According to a recent survey, many Generation Z graduates believe that attending college was not worth the cost.
Why It Matters
A significant increase among Generation Z graduates believing that their university studies were not worth the investment highlights increasing dissatisfaction with conventional higher education systems. With escalating tuition fees and unprecedented levels of student loans, numerous recent grads are doubting if degrees still provide the monetary and career stability they used to offer. This change in viewpoint might lead to lasting impacts on colleges, employment sectors, and overall economic advancement, particularly as options such as vocational institutes, web-based credentials, and job-focused courses become more favored alternatives.
What To Know
A survey carried out by Indeed from March 27 to 31 involving 772 US adults revealed that 51% of Generation Z graduates believe their degree was a “waste of money.”
This compares to 41 percent of millennials and only 20 percent of baby boomers. Altogether, over one-third of all graduates currently believe their degree was not worth the investment, as indicated by the survey, which has a margin of error of +/- 4.1 percentage points.
Sean Lyons, who serves as theAssociate Dean at the University of Guelph’sSchool of Business and Economics, stated
career
He isn’t shocked by the findings from Indeed’s survey, considering that the price tag for obtaining a bachelor’s degree in the U.S. has surged twofold within the past twenty years, now exceeding $38,000. Moreover, certain fields such as psychology, philosophy, or English may require more than two decades of work experience before the investment in their degrees pays off, based on data from the Education Data Initiative.
“I’m not surprised by this in the least,” Lyons stated.
He mentioned that two key factors are influencing why young people today face more challenges in achieving career success as opposed to previous generations.
Initially, the economic landscape and job market underwent significant transformation.
“The skill set for employment in today’s post-industrial economy requires technical skills that are not typical of what baby boomers, Gen Xers, or even millennials required to succeed,” Lyons explains.
Technological advancements have eradicated numerous low-skill positions, whereas well-compensated, stable professions nowadays require advanced specialization. Despite universities attempting to adapt with highly focused courses, Lyons cautions that graduates currently encounter a predicament akin to “threading a needle” as they strive to secure desirable roles within these confined sectors—an obstacle earlier cohorts did not confront to the same degree.
Second, Lyons says graduates’ expectations around college degrees have shifted.
He points out that in previous generations, a college degree was quite uncommon, thus commanding a significant career advantage.
In the early 1970s, merely 10 percent of Americans held college degrees, whereas today this figure stands at approximately 40 percent, with a significant rise in those obtaining advanced degrees as well. He pointed out that this “academic arms race” now makes having a degree essential yet not enough on its own for achieving career success.
In the last twenty years, the price of tuition and fees at all American colleges and universities has surged anywhere from 32% to 45%, as reported by U.S. News. During this period, the overall amount of student loan debt has skyrocketed to almost $2 trillion.
The survey indicated that numerous graduates continue grappling with student debt well beyond receiving their diplomas. Over half (52%) of participants mentioned leaving college burdened with educational loans, with millennials being notably impacted as 58% stated they carried such debts into their professional lives. Furthermore, individuals bearing student loan debt (41%) were more prone to view their degrees as unwise expenditures when contrasted with those free from debt (31%).
However, the effects of student loans extend further than just financial stress. Almost 40 percent stated that their student debt hindered their career progression more than their diploma aided it.
An increasing number of Generation Z graduates are pondering whether attending college truly mattered: 68 percent think they could handle their work responsibilities without earning a degree, contrasting with only 49 percent of Baby Boomers who feel the same way. According to a recent economic study, employers now see fewer differences when comparing high school and college graduates, perceiving their skill sets to be more alike than before. Nevertheless, 67 percent of those surveyed admitted that discovering a peer got an equivalent position sans a degree would bother them.
The survey indicated that as artificial intelligence permeates every aspect of education and employment, college graduates are increasingly doubting the value of their degrees. Thirty percent stated that they believe AI has rendered their degree obsolete, a figure which rises to 45 percent among Generation Z respondents.
However, Kyle M.K., a trends specialist at Indeed focusing on careers, mentioned to
Fortune:
Artificial intelligence acts as a multiplier rather than a termination notice. It doesn’t negate a good education, but it does favor those continually enhancing their skill set.
