The Burning Glass Institute’s Post

The New York Times columnist Peter Coy and I spoke about prospects for the Class of 2024. In the immediate term, it’s hard not to conclude that college graduates are oversupplying the market as growth in the number of college graduates has outpaced the growth in college-level jobs. The result: 52% of recent graduates find themselves in jobs they didn’t need to go to college to get, as The Burning Glass Institute and the Strada Education Foundation's Institute for the Future of Work documented in our recent report (https://lnkd.in/eDwbKGaM). However, over the long term, America benefits from having a highly educated workforce. Demand for talent is not fixed. The center of gravity of our economy is increasingly in the knowledge economy where jobs follow talent. And, as The Project on Workforce at Harvard colleague David Deming explains, college is still a good bet over the long arc of a career, despite the risks, by providing greater resiliency and more opportunities to move up – as Jeff Selingo and I explored in our 2023 report “Making the Bachelor’s Degree More Valuable” (https://lnkd.in/gDsYpNKF). Thanks as always to Stephen Moret, Andrew Hanson, and Heather McKay at Strada and to Burning Glass colleagues Carlo Salerno, Mels de Zeeuw, and Gad Levanon for their partnership in advancing much-needed research on this topic. #careers #economy #highereducation #jobs #collegesanduniversities https://lnkd.in/eBAAsqJ7

The article raises an important perspective on the ongoing debate about the value of degrees in today's evolving job market. While the skills-based hiring movement might seem like a path towards broader economic opportunity, the article points out that the economic advantage of a degree remains significant. The data suggests that college graduates earn a substantial wage premium compared to those with only a high school diploma. This wage gap underscores the value of the broad education and targeted skills that college provides, preparing individuals for career success, analytical thinking, and effective communication. Furthermore, the article highlights that while alternative credentials and skills-based programs have their place, they should be seen as complementary to traditional degrees rather than as replacements. Tailored, short-term programs can supplement the knowledge and skills acquired through degrees, allowing individuals to stay adaptable and relevant in a fast-changing job landscape. It's crucial to recognize that the growth in skills-based credentials often comes from those who already hold degrees and seek to enhance their skill sets. The "both/and" approach, where individuals pursue both degrees and additional skills, is a testament to the enduring value of education in driving personal and professional growth. As the job market continues to evolve, the article reminds us that degrees are not mere barriers but rather tools that help people thrive. The focus should be on making education accessible, adaptable, and inclusive, allowing individuals to succeed in their careers while embracing the dynamic nature of modern work.

Valuable insights from CareerBuilder for future graduate students. Shout out to Emoni Henry, an outstanding professional marketer, for sharing this article from GSU Online! #GradatState

I have been waiting for someone to explore this perspective - not just because college graduates make more money, but because of what college can mean for lasting impact and success across the board (and even in people's personal lives, which I wish had been addressed here). And in general, I think it is all about young #students having choices and understanding how to make the choices (through out their education and careers) that are the best for realizing their dreams about what challenges they want to address and the lives they want to live: "There is a reason college graduates earn so much more, and it isn’t just because they’ve got an extra piece of paper. The huge growth in the wage premium for college degrees reflects not state bureaucracies or corporate HR policies, but century-long economic changes that generate more jobs requiring the abilities and knowledge acquired in college. The broad education and targeted skills that college graduates usually obtain prepare them for career success. That includes analytical and communications abilities, tailored preparation in popular subjects like business, nursing and computer science, or liberal arts majors that have significant long-term benefits. When undergrads are also able to develop their social capital to build professional networks, so much the better. It’s a category error to treat college degrees like dubious occupational licenses that have become barriers to entry in certain fields. College degree alternatives may still play a worthwhile role for some students. For all the benefits that accrue to earning traditional two- and four-year degrees, large populations of learners need something different. Tailored, short-term, skills-based programs and credentials in everything from data science to graphic design should be widely accessible — and they should be simple to acquire and reacquire over a lifetime, to meet changing needs. Whenever possible, students should be able to combine them, over time, into two- or four-year degrees. Remember, much of the growth in skills-based credentials seems to be coming from people who already have degrees and want to supplement them with additional skills. They’re taking a “both/and” approach to get ahead, not giving up on degrees altogether." Via Ben Wildavsky in The New York Times. #HigherEd #College #Skills #Jobs #Degrees #Credentials #HumanResources #Hiring #Certifications #CollegeDegree #HighSchool #Careers #Education #Learning #Workforce

The United States needs to be better educated, not less well educated, in order to be economically competitive and to protect our national security. It is also the single most important thing individuals can do to improve their economic well-being. I am a fan of alternative certification programs and technical and trade training, but that does not alter my belief that we need more college-educated people, not fewer. Nothing is more intellectually productive than multiple years of sustained and rigorous academic work at a time when one is still cognitive developing, before the age of 25. Facts: "The economic advantage of getting a college degree remains at just about an all-time high when compared with the average earnings of Americans with only a high-school diploma. In recent years, a typical college graduate earned a median wage premium of more than $30,000, or almost 75 percent more than those who had completed just high school, a 2019 New York Fed analysis found. "In April 2022, a major study by the Society for Human Resource Management, or S.H.R.M., found that 71 percent of executives said that some alternative credentials are equivalent to a bachelor’s degree. But only 58 percent of supervisors (most likely beneath those executives on the organization chart) concurred, a figure that fell to 36 percent for human resources professionals, or those typically closest to hiring decisions. "In another experiment by S.H.R.M., hiring managers and human resources professionals evaluated hypothetical job applicants with traditional degrees more highly than those with alternative credentials, particularly when the job ad used strict degree requirements. This was the case even when the latter were viewed as more likely to have the technical skills needed for the job "Another study often cited as evidence of declining employer interest in college degrees doesn’t fully capture what’s happening. The Burning Glass Institute’s “ Emerging Degree Reset” report from last year pointed to a decline in degree requirements for middle-skill jobs in particular. But the analysis was  based on online job postings, not actual hiring decisions. A later data analysis found that in some key respects, “employers are hiring more (not less) college grads.” "What about all the Silicon Valley firms so often associated with the “death of the degree” narrative? Here, too, revealed preferences are, well, revealing. Degree requirements in formal job listings remain in the 70- to 90-percent range at blue-chip firms like Google, Apple and Intel. #workforce #work #college #highereducation #highered #college #training #nationalsecurity #economy

