Only after these few graduate do many of them start exploring careers. It is here that they discover that their degree may not have prepared them for the world of work. You may be well educated, but not every degree is direct preparation for employment. This misalignment between degrees and job skills causes half of university graduates to be under-employed in what are called gray-collar jobs. Taking positions that do not require the education they have received, at a cost that is more than they can afford.
Conventional wisdom suggests that a university degree guarantees a higher salary. But with rising education costs, a shrinking job market, and the oversaturation of some academic majors in the workforce, this old advice is now a myth for a majority of students. The economy and the world have dramatically changed. Over the last 3 generations we’ve gone from 13% of the population stepping into a college classroom, to 60% attending some form of higher education.
In 1960, when taking into account all jobs in the American economy, 20% required a 4-year degree or higher. 20% were technical jobs requiring skilled training, and 60% were classified as unskilled. But what’s the right percentage to meet the labor market demand for tomorrow? In 2018, Harvard University predicts only 33% of all jobs will require a 4-year degree or more, while the overwhelming majority will be middle-skilled jobs requiring technical skills and training at the credential or Associates Degree level. A 4-year degree may have many benefits, but think about people you may know who, from an economic perspective, inefficiently spent time and money to get a degree that perhaps they didn’t really need for the career they are in.
The true ratio of jobs in our economy is 1:2:7. For every occupation that requires a master’s degree or more, two professional jobs require a university degree, and there are over half a dozen jobs requiring a 1-year certificate or 2-year degree; and each of these technicians are in very high-skilled areas that are in great demand. This ratio is a fundamental to all industries. It was the same in 1950, the same in 1990, and will be the same in 2030.
The hope for encouraging university education is that as the number of university-trained workers increases, the demand for their services in the workplace will increase as well. Unfortunately, this is not so. The whole pie may get bigger as the labor force and the economy grows, but the ratio will not change. The reality is there will not be more professional jobs available within the labor market. And some professional jobs have been replaced by technology, or are being outsourced.
Well intentioned attempts to send more and more students straight to the university will not change the types of jobs that dominate our economy, nor will a “college-for-all” mentality mask these labor market realities. The “college for all” rhetoric that has been so much a part of the current education reform movement is often interpreted as “university for all.” This message needs to be significantly broadened to, “a post-high school credential for all.” Students at various educational levels have left school without employable skills; setting up our children for failure,
costing them and taxpayers millions. All while the labor market is desperate for highly-trained, skilled technicians. So, how do you position yourself for high-wage, in-demand jobs?