Common Misperception: A Degree Isn’t Cutting It

 

Is a College Degree really worth less today than it was say 10, 20 or 30 years ago?  This is a common point being brought up by many recent grads and soon-to-be undergrads about the current job market and the value of higher education.  But is there any validity to this growing perception?

It is true that more students are going to college for BA degrees and Masters Degrees.  This is in term creating more degreed workers in the market, giving more workers for employers to choose from.  Not only that, but average wages for BA holders has decreased steadily over the years.  So how could you then not think that there are fewer advantages to going in debt in student loans to achieve a higher education?

The answer is that college is still the most valuable option that we have, basically.  The misunderstanding comes from the perception of supply and demand for degreed workers in the market.  The demand for college degreed workers is rising; and if the supply is meeting the demand than there will not be the perceived wage increase that most of us expect or want to see…

Wages for college grad earners will not increase because the demand and supply are for the most part meeting each other’s needs.  This is the bottom line which misunderstanding college grads must begin to understand. 

According to a recent Georgetown Center study on employment growth, 2011 is supposed to show a resuming of job growth.  By 2018, over 30 million new jobs will require college education workers (http://blog.aacu.org/index.php/2009/12/16/distractions-from-problems-facing-higher-education-and-economy/).   With this fact, even more emphasis is going to be placed on hiring degreed workers each and every year up till 2018, proving that a BA degree still holds it weight.

Furthering this point, this same report by Georgetown Center’s website stated that when the recession tapers off, a great deal more of the non-college degreed jobs that existed before will be gone.  This point, along with the fact that about 30 million new jobs are coming our way is fuel for thought for BA naysayers…

So there you have it.  The misperception by many college grads is a worthy concern on many levels, but it is just that…a misperception of the market.  As supply meets demand there doesn’t seem to be any payoff; but demand is continuing to rise.  And with the replacement of most jobs that didn’t require degrees before by new degreed jobs, demand will increase dramatically.  A higher education degree is and will be your greatest option.

This blog was inspired by another blog written by Debra Humphreys, December 16^th, 2009 titled: “More Distractions from the Real Problems Facing Higher Education and the Economy”

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