Information gathered by Sheila J. Curran, March, 2009, revised July, 2012
Across the country, colleges and universities are re-thinking goals and aspirations in light of diminishing revenues and falling endowments. At the same time, prospective students and their families increasingly seek an economic value for their tuition investment. These realities conflict when it comes to providing exceptional career assistance to students and alumni. The following data support the assertion that colleges and universities need to focus not only on student learning outcomes, but also on ensuring the success of their graduates.
DATA ON COLLEGE GRADUATES (Bachelor’s degree and above)
Source: Chart A-4, Employment status of the college-educated civilian population 25 years and over, Bureau of Labor Statistics
• Unemployment rate 4.6% for college graduates over age 25 (June, 2012)
• Unemployment rate 5% for college graduates over age 25 (June, 2011)
• Unemployment rate 5.1% for college graduates over age 25 (June, 2010)
• Unemployment rate 5.5% for college graduates over age 25 (June, 2009)
• Unemployment rate 2.5% for college graduates over age 25 (June, 2008)
• 100% increase in unemployment over 4 years (June, 2008 – June, 2012)
• Highest unemployment rate among college graduates over 25: 5.9% in February, 2010; Lowest unemployment rate among college graduates over 25: 1.4% in December 2000
Source: BLS Table Ten (unpublished), Employment status of college and high school graduates under the age of 25, Bureau of Labor Statistics
• Unemployment rate for bachelors’ degree college graduates under the age of 25 was 9.9% in July, 2012 vs. 12% in July, 2011 vs. 10.9% in July, 2010 vs. 10.8% in July, 2009 vs. 6.5% in July, 2008, a 52% increase over the past four years.
• 30,000 more bachelor’s degree grads under 25 are currently unemployed than at this time last year (July, 2012 vs. July, 2011).
• 197,000 more bachelor’s degree grads under 25 are currently employed than at this time last year (April, 2012 vs. April, 2011).
• Unemployment rates for high school graduates with no college were 18.4% in July, 2012 vs. 18.2% in July, 2011, vs. 20.7% in July, 2010 vs 19.3% in July, 2009 vs. 12.9% in July, 2008. This represents a 42.6% increase over the last four years.
Source: National Association of Colleges and Employers, National Association of Colleges and Employers, November 2010 information from Job Outlook 2011. Data was collected from 172 companies.
• Employers intend to increase entry-level hiring of college graduates by 13.5% in 2011, after a 5.3% increase in 2010, and a 22% decrease in 2008
• 19.7% of college graduates who applied for a job in 2009, actually have one by graduation. (News release, May 6, 2009, from NACE 2009 Student Survey.) This figure compares to 26% in the Class of 2008 and 51% of the Class of 2007
• 27% of the Class of 2009 planned to go on to further education (NACE 2009 Student Survey)
Sheila Curran prediction for the Class of 2009, made January, 2009: 70% of those students who wanted jobs would not have one lined up by graduation, and 30% of the Class of 2009 who wanted jobs would still be looking for appropriate work when the Class of 2010 graduates. These estimates are based on NACE statistics, statistics from Michigan State, observation of student behavior and career center informal reports from across the country.
Source: Unemployment at Highest Rate in over 25 years, Economic Policy Institute, March 6, 2009
“…more than one in seven workers in this country—an estimated 23.1 million people—was either unemployed or underemployed in February . Since the start of the recession, the number of involuntary part-time workers has increased by 4 million, from 4.6 million to 8.6 million.
Long-term unemployment—the share of the unemployed who have been without a job for more than six months—also remained high at 23.1%, which is unsurprising given that there are currently over 4 unemployed workers per job opening last month. In this labor market, unemployed workers are seeing their chances of finding a job grow ever dimmer”
Degrees conferred in FY08
• 1,563,075 students graduated with a bachelor’s degree in 2008
• 626,397 students graduated with a master’s degree in 2008 and
• 84,960 students graduated with a PhD in 2008
• 155,625 of the students graduating with a master’s degree studied Business, Management or Marketing
• 32,387 graduated with a J.D.
• 13,025 graduated with an M.D.
In FY08, 43% of students enrolled full-time in 4-year colleges also worked. Over a quarter of all students enrolled full-time in 4-year colleges worked more 20 hours per week.
