Half of college graduates are working high school level job
Half of college graduates are working high school level job, per Bloomberg.
A recent joint report by two research firms revealed that within a year of graduation, approximately 52% of recent bachelor's degree recipients in the US are employed in positions that do not require a college education.
The majority of these graduates, comprising 88%, find themselves in underemployment situations within five years of graduating, often working in high school-level jobs such as office support, food service, and retail. The report, conducted by the Burning Glass Institute and the Strada Education Foundation, analyzed the career paths of 60 million individuals in the US, including 10.8 million bachelor's degree holders.
Despite the expectation that a bachelor's degree would lead to better job prospects, many graduates do not achieve the economic outcomes they anticipated. While underemployed graduates earn approximately 25% more than workers with only a high school diploma, this falls significantly short of the earnings of those in degree-requiring roles, who earn 88% more than high school graduates.
The report highlights that the choice of field of study also plays a crucial role. Fields that require quantitative reasoning, such as engineering, finance and accounting, and computer science, have lower five-year underemployment rates. Conversely, fields like public safety and security, recreation and wellness studies, and marketing and business management have higher underemployment rates.
Furthermore, the report emphasizes the difficulty of transitioning out of underemployment. Graduates who start their careers in underemployed roles are 3.5 times more likely to remain underemployed after 10 years. Conversely, around 21% of graduates who begin their careers in degree-requiring roles eventually transition to underemployment within a decade.
The report suggests that securing an internship in one's field of study significantly reduces the likelihood of underemployment. Graduates with internships before graduation had a 48.5% lower chance of being underemployed in their first year of employment. However, only 29% of college graduates manage to secure paid internships before graduation, highlighting the need for policymakers and universities to promote such opportunities.
The researchers also advocate for personalized career coaching for students, which has been shown to be beneficial. However, they note that the current ratio of students to career services staff at US colleges is 1 to 2,263, indicating a need for more resources in this area.