Maybe we still need to send our kids to a college For years, many have argued that dropping college degree requirements from job descriptions would democratize the job market, allowing people with skills but no formal education to land jobs they were previously ineligible for. But recent findings from The Burning Glass Institute and Harvard Business School cast doubt on this notion. Their report reveals that despite many companies making a show of dropping degree requirements, very few non-degree holders are actually getting hired for these roles. To put it in perspective, for all the fanfare around "skills-based hiring" or "tearing the paper ceiling," only about 1 in 700 hires last year were non-degree holders. This finding isn't an isolated case. Multiple research efforts and journalistic inquiries have reached similar conclusions over the past several months. What's particularly striking about this new report is its origin. Burning Glass, an organization that has long advocated for the abolition of college degrees in hiring, found that skills-based hiring hasn’t lived up to its promise. Interestingly, the report also highlights the deceptive nature of the term "skills-based hiring." It implies that those with college degrees lack skills, which is far from the truth. In fact, college degrees have historically been seen as indicators of persistence, foundational skills, and general capability. While Burning Glass and others argue that the rigor of the college experience is presumed and increasingly difficult to justify, the reality is that employers still value the comprehensive social and intellectual development that colleges provide. The report categorizes companies into two groups: “In name only” companies, which announced changes but didn’t actually modify their job postings or hiring practices, and “Backsliders,” which initially made gains in hiring non-degree holders only to revert to their old ways. Combined, these groups make up about 65 percent of companies that announced a drop in degree requirements, only to hire just as many, if not more, college graduates as before. The report suggests that the initial executive enthusiasm for skills-based hiring didn't translate into necessary underlying systems and practices changes. It’s also worth considering the costs and complexities involved in identifying and assessing skills. Developing fair and reliable tests to evaluate an applicant's skills is neither easy nor cheap. This could be why companies eventually return to using degrees as proxies for skills and capabilities. Moreover, companies may have realized that the skills and experiences acquired in college are crucial. Employers have long stated that socializing and broad-based learning during college are valuable. These experiences help develop critical thinking, problem-solving abilities, and social skills, all essential in a workplace setting. #microlearning #higheducation #continuouslearning #Edtech #LnD

The overarching data paints a contrasting narrative in terms of the current narrative about higher education: Those with a college degree are more likely to secure employment, accumulate wealth, maintain good health, establish and sustain marriages, and generally find themselves on the favorable side of virtually any metric gauging prosperity and stability. As a professional and if you are a recruiter, It's crucial to acknowledge that these are aggregate figures, and individual experiences can vary widely. A college degree, while not guarantee, historically correlates with improved life outcomes. Is the industry trying to save money by hiring employees with no degrees? Nevertheless, the post-graduation landscape is challenging, and recent graduates may face hurdles despite these averages. Statistically, numbers are mere reflections of trends, not certainties. It is common knowledge that a degree doesn't automatically ensure success. However, stepping into the workforce during a robust job market, even when it benefits less-educated individuals, is markedly more advantageous than graduating amid an economic downturn. #uopeople #collegesuccess #labormarket

Is college worth the investment? You're not alone in asking. A recent survey revealed that many students prioritize finding a good job after graduation. But how do colleges ACTUALLY stack up on delivering career outcomes? Gone are the days of rankings based solely on fancy buildings and academic reputation. New methods are focusing on what matters most: YOUR future career. This new outcomes-focused approach means colleges are ranked based on factors such as: ▪️Graduation rates: Are you more likely to finish your degree on time? ▪️Salary boost: How much does your degree bump up your earning potential? ▪️Job placement: Will you land a secure job after graduation? Illinois Tech's recent rankings include: ▪️#16 "salary impact" ranking: Our graduates see a HUGE salary boost compared to cost of attendance ▪️Nationally above-average starting salaries: No matter your degree, you're likely to earn well with a degree from Illinois Tech ▪️Focus on career preparation: We prepare students for in-demand, high-paying jobs from day one Want to dig deeper? Check out the full blog post for more details on the changing college landscape and tips for choosing the right college for YOU! ➡️ https://lnkd.in/dREgjg55

The American dream is… complicated. The narrative that a college degree would automatically equal a successful career hasn’t turned out to be true in today’s business world. Interestingly, 52% of college grads are still underemployed a full decade after graduation, according to a new study. The system is broken. Conventional pathways to careers are falling short when it comes to delivering candidates with the skills businesses need. We need to offer alternatives to better meet young people where they are. https://lnkd.in/ep53E9Xq (Shameless plug: An “earn and learn” approach like the Hire-Train-Deploy model accelerates real career growth and earnings potential for IT talent.)