The Importance of Post-College Employment
Maria Sieb
Economics B2
It’s generally agreed upon that with a college degree comes a higher-paying, more coveted job, right? That’s not always the case. In today’s job market, finding sufficient employment after college graduation is more difficult than it seems.
In good news, the unemployment rate for individuals with a bachelor’s degree or higher has gone down from 2.4% to 2.1% in the past year. This means those who earn a college degree have little trouble finding employment after graduation. While this is great, it becomes a bit more complex when you examine the types of jobs these graduates are finding.
Underemployment is a problem many people face in today’s world. Underemployment occurs when people in the labor force are employed at less than full-time or at jobs inadequate with respect to their training and economic needs. Individuals who are underemployed may face poverty or difficulty finding further employment because their skills aren’t being utilized in their current work. A report by Burning Glass and the Strada Institute finds that “43% of recent college graduates are underemployed in their first job out of college”. Moreover, more than one-half of that 43% are still underemployed after ten years. College graduates with degrees are working jobs that don’t require a degree. For recent university graduates, it’s important they find a well-paying job that is appropriate to their skill level to begin paying off their student loans. An underemployed graduate makes a typical salary of $37,330 whereas those who are adequately employed make $47,470. This gap in income means a harder time paying off loans and affording the ever-growing cost of living. Even in-demand STEM majors can’t escape the underemployment trap all the time. A startling 4 out of every 10 engineering majors works a job that requires no college degree at all.
In addition, underemployment of college graduates is related to a phenomenon known as degree inflation. Degree inflation is when employers want college degrees for jobs that don’t necessarily require college-level skills. This means some college graduates don’t put their college degrees to work on the job, even when employers request high credentials in job postings. Due to degree inflation, certain jobs that are classified as college-level might not actually require college-level skills. Therefore, true underemployment rates for those with degrees could be even higher than estimated.
Many of us are stressing about our future career path and college journey already, but now the fear of underemployment looms over us. While the worry of unemployment for college graduates dwindles, it’s important to make appropriate employment more obtainable. Why do we spend tens of thousands of dollars on college degrees only to find ourselves working a job that doesn’t require it? How can we provide more suitable jobs to those who earn higher education degrees? The answer, at this point, seems very difficult to find.
Works Cited
Cooper, Preston. “Underemployment Persists Throughout College Graduates' Careers.” Forbes, Forbes Magazine, 8 June 2018, www.forbes.com/sites/prestoncooper2/2018/06/08/underemployment-persists-throughout-college-graduates-careers/#713b32c67490.
“Unemployment Rate for Grads in August 2018.” U.S. Bureau of Labor Statistics, U.S. Bureau of Labor Statistics, 12 Sept. 2018, www.bls.gov/opub/ted/2018/unemployment-rate-2-1-percent-for-college-grads-3-9-percent-for-high-school-grads-in-august-2018.htm?view_full.
Wallace, Brian. “The Economics of College: Your Career Before You Start " The Merkle Hash.” The Merkle Hash, 29 Sept. 2019, themerkle.com/college-to-career/.
I found this very interesting and it also made me angry at the same time. It brings up whether going to college is really worth it. Instead of paying tens of thousands of dollars for a degree, I could be investing and making money while working a full-time job. It really makes you think harder about your future.
ReplyDeleteMost times employers don't even care what degree you have as long as you have college degree. So seeing that unemployment is so high for those with college degrees and a college degree isn't even really being utilized to its full potential is interesting.
ReplyDeleteIn school we are always told that if we go to college we will be employed. Yet, this isn’t true and you did a great job explaining this. I think it's interesting that even though unemployment is decreasing, there are still so many people graduating with a degree that can find work. I also found it interesting that psychology and Biology have higher unemployment rates than visual and performing arts. I would have thought they would be reversed. Overall I really enjoyed you blog post, good job.
ReplyDeleteUnderemployment has been a topic that I’ve seen in statistics of countries, but not something that I’ve reviewed intensely. Being more informed of the topic now, I find myself actually a bit worried for my future. As a future science major student, the chart shown seems to show that I’m not very much likely for more success. Though the field should be growing as more advancements mean more people needed and more minds put to use, this might not be the actual case. I might be underemployed, unable to pay off college debt for much longer than if I were to be employed with a good paying job within my major right out of college. As we talked about this topic earlier today about trying to pay off student loan debt faster than suggested to get rid of the thousands of dollars in interest that’s paid, that might not be something that I’m able to do. I might be forced to pay an ungodly amount of money in interest, simply because I’m underemployed and have a job that doesn’t even make use of my degree. All of the statistics that I see for colleges boast about their students finding jobs right after college, but just how many of those are within their major area of study, and among those, how many are unemployed? The future seems a little bleak at this point.
