Go to college, graduate, get a similar job. A new report challenges the perception that a college education is necessary to enter the workforce.
Burning Glass Institute, a data research company, and Strada Education Foundation, a talent search firm, published a study on Thursday that found most of Recent college graduates who earned their Bachelor's degree between 2012 and 2021 in the US were not in a job that required their degree.
More than half of graduates (52%) were “underemployed,” according to the study, working in fields that did not require bachelor's degrees to enter, such as food service, office support, sales, construction and retail. . Additionally, 73% remained in those fields 10 years after graduation.
It is unclear how many hours worked per week are considered “unemployed” in this report.
Although the typical college graduate performs better in the labor market than workers with high school degrees, “a significant portion of graduates do not experience the economic outcome they expected from earning a bachelor's degree,” the study said.
College majors such as communications, journalism, psychology, and visual and performing arts reported the highest rates of underemployment, while health professions, such as nursing, had the lowest rates of underemployment.
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The report also showed that there are financial effects associated with underemployment. Recent graduates employed in college-level jobs earn an average of $60,000 per year, while underemployed graduates make $40,000. Additionally, underemployed college graduates were found to take home $8,000 more per year than high school graduates, who earn an average salary of $32,000.
The researchers used data from 2022 and determined median earnings by looking at workers who were employed full-time, year-round, or who worked at least 35 hours per week and 50 weeks per year and were not enrolled in school.
However, unlike high school graduates, unemployed graduates are still on the upswing an average debt of $34,700 for their degrees.
The study offered hope that quality guidance for college students, access to clear employment outcomes, and access to paid college internships can help bridge the gap.