The Diminishing Value of Degrees

The Diminishing Value of Degrees

Even four year at college doesn't guarantee you a running start

The stories are told on every college campus. An Ivy League graduate is folding T-shirts at the Gap, someone who wrote a senior thesis in economics is now delivering Domino's pizza, and a Phi Beta Kappa history major is still living with her parents, praying for even one response to the dozens of résumés already sent out.

A college diploma no longer guarantees job placement and success. Recent college grads currently outnumber the available jobs that require a degree. Employers aware of this surplus are demanding more than just a sheepskin from ther prospective employees, and more recent grads are being left behind. The Bureau of Labor Statistics predicts that the trend will become more pronounced in coming years, with a dramatic increase in unemployment or “underutilization> after graduation, forcing grads into fields that require no college diploma.

Which recent grads will have the edge? Experts advise that smart students will start thinking about their careers long before they actually march in cap and gown. That means coursework tailored to a specific career, meaningful on-campus activities, and summer internships with hands-on experience. Majors in engineering and the sciences are in the highest demand and will be rewarded with the highest wages.

A chemical engineering major is not a viable option for everyone, but there are ways that every college student can improve his or her career outlook. Basic computer proficiency is a must, and computer programming skills are an added attraction to employers. Those with fluency in a second or third language will also have an advantage, given the new international focus of many corporations, and knowledge of non-Romance languages like Japanese or Czech is especially desirable.

Without the degree – without the learning and problem-solving skills that it certifies, without the web of connections that comes with it – a young person today begins work with a handicap so large as to be almost, but not entirely, insurmountable. Photo by Elena, the Soldiers Tower on Toronto University campus.

Willingness to relocate is an important factor, according to college recruiters, and job applicants should seriously consider smaller cities in the South and West that will offer the most job growth in the upcoming decades. Candidates should also consider small to medium-size companies, which will be hiring the most workers. Fewer of the big-name corporate recruiters are visiting campuses nationwide, according to the College Placement Council in Bethlehem, Pa.

Recent college graduates face a tough market, but the situation for those without degrees is even bleaker. Because of radical changes in the structure of the U.S. economy in the past decades, career outlooks are dismal for workers without a college education. Moreover, many of the jobs that don't require a degree will nonetheless be taken by 'underutilized” college grads, leaving even fewer jobs for the high school grads.

College grads also receive the majority of high-paying jobs overall. Median earnings for college grads  are almost twice as high as for high school grads, and the average unemployment rate for college grads  is twice as low as unemployment rate for high school grads. That college sheepskin may not be worth as much as it once was, but you're still a lot better off with it that without.

Finally, remember as your mother may have told you, a liberal arts major just won't pay the bills. And do not forget, and start spreading the news: the biggest new-job markets are not in the Big Apple. Cities in the West and South will be offering more opportunities than the more traditional grad-magnets of the Northeast.