There have been any number of headlines about gradflation, the trend of increasing numbers of college graduates, and thus the devaluation of college degrees. Many of these portend doom for college graduates, or the job market, or both; this makes for exciting reading. It does, of course, raise the question of how real and impactful these problems are, especially for students who are currently trying to apply to college.
In this article, we’re going to look at the issue of gradflation in-depth. Our goal is to determine if this is a real problem, and how impactful it really is on a student’s chances of employment post-graduation. We’ll also look at how you can protect yourself from these issues, and whether or not any of these concerns are overhyped. Let’s jump right in!
What is Gradflation Anyway?
Gradflation is a portmanteau of two terms; graduation and inflation, and is used to discuss the phenomenon where there are an increasing number of college graduates in the US, competing for the same pool of jobs, thus devaluing the worth of a college degree, much the same way increasing the monetary supply decreases the value of a dollar.
This is not a new phenomenon or worry, people have been concerned about this for quite some time. It does get regular attention in the press however, and is therefore a somewhat constant worry for students, especially those wondering what major they should pursue.
It is true that the number of students going to college has sharply increased, as has the number of graduates in the job market. That said, college graduates still greatly out-earn non-graduates pretty much across the board, though there are some cases we’ll look at later.
It is also the case that as more students go to college, more jobs have come to expect a college degree, any college degree, as a prerequisite to enter that job. This is true even in fields where a degree was never a requirement historically, though it can be argued that as the world grows increasingly complex, college is becoming increasingly necessary for more fields.
Gradflation is Overhyped
Many of the articles which worry about gradflation follow a similar path. There is truth to it, but they do not present a full picture. This article from the Washington Times gives a good example of how these so often go. We’re going to go through the concerns they raise, and some of the problems we see with each.
Too Many Degrees, Too Few Plumbers
A common refrain is that too many students are entering college instead of the trades. It is the case that many students do see no option beyond college, something which may be a mistake, but many high schools also offer strong trade programs, indeed, this is increasingly the case.
While the number of college graduates has increased sharply, so too have the jobs requiring degrees, as the Bureau of Labor Statistics indicates. It is true that the number of people entering trades is historically low, and this does provide an incentive for interested students to consider these as an option. It is, however, simplistic to say that too many students are pursuing college, rather than entering the trades or other fields.
Emphasis on STEM Fields
In these discussions, there is generally a premium placed on STEM fields, frequently to the exclusion of other academic pursuits, especially those related to CS. Now, these fields are often quite lucrative, and have seen a hiring boom recently. That said, this is advice that has been pushed for quite some time, and as the LA Times wrote about last year, this had a predictable result.
Indeed, these gradflation articles, by focusing on STEM degrees as a solution, contribute to the same type of problem as they purport to be trying to solve, greatly increasing the number of graduates competing for a finite number of jobs. This isn’t to say STEM jobs are bad; many are excellent. They do not, however, automatically insulate you from the issues facing the broader job market.
The Value of Certain Majors
A common thread in these articles is the inherent superiority of certain majors when it comes to finding a job post-graduation, coupled with a particular disdain for other majors, ones viewed as lessening the prospects of graduates who focus on them. This generally focuses on the humanities, with a particular focus on area studies, part of a long trend of maligning liberal arts education and viewing college as solely preparation for a career.
Now, there are some truths to that, in that some majors do more directly prepare you for a career than others. Engineering, for example, is designed to help you become accredited as an engineer, and then enter directly into the field. That said, 55% of bachelor’s degree holders do not directly enter their chosen field. While STEM majors are perhaps more likely to, it is not a guarantee for them either.
Gradflation and Underemployment
While gradflation may be overhyped, and the articles around it often chasing after spectres than diagnosing actual root causes, there is a growing issue of underemployment, college graduates working at jobs which do not actually require or make use of their degrees. Indeed, around half of all graduates are working at a job which doesn’t require a degree five years out from graduation.
This problem manifests early and is persistent; students who are underemployed directly out of college tend to remain so for a longer time than their peers, and can struggle to break into the broader job market. First jobs tend to be sticky, setting the trend for your future employment prospects.
The causes of this are multifaceted, but where you attend college seems to have significantly more of an impact than what you major in. Some colleges simply do a much better job connecting students with career resources, and with helping them find jobs that make use of their degrees, even if it’s in a field outside their major.
Students who attend highly ranked private universities are significantly less likely to be underemployed than their counterparts; these schools invest more time into helping students find careers, and have more industry connections to allow for students to begin working directly out of college.
Field of study does matter however; students entering engineering and education are among the most employed at level, while biology and communications see some of the worst rates of underemployment. STEM fields fare slightly better than the humanities, but this is not universally true. Math heavy fields also tend to do far better than pure business at avoiding underemployment.
Should You Worry About Gradflation?
This is the key question, and the one students and parents sometimes come to us about. After all, college is a major investment of both time and money, and students want to be sure they’re getting their money’s worth if they decide to attend. In general, we believe college is almost always the right choice, but there are certain steps you can and should take to make the most of your chances for success.
Your college matters. Some schools do a better job of matching students with employment opportunities than others. Small, private colleges tend to do better; they simply have more resources to use per student. A large college can bring success, but you will need to put in more effort to find and connect with resources on campus.
Majors matter less. There has been a push for all students to focus on STEM fields, and claims that these guarantee employment. While these can have better odds, this is far from universal. You can major in almost anything; it’s the other opportunities you pursue which most often make the difference when it comes time to finding a job after graduation.
Internships are key. Students who take part in internships during undergrad are much more likely to succeed gainful employment afterwards. Many companies use internships as auditions, and students who do well can find offers of employment waiting for them. These don’t even need to be directly in your field, so long as you prove your value in what you do.
Education still has value. A college degree isn’t a guarantee of a great job, as it was a century ago. It is, however, a key to many careers, and students with degrees still significantly out earn their counterparts.You must be willing to put in the work, both in and out of the classroom, but college degrees still hold significant value.
College isn’t always the right choice. While college is the right choice for most students, it isn’t a requirement for a great job. Some students who struggle in school may instead find their calling in the trades, prospering in trade school or through internships. There are many great careers to be found here, often underexplored. These are not the panacea many articles suggest, but are an option some students would benefit from considering.
Final Thoughts
College is a major investment of time and money, and becomes more expensive every year. With costs so high, it is unsurprising that students and parents worry about the value of a degree, and fears of gradflation are understandable in this context. In spite of that, many of these are overblown; while there is something to be said for encouraging more investment into the trades, many students still succeed because of the college degrees they’ve earned, even in supposedly useless fields.
We hope this article has given you the insight you need to understand gradflation, and how you can avoid running into these issues on your own educational journey. College is an investment, and like any investment, you should study your options carefully before committing. If you’re looking for expert advice on that, Ivy Scholars can help. Schedule a free consultation today to learn how we can help make your educational journey easier.
