The End of the College Degree as a Job Guarantee

For the past half-century, it's been a given that the higher the education credential you earn, the better your job prospects. A bachelor's degree meant more money and more options than an associate's degree; a master's, even better. This long-standing correlation between education, employment, and income has been a cornerstone of our economy and a core promise of higher education.  

Recent shifts in the labor market are upending this reality.  Accelerated by the post-pandemic economic environment and AI’s ability to perform entry level tasks across several functions and industries, the traditional path from a degree to a job is changing. The structural changes impacting employment prospects for new graduates were detailed in a recent Wall St. Journal article that draws from this report by The Burning Glass Institute: No-Country-for-Young-Grads.

This shift has profound implications for students, universities, and employers. Simply earning a bachelor’s degree in liberal arts or business from a "good" university may no longer be enough to secure a job that meets a new graduate's salary expectations or provides an acceptable return on their education investment.  Recent grads and current undergrads now need to consider what additional skills they need to be gainfully employed.

In parallel, most universities are well behind the curve in terms of offering programs that are aligned with these new market conditions.  A viable university growth strategy is no longer just about developing internal capabilities or engaging third parties to serve non-traditional learners via online degrees and certificates. Institutions need to look at their core undergraduate offerings and determine what fundamental changes are required to prepare traditional students for a labor market that no one has ever seen.   

These daunting challenges will yield tremendous opportunities for start ups and existing companies that evolve to provide solutions to learners and universities.  The same goes for the investors who back these businesses. Please visit this space again for more on the evolving dynamics surrounding early career employment.