The Value of a College Degree – That Depends on Chosen Field of Study

New report sheds light on value of college degree today.

There is little doubt that for the past two years college graduates have entered one of the worst job markets in history. Every one of us has heard monstrous tales of friends and relatives who have graduated only to have to move back in with their parents as they struggle to find meaningful work opportunities.

Such developments may have you wondering whether or not college is worth the significant costs, especially if one has to borrow money to pay ever-escalating tuition and fees. In fact, the job market, combined with the significant costs of attendance, has led many experts to now begin wondering about the value of a college degree as well.

A quick search of the Internet reveals two major articles from the nation’s most respected newspapers: the Los Angles Times and its front page story, Is a college degree still worth it?, along with a Sunday feature in the New York Times and the equally provocative Plan B: Skip College.

In addition to the general question of the value of a college education in today’s environment, one of the longstanding American traditions, earning a degree in the liberal arts is one receiving even more scrutiny. Once upon a time, the idea was that a general college education emphasizing a broad based curriculum was the ideal. The overall concept was quite simple.

Get the best possible education so as to prepare for a wide variety of career options, fire off resumes to the top companies, and then wait to see what career paths seemed to be the best fit. Under such a scenario, the cost of your diploma was incidental, a necessary expense to put you in the best possible position at graduation time. Also under such a scenario, the best possible education was delivered by elite, private colleges with a primary focus on the liberal arts.

While many students may well be wondering aloud, they do not have to look far to find defenders of the liberal arts degree even amidst our struggling employment situation. In direct contrast to its Plan B article, the New York Times recently ran two editorials, one by David Brooks, the other by Stanley Fish, defending the traditional liberal arts education. Throw in Peter Berkowitz of the Wall Street Journal, who insists that a liberal education “represents the culmination of a citizen’s preparation for freedom,” and as a student, you have to truly wonder what is up.

New Report from Georgetown University

To get some answers, we turn to Help Wanted: Projecting Jobs and Education Requirements Through 2018, a new report by the Georgetown University Center on Education and the Workforce. First there is better news on the future job picture.

The study indicates substantial gains in employment will begin as soon as 2011. However, it will take until 2015 for job creation to overcome the job losses created during the recent massive economic downturn. In other words, most new graduates will likely struggle to find employment for the next couple of years as well.

But as for the importance of a college degree, the Georgetown researchers indicate that by 2018, nearly two-thirds of all jobs (63%) will require at least some postsecondary education. Anthony P. Carnevale, the Center’s director, indicates that America will need more workers by 2018 with “college degrees, certificates and industry certifications” then there will be workers with such qualifications.

Therefore, in an additional two to four years, those with credentials will be in the driver’s seat when it comes to employment opportunities.

The fastest growing industries will demand the highest levels of education, with the exception of sales support and health care support. By 2018, according to the Georgetown report, “75-90 percent of jobs in Information Services, Private Education Services, Government and Public Education Services, Financial Services, Professional and Business Services and Healthcare Services will require postsecondary education or training.

Perhaps most importantly, the Georgetown researchers determined that postsecondary education will continue to be the best way to access middle class stature. Approximately nine out of ten workers with only a high school education or less will be limited to three occupational clusters that either pay low wages, feature fewer jobs, or a combination of these two developments. Sadly, as the economy gains traction, those who choose to forgo advanced schooling appear to be locking themselves into predominantly low-wage jobs.

The Occupation Matters

But the real key element of the report is that what matters most will be the occupation you prepare for and not the degree you earn. Because of that development, more than one fourth of the people who earn an Associate’s degree (31%) or advanced certificate (27%) will earn more than the average Bachelor’s degree recipient.

Furthermore, today’s career pathways will be in occupations and not within industries. The Georgetown researchers found that “the day when people left high school to go to work in the local industry and then worked their way up is disappearing. Starting out, straight from high school, on the loading dock or in the mail room and climbing to the CEO’s corner office is no longer an option.”

Tomorrow’s careers and career mobility will be based instead on occupations. Therefore the emphasis will be on postsecondary preparation that features skill development.

Once developed, workers will then take those skills to a variety of industries, whether it is in education, healthcare, or retail. While some occupations will remain tied to particular industries, the consensus is that more and more occupations will be dispersed broadly across industries.

In Summation

Postsecondary education and/or training, already the fundamental pathway to the middle and upper income classes, will become even more essential for climbing the financial ladder in the very near future. But at the same time, it must be said that a bachelor’s or advanced degree is not the requirement for such entry for certain occupations.

In addition, given the cost of higher education, it is imperative that students today have some sense of the occupational cluster they are interested in pursuing prior to selecting their college. Of course, those who are super wealthy likely need not worry about the cost of college – they theoretically can still spend four years in college without some sense of what career option they want to pursue.

But those of fixed means, especially those needing to borrow money to help defray costs, must understand that simply earning a bachelor’s degree is not the answer. A certificate program in information services or the health care industry will more than likely trump the opportunities provided by a generic bachelor’s degree in a field such as psychology or history.

For those in need of watching costs carefully (most of us), the latest findings indicate the importance of choosing a school and a program based on future employability. And to be able to make an educated decision, students need to have a sense of the type of occupation they want to pursue.

To have a sense of what career path you want to pursue, students must take the time in high school to participate in internships and career exploration programs. First hand experience is the best way to have a feel for the occupation or career cluster you want to pursue.

Everything from the Georgetown report indicates that post-secondary education is the path to future prosperity. In other words, entry into the middle and upper classes will increasingly be available only to those who have earned more than a high school diploma.

But at the same time, post-secondary education does not necessarily mean a traditional bachelor’s degree program at an elite, private liberal arts college.

 

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