Gen Z: 51% Believe College Was a Waste of Money
In a time when college degrees were once seen as the ultimate path to success in the workforce, recent studies and polls are showing that this sentiment may be changing. According to the Indeed Hiring Lab, employer demand for college degrees is on the decline, and a new poll has revealed that many workers have mixed feelings about the return on investment of higher education.
A survey of 772 U.S. professionals who hold associate degrees or higher uncovered some concerning trends, particularly among Generation Z individuals. This generation appears to be the most skeptical about the value of their college degrees compared to other age groups.
A significant value gap has emerged when examining responses across different generations. Shockingly, 51% of Generation Z respondents believe that their college degrees were a waste of money, a stark increase from the mere 20% of Baby Boomers who share this sentiment. This begs the question: why is there such a stark difference in opinions?
Historically, earning a college degree has been linked to increased income potential. Over the decades, data from the Federal Reserve Bank of San Francisco showed a growing wage gap between individuals with college degrees and those with only high school diplomas. However, analysts suggest that the so-called “college wage premium” has plateaued in recent years.
At the same time that the value of college degrees may be diminishing, the cost of obtaining a higher education has skyrocketed. In real terms, U.S. News estimates that tuition and fees at colleges and universities have risen by a staggering 32% to 45% over the past two decades across all types of institutions—public, private, in-state, and out-of-state.
The financial strain of student loans can haunt individuals long after they graduate. More than half (52%) of the survey respondents revealed that they carried school debt upon graduation, with Millennials being the hardest hit demographic, as 58% of them entered the workforce with student loans.
The negative impact of student debt goes beyond just financial constraints. Nearly four in ten respondents (38%) admitted that their school debt impeded their career advancement more than their actual degree. It is unsurprising that those burdened with student loans were more likely to consider their college education a waste of money compared to those without such debt.
One possible explanation for the growing disillusionment with college degrees is the oversaturation of the job market with highly educated individuals. Sociologist Jonathan Horowitz argues that as more people earn college degrees, there may not be enough high-skilled jobs available to accommodate all graduates, leading to fierce competition and underemployment.
In addition to economic considerations, another factor contributing to the skepticism surrounding college degrees is the perception of a mismatch between the skills acquired in higher education and the demands of the workforce. While the majority of college graduates acknowledge gaining valuable skills, an increasing number believe that they could perform their current roles without their degrees. This sentiment was particularly prevalent among Generation Z respondents, with 68% of them expressing this belief.
Recent data from Indeed shows that 52% of job listings no longer require formal education, marking an uptick from 49% in 2019. This changing landscape suggests that employers are increasingly viewing high school and college graduates as interchangeable candidates for many positions. Despite this trend, a significant portion of survey respondents (67%) indicated that they would feel upset if their peers were able to secure similar roles without a college degree.
The cognitive dissonance experienced by many degree holders highlights their frustration at investing time and money in obtaining credentials that may no longer provide the competitive edge they once did. According to the Federal Reserve Bank of New York, college graduates are entering a job market with less favorable conditions, thus eroding the pay advantage that had traditionally made a college education so desirable.
However, despite the growing doubts about the financial return on investment of college degrees, some individuals still see value in higher education—especially when learning extends beyond technical skills. Graduates like Nico Maggioli, who earned a degree in communications design from Syracuse University, believe that their education was worthwhile primarily for the experience and perspective gained during their time at university. Maggioli emphasizes that his program focused more on developing a creative mindset rather than just technical skills, highlighting the ongoing relevance of such an education in a rapidly changing world.
As the landscape of work and learning continues to evolve with the rise of AI and automation, there is a growing call for educational reform to better prepare students for the challenges of the future. Francisco Marmolejo, a higher education president and education advisor, stresses the importance of prioritizing essential skills such as critical thinking, collaboration, and adaptability over technical expertise. In a world where technology is rapidly advancing, the ability to think creatively and humanistically may prove to be more valuable than ever before.
In conclusion, the changing attitudes towards college degrees underscore the need for a reevaluation of the traditional higher education model. With shifting economic realities, technological advancements, and evolving skill demands in the workforce, educational institutions must adapt to ensure that students are equipped with the knowledge and capabilities necessary to succeed in a rapidly changing world. While the value of a college degree may be in flux, the need for lifelong learning and the acquisition of essential skills remains as critical as ever.