ReplyDeleteGreat topic Maria. In my opinion, the way to solve this problem is not go to college. First off, it reduces the stress of having to pay off student loans. This stress compounds with other daily stress, and makes life and finances worse. Second, depending on the major, almost all of the information you need for many jobs is on the internet. The amount of resources we have is unreal. Students think that going to college guarantees success, when in reality, your statistics have proven it is the opposite. The only thing it guarantees is mediocrity. Yes, you can earn a high salary at a big company out of 4 years at Harvard, but that is only for a select few. The cost of college is ridiculous, if not comical.
ReplyDeleteIt’s unfortunate that so many graduates find jobs that leave them underemployed. Considering the rising cost of a college education, it seems that college graduates should be getting paid more for their effort to get a degree and skills in their field. I was surprised that 4 out of 10 engineering majors work jobs that don’t require a college degree. I wonder if they regret going to college or feel as though their degree has less “worth” because of this. Most high schoolers are told they have to go to college if they want a good job, but it’s interesting that many people that do take the time and money to get a degree are underemployed. I wonder how long it takes underemployed graduates to pay off their student debts compared to graduates that aren’t underemployed. How much of an impact could the pay difference between these two types of graduates have?
ReplyDeleteI’ve seen more and more jobs that are looking for people who have the experience and not a higher level of education, though yes getting a college degree would make you a more eligible candidate for the job you’re applying for it doesn’t mean you're guaranteed that job because someone who doesn’t have the same level of education as you might have more experience so they’re comparatively on the same level as you but the person with experience will get the job because they have some level of understanding and therefore make it more worthwhile to hire them than you because of the aforementioned experience.
ReplyDeleteI did a topic similar to this and the things that college is doing for us considering how much it costs is crazy. “43% of recent college graduates are underemployed in their first job out of college.” This can almost be hard for some people to hear, especially people who are planning on going to college. Tuition is expensive, not to mention the price of books and living space, just to find out that there is a good chance we could be underemployed. Or the fact that we might want to change careers, or we might end up wanting a career that doesn’t even need a degree. I think that for some people this information can put college on hold and make people wonder if it is really truly worth paying all of the money for it. The way that we process this information could determine our entire future so I think that this topic is very important and crucial to our futures.
ReplyDeleteI thought this was an interesting post to read about, especially since we are getting ready to start college next year. Everybody already stressed about where they want to go and what they want to do, and now they have to worry about post college employment. Students will already have enough trouble paying off tuition as it is after college. If they don’t have a job it will make it so much more difficult to pay off the tuition.
ReplyDeleteWow, degree inflation and underemployment rates for different degrees is terrifying!! I never knew something like "degree inflation" existed... It's truly unfortunate that the economy is causing intelligent individuals, who have spent time and money on their extensive education, to struggle finding employment. Likewise, I think students like us need to be informed more of the job market so that we can effectively plan for our future without wasting our time and money. If students were provided more information at a younger age, then perhaps the underemployment rates would go down...? Thank you for writing this, I learned a lot!
ReplyDeleteThe "escaping under employment" graphs showed a wider story that was really interesting with how different careers end up being more or less successful in finding related work. It seems like the college system is turning into a version of the diamond economy where there is a huge supply of people, but colleges hike up prices and employers state that they require their employees to have degrees that have nothing to do with their field of work. Obviously some things like medical employment needs time to properly train people on how to take care of another person, but other jobs, like IT could very easily be performed by interns, but still require degrees to become successful within the business or company.
ReplyDeleteI really enjoyed how you didn't only focus on the employment rate but also discussed the question on what degree do you need and what skills are required to be learn for the job or field you go into. Is it always necessary to get a degree? i think definitely not, a few friends of mine are into the trades without degrees and are doing what they enjoy and getting paid good money in a desperate field. Why spend years paying off student loans when you can jump into what you love without the push people make on continuing education when it's not necessary? I also saw that depending on which field you go into can make it more competitive harder for you to get a job which must be kind of difficult to hear when you have a passion in a crowded field. With seeing the growing artists nowadays and how many there are, I wasn't surprised that visual arts and performing arts had high unemployment rates, after all they are called "starving artists".
ReplyDeleteThis is a very applicable topic for people our age now more than ever. We are deciding on what our next steps will be in our life: college, workforce, etc. Many people think that going to the most prestigious university will guarantee them a 6 digit salary. Yet, once many people graduate they are faced with reality. Although their education is valuable and a great asset, it won't always help them obtain a job. High school students may want to reevaluate how they plan on spending the next two to four years, as well as where they are putting their money.