DATA ON PROSPECTIVE STUDENT/PARENTAL EXPECTATIONS
Source: Key Drivers of Educational Value: The Emergence of Educational ROI, Eduventures, December 2006, 6000+ respondents
Leading drivers of educational value among freshmen are
• professional preparation (72%)
• strength of the academic program (62%), and
• affordability (47%)
Source: Messaging the Attributes of Academic Reputation, Eduventures, 2007
240 prospective students, question about expectations of their selected college, Scale of 1-7, with an answer of 7 meaning that it is most likely a selected college would lead to this result
• Ability to develop a career in which I will enjoy working: 6.3
• Ability to find a job quickly after graduation: 6.2
• Ability to get into graduate or professional school of my choice: 6.0
• Ability to develop a career that will provide a good salary: 6.0
• Ability to repay student loans: 5.7
Source: The American Freshman: National Norms for Fall, 2009, University of California, Los Angeles Higher Education Research Institute
Reasons noted as very important in selecting college attended (2008 figures in parentheses:
• This college’s graduates get good jobs: 56.5% (54.8%)
• The cost of attending this college: 41.6% (39.9%)
• A visit to campus: 41.4% (41.4%)
• I wanted to go to a school about the size of this college: 39.8% (38.5%)
• This college’s graduates gain admission to top graduate/professional schools: 34.6% (35.1%)
THE COST OF HIGHER EDUCATION AND THE ECONOMIC VALUE OF A COLLEGE DEGREE
Source: Bureau of Labor Statistics, (Sheila Curran analysis on the five-year period between 2004 and 2008)
• The median average salary for a college graduate (bachelor’s degree only) rose from $19474 to $22033
• The average annual percentage increase in salary between 2004 and 2008 for a college graduate was 2.6%
•The average increase in inflation between 2004 and 2008 was 3.2%
Number of non-profit 4-year Colleges/Universities in US: 2204
Costs, including tuition, fees, accommodation, transportation, books
(FY09 data in parentheses)
• Average cost of private 4-year college: $39,028 ($37,390);4.38% increase
• Average cost of public 4-year colleges (out-of-state): 30,916 ($29,193); 5.9% increase
• Average cost of public 4-year colleges (in-state): $19,388 ($18,326); 5.79% increase
Source: Trends in Higher Education Series, 2007, Table 3a, College Board
“The average annual rate of increase [college tuition] during this period [1997-98 to 2007-08] was 5.6%–2.9% after adjusting for inflation.”
Source: Up, Up, and Away, Boston.com, October 5, 2008
“For the first time in history,…the price of a year at these schools [Boston College, Boston University] and many others has surpassed the median US household income of $50,233”
Source: Bureau of Labor Statistics, BLS, Last modified March 29, 2011, from BLS Table 10 data for December, 2008 and December, 2010.
Unemployment Rate in December 2010, vs. Unemployment Rate in December, 2008
Data is from the Bureau of Labor Statistics and is for graduates over the age of 25.
Bachelor’s degree, 2010: 5.3% (2008: 3.6%); 2010 under 25: 9.6%
Associate degree, 2010: 6.3% (2008: 4.3%); 2010 under 25: 7.9%
High school graduate, 2010: 10% (2008: 7.9%); 2010 under 25: 19%
Less than a high school diploma, 2010: 16.2% (2008: 12.1%); 2010 under 25: 25.8%
Annual Earnings in 2010 vs. 2008, based on December datafrom CPS
Bachelor’s degree: $53,976 in 2010 vs. $52,624 in 2008, a 2.5% increase
Associate degree:$38,168 in 2010 vs. $37, 544 in 2008, a 1.6% increase
High school graduate: $32,552 in 2010 vs. $32,136 in 2008, a 1.3% increase
Less than a high school diploma: $23,088 in 2010 vs. 23,556 in 2008, a 1.9% decrease
Source: Research, 2006-2007, National Association of Colleges and Universities (NACE),512 institutions responded and NACE 2011 Career Services Benchmark Survey, 750 colleges and universities responded.
# of Careers Offices reporting to Student Affairs: 67.1% in FY07; 63.6% in FY11
# of Careers Offices reporting to Academic Affairs: 17.7% in FY07; 24% in FY11
35% more careers offices are reporting to Academic Affairs in FY11 than did so in FY07
Source: NACE Research Job Outlook 2011: From the section titled What Employers Want: Candidate Skills and Qualities.
1. Communication skills (verbal)
2. Strong work ethic
3. Teamwork skills
4. Analytical skills
6. Problem solving skills
7. Communication skills (written)
8. Interpersonal skills
9. Computer skills
The biggest gaps between skill sets required and skill sets demonstrated by new graduates (as perceived by employers) are:
1. Interpersonal skills
2. Strong work ethic
4. Verbal communication skills
Students’ computer skills are most in line with employer requirements.
In choosing between two candidates with equivalent skills, the following factors come into play:
1. Relevant work experience
2. Experience in a leadership capacity
4. High GPA
5. Involvement in extra-curricular activities
6. School attended
7. Volunteer involvement
Source: Doing More with Less, Development Learning Collaborative Roundtable, Eduventures, February 20, 2009. 33 respondents. Polling question on “What services is your institution increasing for alumni in response to the economy”.
• Online/Social Networking: 76%
• Alumni Networking Events: 64%
• Career counseling/advising: 48%
CAREER OUTCOMES FOR THE COLLEGE GRAD
75% of those who wanted jobs found jobs within six months of graduation
27% have remained with the same company
43% are in a different career field than the one they entered immediately after graduation
44% are still not sure they are in the right career field
They have held an average of 2.79 jobs each
50% of the time, they found jobs through personal connections
60% of the time, their career choices were influenced somewhat or a great deal by their parents
The most useful skills gained through their college education were
• Organizational leadership
Source: 70% of Gen Y Leave First Job within Two Years, Experience, Inc., September, 2008
70% of recent graduates left their job within two years of their joining
43% are not in the career they expected to be in after college
60% are currently looking for another job or career
57% report being happy in their current job
74% of recent graduates are in a career that aligns with their college major