Survey Reveals Alarming Rate of Underemployment Among College Graduates
In a shocking revelation, a recent study conducted by the Burning Glass Institute and Strada Institute for the Future of Work has found that nearly half of college graduates in the United States are working jobs that only require a high school education. This underemployment trend has persisted for years, with 73 percent of underemployed college graduates remaining in such positions for a decade.
The study also highlights the fact that 52 percent of college graduates are underemployed just one year after graduation. This data raises concerns about the effectiveness of higher education in providing economic opportunities and upward mobility, as employers increasingly rely on factors other than degrees to assess competency.
Interestingly, the study found that graduates who secure college-level jobs upon entering the labor market are unlikely to slide into underemployment. A staggering 79 percent of these individuals maintain a college-level job for five years after graduation, and 86 percent remain in such positions for a decade. Conversely, 73 percent of college graduates who enter the labor market underemployed continue to face underemployment for a decade.
The cost-to-degree and degree-to-job ratio is another significant aspect to consider. The analysis shows that the average cost of an associate degree is $23,200, while a bachelor’s degree from a four-year public college or university amounts to $84,140. On average, individuals with an associate degree earn a median annual salary of $48,240, while those with a bachelor’s degree earn $68,736. These figures raise questions about the financial viability of pursuing higher education and whether graduates can find jobs that cover their student loan payments.
The study also sheds light on the most popular fields of study among college students. Business degrees top the list at 19 percent, followed by healthcare-related majors at 13 percent. The typical salary for someone with a bachelor’s degree in social sciences and history is approximately $64,540, according to the Bureau of Labor Statistics.
Julie Lammers, Senior Vice President of Advocacy and Corporate Social Responsibility at American Student Assistance (ASA), believes that these findings underscore the diminishing value of college degrees. She cites a survey conducted by ASA and Jobs for the Future, which revealed that 72 percent of employers find bachelor’s degrees unreliable in assessing candidate quality. Instead, they seek ways to evaluate candidates’ actual skills.
Lammers also emphasizes the importance of aligning postsecondary education with long-term career goals. Many young people pursue degrees that do not lead to their desired careers due to a lack of exploration and planning. ASA advocates for early exposure to the working world through internships and entrepreneurial experiences, which not only build skills but also foster professional networks crucial for long-term career success.
Durable skills, such as teamwork, problem-solving, critical thinking, and flexibility, are highly sought after by employers. America Succeeds conducted a study that found 70 percent of the most requested skills in job postings are durable skills. Employers prioritize these skills over degrees when evaluating candidates.
The study’s findings paint a concerning picture of underemployment among college graduates in the United States. It calls into question the effectiveness of higher education in preparing individuals for the job market and highlights the need for a shift towards emphasizing durable skills rather than degrees. As the labor market evolves, it is essential for both educational institutions and students to adapt to these changing dynamics to ensure economic prosperity and long-term career success.