ReplyDeleteIt is so crazy that their tends to still be a stigma around how college is the best way to earn the pathway to obtain a 4 year bachelors degree to be able to obtain a higher level and paying job. Although, more and more research is indicating that college is a pathway to receiving a job, but it may not be the safest option anymore. It will certainly earn you a degree towards a career in the field of your choice, but as the statics have stated above, 2.1% of college graduates are getting a career in their respected career from their degree. It makes us think about if this is really the correct move were making towards out future, from not only the amount of student loans gained to the risk of even being able to find a job in your career field. Their is more risk to college then others may think about, and more evidence and researching is discovering that.
ReplyDeleteIt is drilled into our heads that after high school, we should go to college. When in reality, for many careers, a college degree isn't even required, and a person could have been better off without the degree. There certainly are jobs in which it is important to go to college to receive education, however, it is unfortunate if a degree is received, and then not used post college. This could end up feeling like wasted money. It's crazy to think of how often people receive degrees and then don't even make use of them. This is something that is very relevant to all of us now as we make our decisions about our futures.
ReplyDeleteAs teens in high school we are forced to figure out what we want to do, how we're going to get there and what the next 20 years of our lives are going to look like when many of us either don't need that or will be way off from that plan anyways. I believe college is more known now a days for the experience more then the education. Everything you stated is very relevant and over looked.
ReplyDeleteThe importance of going to college and planning for our future jobs/ prospective colleges/post-graduation plans are imbibed to us; however, I realize that we do not spend enough time thinking about our immediate employment right after graduating college. This article is interesting as unemployment is decreasing but that statistic of 43% of college graduates being unemployed is very jarring. It pushes the question of whether college is actually worth it or not, as it does carry a significant price. Would it be more beneficial to get direct experience first? But don't you need further education to get that experience?
ReplyDeleteI knew that many people do not end up working in the field they get their degree in, but I did not realize that many people were underemployed. But, I think it is good that a lot of jobs are becoming more flexible in the types of degrees they take for some jobs, because it's very hard to know what you want to do with the rest of your life when you are 18. This idea that if you have a degree, you can get almost any job, but this cannot be true for everything. For jobs related to engineering and computer science, you need to learn those skills in college to be successful in any job in that field. I hope that by the time we graduate from college the number of people underemployed drops and companies are finding the best candidates for the job.
ReplyDeleteI'm curious as to see how these statistics change based on the level of degree you get. Of course, we still think of the relationship between degree type and income as linear, jumping from an associate's, to a Bachelor's, to a Master's, then to a doctorate (and possibly professional) degrees. But is this actually true? Most PhDs are employed, as they are in such high demand with such small supply, but does it go that way with a Master's degree, or does the statistic change to any real extent at all? It really feels like the only safe bet nowadays is to get a doctorate in a STEM field, so I'm just curious to see how true that really is.
ReplyDeleteI like how you explained the importance of making sure you get a job after college. But I also can agree with you can be just as successful if you decide not to go to college. This is where its hard for people are age to decide what they want to do with the rest of our lives. Because we are pushed so hard to go to college get a degree and go get a job. Where some that rout ins't ideal for a number of reasons.
ReplyDeleteI thought that this topic was very interesting seeing that this really is a thought that is in society but is not in fact true and most employers don't care
ReplyDeleteI found this interesting because now that degrees are being less and less utilized for specifics is it even necessary to go through with universities time and money dedication to get a job where you don't even use anything that you just put effort into?
ReplyDeleteThis is a very interesting topic. The idea of degree inflation was something that I had never heard of before. It is scary to think that we will be spending so much time and money on something that we will not even use in our careers. This is something that people can take into consideration when asking themselves if they want to go to college or not. College used to be something that was expected, but it is becoming more and more apparent that it may not be the right fit for everyone.
ReplyDeleteThis was another aspect of after college life that I had not thought about before. My thought was that most people would not have a problem finding jobs that require degrees after college, yet even if they did have problems they would easily be able to find a similar job with their degree. However if there are so many people that are having issues with underemployment, maybe people should reconsider what they want to do in college and how people with the same degree that they are going for are having success in the work force.
ReplyDeleteI found this topic interesting because I knew that a lot of people don't get a job in the field that they intended on studying after they graduate college but I didn't realize how many were underemployed. I feel that because of this jobs are becoming more lenient with who they employ to make up for the underemployment and hopefully over time those rates will drop and people with the proper education are being chosen for those jobs.
ReplyDeleteUnderemployment is something I had never really thought of in great detail, and I didn't realize the extent to which this affects people in our nation. I knew that the rate of unemployment is fairly low, but I was surprised to see how high the rate of underemployment is. However, it makes sense because no one really expects to receive a full-paying and steady career right out of college, usually you build up to that, and I think that is an appropriate way to earn your place. Overall, I would definitely say that this article opened my eyes to this idea and I am more aware of this concept now.
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