more.
