College graduates are crossing the stage with more regrets and uncertainties than previous classes.
In fact, among traditional degree graduates in 2022, only 41% believe a college degree indicates that they possess desired qualifications for potential employment, indicating that college grads have increasingly less confidence in their preparedness for entering the workforce, according to a recent research study by Cengage Group. Also, nearly half of recent graduates (49%) report not applying for entry level jobs because they perceive themselves as underqualified.
Cengage Group’s 2022 Graduate Employability Report – the second annual report of 1,000 graduates who completed a degree or non-degree program in the last 12 months – looks at the trends surrounding the uncertainty many graduates face in both non-degree and traditional degree programs. The report also aims to provide insight to feelings of confusion and regret that graduates report having, as well as the stigmas shaping their approach to skills readiness and entry-level employment.
"Various economic circumstances – inflation spiking, job opportunities and resignations flourishing, and a potential recession looming – are pushing many graduates to question their education and career choices. On top of that, a growing focus on skills-based hiring juxtaposed with the stigma of non-degree programs are leaving graduates confused about what education pathways provide a good return on investment and best prepare them for the workforce,” said Michael E. Hansen, CEO of Cengage Group.
In light of recent National Student Clearinghouse Research Center data illustrating the continual decline of undergraduate enrollment, Cengage Group’s report provides vital insight on the following:
- Traditional college degrees are an uncertain indicator for employability
- Graduates possess more career confusion and less confidence entering the workforce
- Students have regrets about their traditional degree
- Employers must address stigma in the hiring process
Traditional college degrees are an uncertain indicator for employability.
For decades, college education has been perceived to provide greater job stability and higher lifetime earnings and obtaining a college degree was viewed as the primary pathway to achieving the American Dream. This idealization created a stigma around pursuing alternate career options and nontraditional degree types. Just over 30% of recent graduates think that their degree adequately indicates their skillset.
Graduates possess more career confusion and less confidence entering the workforce.
More than half of recent graduates report that they didn’t apply for entry level jobs because they felt underqualified (53%), effectively self-selecting out of potential job opportunities. Of these students, 39% report feeling underqualified for the role because they did not have all the skills specified in the job description.
Students have regrets about their traditional degree.
Half of college grads admit to having second thoughts about the degree they were studying for (55%) and regret their traditional education paths. Given the chance to go back, 41% would earn the same degree but focus on a more in-demand field. Nearly three in every four students consider additional training post graduation, believing additional certifications, training, or courses would help them reach financial stability. When asked if they could go back in time and choose their post-secondary education path again, only 25% of recent graduates would follow their original academic path.
Employers must address stigma in the hiring process.
Students are looking for employers to reevaluate entry-level position qualifications and to redefine career readiness as it is currently known. Sixty one percent of graduates agreed that it’s on employers to change the stigma and credential status quo, opting to reevaluate the two- and four-year degree requirements for many entry-level positions. Employers could help address their skills and talent gap by looking beyond a traditional degree and providing ongoing workplace development options within their organizations. In fact, nearly all graduates (95%) say they would pursue online training if their employer covered the cost.
“Employers today desperately need workers who possess the skills needed to perform specialized, modern day work, and we’re seeing many workers pursue shorter-term online training courses that allow them to acquire these skills more quickly and affordably. With many graduates now pursuing non-traditional education paths, this is a huge talent opportunity for employers and we encourage businesses to re-think hiring procedures and remove the stigmas associated with non-traditional degrees,” said Hansen.
College graduates see the value of skills training credentials as a clear indicator of job qualification and are experiencing frustration with the disconnect between their obtained degree and the current job market. The findings of this report illustrate the need for more education and resources for students around career planning and job readiness, as well as a call for employers to re-imagine how they cultivate their future workforce.