Gen Z: 51% Think College Was a Waste of Money
College degrees have long been seen as the ticket to success in the job market. However, recent studies and polls are showing a shift in attitudes towards higher education. According to a recent Indeed Hiring Lab study, employer demand for college degrees is decreasing. Additionally, a new poll of 772 U.S. professionals with associate degrees or above reveals that many workers have mixed feelings about the return on investment of their college education.
Out of the respondents in the poll, it was found that Generation Z is the most skeptical about the value of their college degrees. A staggering 51% of Gen Z respondents believe that their degrees were a waste of money, a significant increase from the 20% of Baby Boomers who share that sentiment.
The disparity in opinions between generations can be attributed to several factors. One major reason is the changing landscape of the job market. While college degrees used to lead to higher earnings, the Federal Reserve Bank of San Francisco reports that the "college wage premium" - the difference in earnings between college and high school graduates - has leveled off in recent years. Additionally, the cost of college education has skyrocketed, with tuition and fees at all types of colleges increasing by up to 45% over the past two decades.
For many graduates, the financial burden of student loans looms large even after they enter the workforce. Over half (52%) of respondents in the poll graduated with student debt, with Millennials being hit the hardest. This debt not only impacts their finances but also delays their career advancement. Nearly 38% of respondents said that their student debt had a more significant impact on their career progression than their degree itself.
Furthermore, the prevalence of college degrees in the workforce has led to a saturation of highly-educated workers competing for limited highly-skilled jobs. Sociologist Jonathan Horowitz explains, "When more people have college degrees, there may not be enough high-skilled jobs to go around, leading some degree-holders to settle for lower-skilled positions."
Another factor contributing to the skepticism towards college degrees is the perceived mismatch between the skills learned in higher education and the skills required in the workforce. While most college graduates acknowledge that they have gained valuable skills, a growing number feel that they could perform their current roles without their degrees. This sentiment is especially strong among Gen Z respondents, with 68% believing that they could do their jobs even without a college education.
Interestingly, despite the decreasing importance of formal education in job requirements, a majority of respondents (67%) in the poll would be upset if their peers were able to secure similar positions without a degree. This cognitive dissonance highlights the frustration many degree-holders experience after investing time and money in their education, only to find that their competitive advantage has diminished.
The changing job market and the evolving nature of work demand a reevaluation of the value of higher education. As artificial intelligence transforms the workplace, educators need to adapt to ensure that students are equipped with the necessary skills for success in the AI-driven world. Francisco Marmolejo, an education advisor, emphasizes the importance of developing essential skills such as analytical thinking, teamwork, and critical thinking.
In conclusion, while there is growing skepticism towards the value of college degrees, many still see the benefits of education beyond technical skills. As the job market continues to shift and technology advances, it is crucial for educational institutions to evolve and equip students with the skills needed to thrive in the rapidly changing world.
