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Economists have referred to this phenomenon as degree inflation, and it has been steadily infiltrating Americas job market. Across industries and geographic areas, many other jobs that didnt used to require a diploma positions like dental hygienists, cargo agents, clerks and claims adjusters are increasingly requiring one...
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I am over $100,000 in student loan debt right now, said Megan Parker, who earns $37,000 as the firms receptionist.
<p>I think this is at least partly a result of the recession. Firms got hundreds of applications for a file clerk intern job (not kidding, one of my clients had this issue just last year). They can afford to pick someone with more credentials for the same price they used to pay for someone without a degree. I don’t think the cost of college is going to change this. But I think if the labor market tightens up, firms will lower this standard again. Not happening real soon, I am guessing…</p>
<p>Well, Megan, you should have been smarter about your school costs. If you had to take out $100,000 in UG debt, you went to the wrong school. Perhaps that lack of foresight is why you are working as a file clerk…</p>
<p>These sensationalist stories are getting VERY old. The average student loan debt nationally is $27,000 (not quite even). The average starting salary for a recent grad with a BA/BS is $44,259. 27K is a manageable debt load at that income level if you have to max your federal debt. Going over that in an iffy market is just plain stupid. Now, if you are in a job market with good prospects and your starting salary is in the $100,000 range with a BA/BS, ok, take on that debt load–and let the rest of us know what field that is is so we can push our kids to that job!</p>
<p>I work in BigLaw and have no degree. I am very, very lucky in that I’m good at my job and was able to be promoted to current position because of special circumstances, but it’s not that funny to see middle-aged or older receptionists, file clerks, secretaries, accounting clerks, who have done a good job for many years displaced by younger workers who think the jobs are beneath them just because they have a credential. I understand the why, but I’m not sure it makes sense for anyone. Employers get employees who have no loyalty and will ditch as soon as possible, older workers with real expertise and institutional knowledge lose their jobs, and young people waste their time in jobs they hate and that do nothing for them.</p>
<p>cromette, in some fields that just doesn’t happen anymore. Look on Monster when you have a chance and you will see that some fields hire for absolutely nothing without a degree and you can’t even get your resume viewed without it.</p>
<p>True, SteveMA, but employers didn’t really need to be loyal, they just needed to be solvent. Profitability is not helped by employees who don’t want to be there and are actively looking to move.</p>
<p>Oh yes it is. Yes it surely is. And when enough of the oldtimers have gone, it will be problematic in many places. Very short-sighted.
On the other hand, the young people aren’t villains, either. There should be a place for both types of employee in the workforce.</p>
<p>Also keep in mind that most employers are looking down the road and no, that customer service position doesn’t “need” a college degree to do the work, but the next promotion does, or one down the line. Most entry level jobs, even though they don’t require a degree to complete the work, the degree does tell an employer that they can start what they finish, they are teachable, they can handle complex tasks and they don’t need to be babysat while on the job. It isn’t so much that you know how to run their computer system the first day on the job or you know how to do all the details of the job from the get go, but they want people that can LEARN to do that. That’s not saying that people without degrees can’t do all of the above, but what in their resume shows an employer that they can if they have a high school diploma and nothing else?</p>
<p>Agreed, Steve, except that some of these young people CAN demonstrate tenacity. For example, 5 years of employment at the same place, stellar grades in high school, there are many ways to show that you are a reliable person that learns quickly other than a college degree. I agree that people should go get that degree.</p>
<p>I also believe that EMPLOYERS should not always be looking for the obvious answer. You might miss a diamond in the rough.</p>
<p>SteveMA, I’m not talking about credentialed versus uncredentialed entry level employees. The young people are displacing experienced workers. If all other things were equal, the degree would be very consequential, but in many fields that is not the case.</p>
<p>cromette–true, but honestly, sometimes there just isn’t time to wait or enough hours in the day to find that diamond. I suggest for kids that chose not to get a degree that they work through a temp agency, get some assignments doing ANYTHING, get some credibility behind your work ethic and then apply for these “needs degree” jobs. In this day and age, a student that doesn’t even go to a community college is pretty suspect for job prospects. It is what it is.</p>
<p>zoosermom–money…they can pay someone $100,000 to do a job or $40,000. If it means hiring 2 $40,000 workers to do the job of the $100,000 worker–but keeping all the rest of your staff—well, hard choice but sometimes it has to be done.</p>
<p>One company near us had an employee meeting–all employees in a huge conference center. This was back in 2009. They had 1/3rd of the room stand up and told everyone to look around. They said they had 2 choices-either they fire all the people standing up and keep contributing to the 401K’s or everyone keeps their job and they were suspending 401K matches for 3 years. They then took a vote. Most people, fortunately, voted for to suspend the match. I’m sure the CEO didn’t want to make that hard choice…but sometimes you have to do what you have to do.</p>
<p>SteveMA, you’re absolutely right about hard choices, but it’s a function of the terrible economy. If the economy were booming, those grads would be expecting career positions, not pass-throughs, and employers would be happy to have good, experienced employees.</p>
<p>The story may be getting old, but for the kids that are degreed already without work, or get no response black hole resume submissions, it sucks. </p>
<p>I know a hiring manager for a Fortune 500 company, he said the human resource people are NOt doing their jobs. He is getting second round interviews with people with phony degrees, phony resumes, zero presentation skills. He has does not know HOW they have even gotten to him, a waste of time for both parties. This is not the first hiring manager I have heard this from.
When kids do not take on ridiculous debt, have stellar resumes, applicable skill set, qualify for any entry level job based on skill set, yet can not get past the spider resume/human resource drones, what is left but to complain.
So as they say unless you walk in their shoes, or it is your child. </p>
<p>No one is denying the utility of a degree, but the stupidity of what is going on out in the new grad job field, is worthy of some serious change.</p>