Recent College Graduates Are Expressing Buyer’s Remorse

Many recent college graduates report feeling confused and lacking confidence about the value of their education and readiness for their careers. That’s one of the main takeaways from Cengage Group's 2022 Graduate Employability Report, a survey of 1,000 graduates who completed a degree or non-degree program in the last 12 months.

This is the second consecutive year that Cengage has conducted its employability survey, examining how today’s graduates feel about entering the job market. The survey gathered and compared responses from graduates of traditional degree programs (associate’s, bachelor’s and master’s) as well as those from non-degree programs (vocational and certification programs).

Here are some of the main findings:

• Graduates are skeptical about their education’s contribution to career "readiness." Among college degree graduates, only 41% believed their education was a good indication of the skills they possessed. Among the non-degree completers, 49% said the same thing.
• Graduates also express uncertainty about whether they are sufficiently prepared for the workplace, and if the skills they do possess are matched to their career goals. As a result, 49% of recent graduates said they didn’t apply for entry level jobs because they felt underqualified.
• Added to the loan debt many graduates have assumed, many are feeling "buyer's remorse" - just 25% said they would follow the same education path that they had originally taken.
• In addition, more than half of all graduates (55%) admitted to second thoughts about the specific academic program they were studying, and 41% of graduates said that if they had it to do over again, they would focus on getting a credential in a more "in-demand field."
• Compared to the 55% of traditional degree graduates reporting second thoughts about the degree they were studying for, the “second thought” percentage for non-degree graduates was a bit lower, standing at 46%.
• Today's graduates disagree with the requirement of a college degree that employers still impose for many jobs. In fact, when it comes to job qualifications, 61% of graduates (compared to 58% in 2021) believe that employers should stop requiring two- or four-year degrees for many positions.
• Graduates are open to, and interested in, additional workforce training - 95% said they would pursue online training and credential programs if their employer covered the cost. However, that figure appears unusually high given the traditional take-up rate of employer-provided education and training benefits.

Commenting on the findings, Michael E. Hansen, CEO of Cengage Group, said, "Various economic circumstances – inflation spiking, job opportunities and resignations flourishing, and a potential recession looming – are pushing many graduates to question their education and career choices. On top of that, a growing focus on skills-based hiring juxtaposed with the stigma of non-degree programs are leaving graduates confused about what education pathways provide a good return on investment and best prepare them for the workforce."

He added, "employers today desperately need workers who possess the skills needed to perform specialized, modern day work, and we're seeing many workers pursue shorter-term online training courses that allow them to acquire these skills more quickly and affordably. With many graduates now pursuing non-traditional education paths, this is a huge talent opportunity for employers and we encourage businesses to re-think hiring procedures and remove the stigmas associated with non-traditional degrees."

Even though the economic premium associated with earning a college degree remains robust - median earnings for people with a bachelor’s degree are 63% larger than the earnings of those who have only completed high school, - the mindset of many recent college graduates does not reflect confidence about that advantage.

Instead, they express misgivings about their preparation for work, and they often feel their degrees are mismatched to the expectations of employers. Given current labor market conditions, the upshot of these doubts is likely to be greater enrollment in shorter term, non-degree educational pathways as opposed to traditional college degree programs.

Methodology

Cengage Group's Graduate Employability Report was conducted in May 2022, It consisted of a poll of 1,000 Americans 18+ who had graduated or completed their education program in the past 12 months and are currently employed or not employed and those who expect to graduate or complete their education program and are either employed or not employed. The data were collected via mobile devices.