Data Reveals a Troubling 52% of Recent Four-Year College Grads Are Underemployed

New data could have young professionals preparing to enter the workforce questioning the value of higher education, and whether receiving a four-year degree is worth the investment of time and money.  

According to a recent report published by Strada Education Foundation and Burning Glass Institute, 52% of recent four-year college graduates are underemployed within a year of graduating from college as they struggle to find employment that matches their education level. 

It’s reported that even a decade after graduation, underemployment persisted for 45% of college graduates. However, the report suggests that if graduates start out in a college-level job directly after graduating, 79% will remain in a college-level occupation five years after graduation.  

When analyzing demographics, the report reveals that underemployment is particularly pronounced among Black graduates, with 60% experiencing underemployment one year after graduation — compared to 57% of Hispanic and Latino graduates, 53% of white graduates, and 47 percent of Asian graduates.  

The kind of institution attended by the student also plays a role, with graduates from more selective schools that serve fewer low-income students being less likely to be underemployed, according to a report published by Inside Higher Ed.  

The research also reveals a strong link between landing an internship and college-level employment after graduation.  

According to the report, “Controlling for factors such as gender, race/ethnicity, and institutional characteristics, the odds of underemployment for graduates who had at least one internship are 48.5 percent lower than those who had no internships, and the benefits associated with completing an internship are relatively strong across degree fields.” 

To help combat the substantial underemployment in the workforce, the report suggests several measures for policy makers and institution leaders. These suggestions include:  

• Increasing access to paid internships for students.   
• Providing transparent employment outcomes data.  
• Offering comprehensive career coaching. 
• Facilitating access to high-demand career paths.  

Researchers believe these recommendations better align higher education with the evolving job market and ensure that graduates can fully utilize their degrees in their chosen career fields.