United States

50% of college graduates work jobs that don't require their degrees

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  • Over half of college graduates are underemployed, working in jobs that do not require their degrees.
  • The financial impact of underemployment includes lower salaries and the burden of student debt.
  • Internships and practical experience during college can significantly reduce the risk of underemployment.

In today's competitive job market, a startling trend has emerged: more than half of college graduates are working in jobs that do not require their degrees. This phenomenon, known as underemployment, has significant implications for both individuals and the broader economy.

According to a recent report by The Burning Glass Institute and the Strada Education Foundation, 52% of college graduates are underemployed, working in fields that do not necessitate a bachelor's degree. This trend is particularly prevalent in industries such as food services, office support, sales, construction, and retail. The study analyzed data from 60 million Americans and found that 73% of these underemployed graduates remained in such positions even ten years after graduation.

The Financial Impact of Underemployment

The financial repercussions of underemployment are substantial. Recent graduates employed in college-level jobs earn a median salary of $60,000 annually, while their underemployed counterparts make only $40,000. Despite earning $8,000 more per year than high school graduates, underemployed college graduates still face the burden of student debt, averaging $34,700.

The Role of College Majors

The choice of college major plays a crucial role in determining employment outcomes. Majors such as communications, journalism, psychology, and the visual and performing arts report the highest levels of underemployment. In contrast, health professions like nursing have the lowest underemployment rates. This disparity underscores the importance of selecting a major with strong career prospects.

The Importance of Internships and Practical Experience

Securing internships and gaining relevant work experience during college can significantly reduce the risk of underemployment. Internships provide students with practical skills and industry connections, making them more attractive to potential employers. According to Matt Sigelman, CEO of Burning Glass Technologies, "Having an internship is really needle-moving in terms of your likelihood of landing into the kind of job you went to school to get".

Gender and Underemployment

The issue of underemployment also has a gender dimension. Women are more likely to be underemployed than men, with nearly half of female college graduates initially underemployed compared to 37% of male graduates. This gender gap persists over time, highlighting the need for targeted interventions to support female graduates in their career transitions.

Strategies to Break the Cycle of Underemployment

To address the issue of underemployment, several strategies can be implemented:

Enhanced Career Guidance: Providing students with better career guidance and information about employment outcomes can help them make informed decisions about their education and career paths.

Access to Internships: Expanding access to paid internships can provide students with valuable work experience and improve their employment prospects.

Skill Development: Encouraging students to develop a diverse skill set through electives and extracurricular activities can make them more adaptable in the job market.

Networking Opportunities: Facilitating networking opportunities with industry professionals can help students build connections and find job opportunities that align with their degrees.

The trend of underemployment among college graduates is a pressing issue that requires immediate attention. By providing better career guidance, expanding access to internships, and encouraging skill development, we can help graduates find meaningful employment that utilizes their degrees and supports their long-term career growth. As the job market continues to evolve, it is crucial to ensure that higher education remains a valuable investment for all students.


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