A recent study by the Strada Institute for the Future of Work and the Burning Glass Institute reveals a concerning trend among four-year college graduates: 52% find themselves underemployed a year after finishing their degrees, a situation that persists for 45% of them even a decade later.
The findings, part of the “Talent Disrupted” report, shed light on the employment challenges facing recent bachelor’s degree holders and delve into the reasons behind their prolonged underemployment.
The report provides a comprehensive look at the employment landscape for college graduates. Underemployment, as defined in the study, refers to positions that do not require a bachelor’s degree, indicated by roles where more than half of the incumbents lack one.
Stephen Moret, president and CEO of the Strada Education Foundation, emphasized the need for higher education institutions, states, and the country at large to enhance support for students transitioning from college to the workforce. The research highlights a significant pattern: graduates who begin their careers in roles not requiring a college degree often find themselves stuck in such underemployment for extended periods.
Conversely, individuals who secured college-level jobs immediately after graduation were more likely to maintain such employment levels, with 79% still in degree-requiring jobs five years later and 86% ten years after graduation.
The probability of underemployment also varies by the type of institution attended. Graduates from more selective colleges and those serving fewer low-income students had better employment outcomes. Additionally, private nonprofit universities reported lower underemployment rates than public universities and for-profit institutions one year after graduation.
This data underscores the critical need for targeted efforts to bridge the gap between higher education and the labor market, ensuring graduates can fully leverage their degrees in their chosen fields.