Americans are questioning the inherent value of higher education, and the rise of skills-based hiring across the workforce is adding to the debate.
A recent Pew Research Center report reveals that Americans hold mixed views on whether a four-year college degree is worth the financial burden. Nearly half, or 47%, believe that the benefits of a degree justify its cost only if student loans are not required, while 22% deem it worthwhile even with loans.
The financial outlook for young adults without degrees has shown signs of improvement over the past decade. The data reveals that wages for young U.S. workers (defined as ages 25 to 34) without a bachelor’s degree have increased, and fewer are living in poverty.
Despite these economic gains, the earnings gap between those with and without a college degree remains noteworthy.
The data shows that young men and women without college degrees have seen improvements, with median annual earnings for young women without a degree rising over the past decade and young men experiencing more stabilized labor force participation, as well as an increased full-time employment since the Great Recession.
“The shares of young women with and without a college degree in the labor force grew steadily from 1970 to about 1990,” according to the Pew Research report. “Among those without a college degree, the share fell after 2000, and the drop-off was especially sharp for young women with a high school diploma. Since 2014, labor force participation for both groups of young women has increased.”
Despite these gains, the public remains skeptical about the necessity of a college degree for career success, with only a quarter of Americans reportedly viewing it as critical for obtaining a high-paying job.
As tuition costs and student debt rise, only about a third of four-year college graduates, or 32%, believe college is worth the cost if loans are required.
While graduates are more likely than non-graduates to find their education useful in securing well-paying jobs, Pew Research reports that it does not fully alleviate concerns about the financial burden of higher education.