Based on information from the Social Science Research Council, approximately 4.3 million individuals among the youth population are currently classified as NEETs, which stands for “not in education, employment, or training.”
However, Lyons emphasized that Generation Z should consider more than just their initial employment.
He stated, ‘If you measure the worth of a college degree only based on how good your initial employment opportunity is during an economic downturn, then naturally it might appear as though you didn’t receive satisfactory returns for your money spent.’
Nevertheless, he notes that even under these challenging circumstances, college graduates still “earn considerably higher incomes and experience much lower unemployment rates” when contrasted with individuals who hold just a high school diploma—indicating that the long-term benefits of obtaining a degree remain robust, though they may not be as instantaneous or assured as they were for previous cohorts.
What People Are Saying
Sean Lyons, who serves as theAssociate Dean at the University of Guelph’s School of Business and Economics, stated
career
: ”
When comparing different generations regarding their professional achievements, two main factors come into focus. Firstly, it’s essential to recognize how the economic landscape and job markets have evolved throughout the years. The current post-industrial economy demands specialized technological abilities that were less critical for success among Baby Boomers, Generation X members, or even early-stage Millennials. With each round of innovation, simpler technical roles become obsolete, pushing up the requirements for elite positions. Consequently, this trend confines well-compensated, stable opportunities to an increasingly narrow range of advanced technical competencies.
For Baby boomers, possessing a college degree in any discipline was enough to land them a middle-management role and ensure a comfortable lifestyle. However, as time progressed through different generational shifts, emerging technologies along with corporations’ unyielding pursuit of maximizing profits led to fewer opportunities for individuals lacking specific skill sets. To adapt to this rapid evolution, educational establishments developed more targeted courses. Yet, those who graduated from such specialized programs may find themselves expecting to easily secure employment within an extremely limited professional scope—akin to trying to thread a needle. Earlier cohorts were not as narrowly concentrated when beginning their career journeys.
The second point concerns what recent graduates anticipate regarding their future careers after completing their studies. Back in earlier times, having a college diploma was less common, which meant it often led to better job prospects. When baby boomers graduated around 1970, only about one-tenth of people held such degrees; today, nearly two-fifths do. Additionally, the count of U.S. citizens holding advanced qualifications has surged considerably during the last couple of decades, indicating something akin to an educational escalation. Clearly, possessing a university degree is essential for pursuing most professions, yet alone it isn’t enough. For Generation Z members—whose own parents may lack this level of schooling—it could feel quite disheartening to realize these realities.
Furthermore, many college students view their initial employment post-graduation as a key indicator of how worthwhile their higher education has been. Indeed, this early career step holds significance; however, it merely marks the start of what can be an evolving journey. Contemporary professions demand ongoing education and skill enhancement. Numerous experts find themselves needing supplementary instruction or qualifications alongside practical experiences gained from their undergraduate degrees to land desirable positions.
Judging the worthiness of a college education based exclusively on securing a decent role during challenging economic times could understandably lead to feelings of dissatisfaction regarding your educational expenditure. It’s essential to look further ahead rather than focusing only on landing that very first job. Nonetheless, individuals holding bachelor’s degrees consistently outperform those who stopped at high school when measured against lifetime earnings and stability in finding new roles. Although the benefits tied directly to earning a university credential may appear less assured today relative to past eras, possessing such credentials remains substantially advantageous over choosing otherwise.
Kyle M.K., a professional trends analyst at Indeed, stated
Fortune:
These circumstances are pushing universities and employers to move their emphasis from academic background to hands-on skills. Actually, 52% of U.S. job listings on Indeed do not specify any particular educational requirements.
Christine Cruzvergara, who holds the position of Chief Education Strategy Officer at Handshake, shared this information with Fortune.
Focusing solely on short-term employment is narrow-sighted because it assumes that the sole purpose of higher education is just securing your initial job. In truth, higher education plays a crucial role in advancing one’s career, providing exposure to different industries, aiding personal growth, and honing managerial and leadership abilities.
What Happens Next
The number of college-educated Americans is expected to shrink in the coming years because of a combination of factors, including a projected decline in the number of high school graduates and changing attitudes toward higher education, according to research by ICEF USA.
Updated on April 26 at 1:36 PM ET: The piece has been revised to include remarks from Sean Lyons.
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