While college graduates still stand a much better chance at employment than those who go straight into the workforce after high school, underemployment is becoming more and more common for new graduates.
A person is said to be underemployed when he is working a job for which he is overqualified. For example, if you recently finished college, but you’re waiting tables or working as a barista at Starbucks, you are underemployed. While being underemployed is certainly better than being unemployed, it’s not an idea situation for graduates struggling with debt, rising food costs, and moving away from home. Nevertheless, 48% of recent college graduates are dealing with it now, and it doesn’t look like the trend will be stopping anytime soon.
Of course, the results vary with your choice of college and major. Those who attended large state universities tended to do better than those from less selective institutions, and graduates of prestigious private schools are suffering the least with underemployment. Similarly, graduates with degrees in engineering and economics are more likely to be gainfully employed than those with degrees like social work or English even further out into their careers:
“If you look at in the middle of the career of someone, say, 15 years out after graduation, the typical earnings of an engineer is pretty close to $100,000 a year. The same is true of my field of economics. But if you were to go to teaching or social work, the figure is more likely $50,000 a year.” – Dr. Richard Vedder, Ohio University Department of Economics
The reason for the past decade’s sharp rise in underemployment is complex. America’s job needs have changed. The service industry has exploded; manufacturing has declined; interest in math and science has waned in our high schools. All these factors contribute, but it doesn’t mean that underemployment can’t be avoided.
Recent graduates can certainly break the mold by taking extra initiative to get into a position for which their degree will be put to use, and students now in college can make strides towards standing out in their major. Networking is one of the keys as well as taking on a variety of professional and extracurricular activities.
So if you count yourself among the millions of underemployed graduates, take heart; you’re not alone. Just remember to be productive during your underemployment, and try to make this temporary situation worth your while.