Additional Coverage:
- 8 College Majors That Are a Waste of Money (financebuzz.com)
College Degree No Longer a Golden Ticket, Study Suggests
A recent study reveals a growing number of college graduates are finding themselves in jobs unrelated to their field of study, or even jobs that don’t require a degree at all, leading to long-term financial struggles.
The days of a college degree guaranteeing a clear path to financial success appear to be fading. A new report from the Strada Education Foundation and the Burning Glass Institute indicates that a significant percentage of degree-holders are entering the workforce in positions that don’t utilize their specialized education, or even any degree whatsoever.
Researchers meticulously examined the career paths of over 10 million individuals who entered the job market in the last decade. Their findings are stark: 52% of graduates initially accepted roles that were not considered “college-level.” Even more concerning, a majority of these underemployed graduates remained in similar positions a full ten years later.
This “chronic underemployment” isn’t just about struggling to pay rent in the present. Its effects ripple across decades, significantly diminishing lifetime earning potential. While college graduates in degree-level jobs earn, on average, 90% more than those with only a high school diploma, underemployed college graduates see a much smaller advantage, earning only about 25% more.
Experts point to modern hiring practices, particularly the widespread use of applicant tracking systems (ATS), as a major contributor to this stagnation. These automated systems often filter out resumes if early career positions don’t align with the applicant’s desired field, regardless of their degree, preventing human eyes from ever seeing their qualifications.
What You Study Matters More Than Ever
The primary factor determining whether a recent graduate secured a degree-level job in their field was their chosen major. Surprisingly, even STEM fields, often touted as surefire pathways to success, aren’t immune to this trend. The study found that 47% of those with degrees in biology or biomedical sciences were still underemployed five years after graduation.
The research identified several fields with the highest risk of underemployment, where at least 50% of graduates were not working in their chosen field or utilizing their degrees in jobs requiring no higher education:
- Public safety/security
- Recreation and wellness
- Business (management, marketing, HR)
- Humanities and cultural studies
- Visual arts
- Journalism and communications
- Psychology
- Social sciences
Majors Offering Better Odds
On the brighter side, some fields offer significantly better odds of securing a degree-level job and avoiding persistent underemployment. Healthcare workers ranked highest, with only 23% remaining underemployed five years post-graduation. Other majors offering more favorable career prospects include:
- Engineering
- Math-heavy business
- Architecture
- Education
- Math and statistics
- Computer science
- Physical science
- Public administration and social services
The Bottom Line: Rethinking the College Path
While a bachelor’s degree still generally leads to higher earnings than a high school diploma, its “punch” is not what it once was. With the real risk of underemployment and subsequent lifetime earning loss, it may be time for prospective students to reconsider traditional four-year degrees and explore alternative paths, such as trade schools. Trade programs offer practical skills, often at a fraction of the cost, and can potentially lead to greater wealth accumulation over a lifetime compared to being an underemployed college graduate.
Read More About This Story:
- 8 College Majors That Are a Waste of Money (financebuzz.com)