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Gen Z: 51% Believe College Was a Waste of Money
College degrees have long been seen as the ticket to a successful career, but recent trends suggest that the value of higher education may be diminishing. A study conducted by the Indeed Hiring Lab has revealed that the demand for college degrees among employers is on the decline. Additionally, a new poll conducted on 772 U.S. professionals with at least an associate degree has shown that there is a growing skepticism among workers regarding the return on investment (ROI) of a college education.
When broken down by generation, the poll results show that Generation Z is the most likely to believe that their degree was a waste of money. In fact, a staggering 51% of Gen Z respondents expressed regret over pursuing higher education, a significant increase from just 20% of Baby Boomers who felt the same way. This stark contrast can be attributed to a variety of factors, including changes in the job market, rising costs of education, and the burden of student debt.
For years, having a college degree was associated with higher earning potential. According to data from the Federal Reserve Bank of San Francisco, the wage gap between college and high school graduates had been steadily increasing from 1980 to 2010. However, analysts now believe that the so-called “college wage premium” has reached a plateau, meaning that the financial benefits of a degree may not be as substantial as they once were.
Compounding this issue is the fact that the cost of attending college has been skyrocketing. Inflation-adjusted tuition and fees at both public and private institutions have increased by 32% to 45% over the past two decades. As a result, more than half (52%) of the poll respondents graduated with student debt, with Millennials being the hardest hit, as 58% of them carried loans into their professional careers. This financial burden has had a significant impact on their lives, with nearly 4 in 10 respondents (38%) reporting that their student debt had delayed their career advancement more than their degree itself.
Furthermore, the increasing prevalence of college degrees in the workforce has led to a saturation of highly-skilled workers. Sociologist Jonathan Horowitz explains, “When college degrees become more common, there may not be enough high-paying jobs to accommodate all graduates, leading to some individuals being pushed into lower-skilled positions.”
Many young people today are questioning the value of a college degree due to stagnant wages, rising costs, degree saturation, and the burden of student debt. These factors have led to a growing sentiment that higher education may not be as worthwhile as it once was.
Interestingly, while most college graduates acknowledge the skills they acquired during their education, an increasing number believe that they could perform their current roles without their degrees. Among the poll respondents, 68% of Gen Z, 64% of Millennials, 55% of Gen X, and 49% of Baby Boomers felt that way. Additionally, as of January 2024, more than half (52%) of job postings on Indeed no longer require formal schooling, indicating that employers may be viewing high school and college graduates as interchangeable.
Despite this shift in employer attitudes, the majority of poll respondents (67%) would still be upset if their peers were hired for similar positions without a degree. This cognitive dissonance highlights the frustration that many degree holders feel after investing time and money in their education, only to find that their competitive edge has diminished.
The Federal Reserve Bank of New York reports that college graduates are facing a challenging job market with worsening conditions, eroding the pay advantage that once made a college education so appealing. These challenges point to the need for a reevaluation of the value of higher education in today’s rapidly changing economy.
While some doubt the ROI of their degrees, others see value in education that goes beyond technical skills. Nico Maggioli, a communications design graduate from Syracuse University, believes that his degree was worth it for the creative perspective it provided. Maggioli’s professors focused on developing a designer’s mindset rather than teaching technical skills, which he believes is essential in today’s world where AI technology is increasingly replacing human tasks.
As AI continues to reshape the workplace and education, it is essential for educational institutions to adapt to these changes. Francisco Marmolejo, an education advisor at the Qatar Foundation, emphasizes the importance of teaching essential skills such as analytical thinking, teamwork, and critical thinking in preparation for an AI-driven world.
In conclusion, the growing skepticism among young people regarding the value of a college degree highlights the need for educational reform to ensure that graduates are equipped with the skills needed to succeed in today’s rapidly evolving job market. By focusing on essential skills rather than just technical knowledge, schools can better prepare students for the challenges of the future.
