Georgetown University Center on Education and the Workforce’s Post

Mixed signals are looming over the American economy, perhaps most ominously for those just starting their careers. The overall unemployment rate for recent college graduates is 5.3%, up from 4.3% in January 2024—leaving many young people disillusioned with the job market. Historically, when employers tighten their belts, recent college graduates may consider whether graduate school is a better option than looking for a job. Indeed, during economic downturns, those seeking employment have often been advised to stay in school or pursue further education. But does that conventional wisdom still hold? Like the economic signals, the evidence for the value of graduate degrees is mixed. At the median, graduate degrees lead to higher earnings than bachelor’s degrees. However, the overall wage premium for graduate degrees relative to bachelor’s degrees hasn’t changed much for decades, even as the inflation-adjusted cost of obtaining a graduate degree has increased by 233% since 2000. Beneath these data, there is substantial variation by field, institution, and program. The trouble is that even when prospective students want information about debt and earnings across graduate degree programs, it isn’t always readily available. Without complete data, students will be gambling on their futures without knowing the odds of success. At a time when skepticism about the value of higher education is on the rise, institutions would do well to embrace increased transparency. It is an opportunity for them to make an evidence-based case for the considerable value that many programs provide. https://lnkd.in/eBfb7iTq

Glad to see Forbes reporting on our findings! https://lnkd.in/e9qVCZ9Y Researchers compared the earnings of almost six million Americans, 2.9 million with a degree and 2.9 million with high school diplomas only, to try to put a monetary value on a college education. Analyzing lifetime earnings, they found that earning a college degree provided an annual rate of return of 9.88% of women and 9.06% for men. This compares with the average stock market return of 7.58% over the last 50 years, using the S&P 500 measure.

Prospective students should carefully consider all available information—including costs and likely debt and earnings—before deciding which college programs they will commit their time and money to. The trouble is that even when prospective students want information about the cost of degree programs, it isn’t always readily available. While the Department of Education’s College Scorecard is a key public source of program-level data, it offers complete earnings and debt data for just 16% of master’s degree programs, 25% of professional degree programs, and 4% of doctoral degree programs. In a recent blog, Director Jeff Strohl discusses how transparency can help establish confidence in higher education. Read more: https://lnkd.in/eRrRCasH

With rising gas prices, grocery bills, and overall living costs, inflation remains a top worry for many Americans. This isn't just anecdotal – recent polls and economic data confirm these anxieties. The Federal Reserve is expected to raise interest rates in an attempt to curb inflation. However, the effectiveness and potential side effects of these measures remain to be seen. Read our latest article to find out more: https://lnkd.in/eQzx3iqC Join the 200K+ community of Apex, the #1 multimedia platform for internships and early careers in the US, by subscribing at: https://lnkd.in/eT9272cP #Inflation #CostofLiving #FinancialAnxiety #ConsumerBehavior #Budgeting

The Federal Reserve Bank of Dallas writes about the rise of short-term credentials, noting that student interest is growing as employers seek candidates with certifications and licenses. New research explores impact on economic mobility. https://bit.ly/4cdtG64 Enabling students and employers to more easily and accurately identify credentials of value begins with better data policy. Data systems that describe credentials, skills, and competencies in a standardized and interoperable manner will support learning & the economy. There is great work happening in this space under the leadership of Credential Engine and the Data Quality Campaign.

Why do we invest so much time and energy in promoting majors on the rather flimsy notion that 4 years of study should be dictated by a nominal 1% improvement in job prospects? Lies, damned lies and statistics have contributed to much of the problems facing university education. The discussion of job prospects from certain degree fields uses a comparative framework for often very small differences. Take this paragraph: "Parents ... believe that having a degree in business administration is more likely to lead to a job and a sustainable income than a degree in philosophy or art history. Yet the data doesn’t bear this out. One indicator, Payscale’s College Salary Report, ranks philosophy the 275th highest-paying major out of 800 degrees listed; Business administration ranks 373rd." I looked at the actual data this paragraph is based on. The difference in starting pay, according to Payscale's table, is $300. There's a more meaningful difference in mid-career pay (philosophy majors earning $105k, apparently, compared to $96k for business administration, since you ask.) But there's a lot more than just the major that goes into that difference, too. Elsewhere in this article, the author quotes a 2018 piece saying humanities majors might be 1% less likely to be employed after college. (Though this is far from the universal conclusion of similar reports). But is that really a substantial enough difference to sway a choice of major? Won't you develop better skills by doing something you're engaged in? The comparison game is pitting majors against each other while killing trust and faith in higher education overall. Until we really focus on the value of a university degree, we're contributing to our own problems. https://lnkd.in/ghKHXMVH

Despite recent overall findings that college is worth it (https://lnkd.in/enKMiWGu), that’s more true for some programs than others. A new tool calculates the return on investment for over 40,000 college degrees. Some of the completion-adjusted findings: 💡 Roughly 23% of four-year degree programs and 43% of two-year degree programs have a negative return on investment. 💡 Undergraduate certificates in the technical trades are more lucrative than a bachelor’s degree. 💡 Associate degrees in liberal arts or general studies have a negative median ROI. 💡 Almost all undergraduate cosmetology certificates yield a negative ROI. It’s clear that many colleges have work to do when it comes to improving the value of specific programs and incorporating better career readiness to ensure their graduates are maximizing the ROI of their degrees. What do you think of these numbers? https://lnkd.in/gpFd4Cbr #collegeROI

Is a college education still worth the investment? 🎓💵 This question is becoming increasingly relevant as alternative paths to high-paying careers gain traction. Payscale’s latest research report delves into this topic, comparing the pay differences between college graduates and non-college graduates. With college enrollment rates declining and tuition costs rising, many are reconsidering the value of a traditional college education. Our College ROI Report provides a data-driven answer. By ranking colleges based on the median salary over 20 years minus the cost of investment, the report concludes that college can still be a worthwhile investment—if students are strategic about their career goals. For employers, this research offers valuable insights on managing graduate premiums and preparing for a shift towards skills-based pay. Discover more about the findings and how they can impact your career decisions and hiring strategies in our full report. https://lnkd.in/g-YE57-d

Recent research underscores that earning a college degree remains one of the most significant investments for long-term financial and career success. Graduates not only enjoy higher employment rates and lower underemployment, but also faster economic recovery post-pandemic and real wage growth. Despite ongoing skepticism, the data is clear: a college education enhances job prospects and earning potential, providing robust returns in any economic climate. #HigherEducation #CollegeDegree #CareerSuccess #EconomicGrowth #Employment #EducationMatters

No U.S. college is better at improving the financial futures of its graduates than the Massachusetts Institute of Technology, according to the 2025 Wall Street Journal/College Pulse rankings. While the overall college rankings consider factors like student experiences and graduation rates, the best-salaries list looks only at metrics related to graduate earnings and return on investment. Behind the rankings The criteria for the best-salaries list are twofold. To secure a top position, colleges need to put graduates on lucrative pathways at the beginning of their careers and keep the price of attendance in check. When measuring financial success, the Journal and research partner Statista looked at income data 10 or 11 years after students entered college, combining that raw earnings data with the extent to which those earnings outpaced expected salaries, which were modeled on research done by the Brookings Institution. To gauge affordability and return on investment, the Journal drew on research from public-policy think tank Third Way, analyzing how long it would take for the salary premiums that graduates earn over the salaries of comparable high-school graduates to cover the estimated total cost of a four-year degree. Top-ranked MIT excels in each facet of the ranking. Two-thirds of a school’s score on the salary list comes from graduates’ median early-career earnings, and MIT graduates have the highest median, $133,793, of any ranked school. The school is also in the top 3% of ranked schools on the value list, the cost/benefit analysis that makes up the remaining third of the score. https://lnkd.in/ebzpAvCS