How Many People Use Their Degrees in 2024? Just 27%!

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How many people use their degrees in 2024? According to a study, only 27% of people use their degrees. This means a majority of degree holders are not working in fields related to their education. With high costs and effort required to earn degrees, it‘s concerning many cannot utilize them in careers.

In this article, we‘ll break down degree usage statistics in detail. We‘ll look at differences between genders, generations, fields of study, costs, and more. Read on for a comprehensive analysis based on recent labor market research.

Only 27% of Degree Holders Use Their Credentials

In our modern information age, do college degrees even matter when so much knowledge is available online?

According to a study by the New York Federal Reserve Bank, only 27% of graduates are working in jobs matching their college major. This analysis covered six broad fields: languages and philosophy, social sciences, business, communications, and information technology.

The data reveals a troubling gap between education and actual careers. With the high costs of earning degrees, students expect to recoup their investment by working in related roles.

However, statistics clearly show this is often not the case. Many end up in unrelated jobs or fields, unable to utilize their specialized education fully.

41% of Men Don‘t Use Their Degrees

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For men, the statistics are even more concerning. A significant 41.1% reported not using their degrees at all.

25.1% said they couldn‘t find suitable jobs matching their education. The remaining 16% chose different career paths willingly. However, it‘s likely many in this group did so after struggling to find relevant work.

Men tend to dominate STEM degree programs in technology, engineering, mathematics, and sciences. These fields supposedly have plentiful jobs, often touted as sure paths to employment.

Yet nearly half of men with STEM degrees don‘t end up in related careers. This suggests major gaps between higher education and the actual job market.

40% of Women Don‘t Use Their Degrees

For women, the situation is similar. Approximately 40% are not utilizing their degrees in the workplace.

The primary reason is the inability to find jobs in their field of study. A full 31% of women with degrees reported this challenge.

The remaining 9% willingly chose alternate career paths, but likely only after facing difficulties matching their education to jobs.

Notably, women earn more degrees proportionally than men. Yet they struggle similarly to translate those credentials into relevant careers.

What are Academic Degrees?

Before proceeding, let‘s define what academic degrees are and the various types available:

• Associate Degrees: 2-year programs preparing students for entry-level careers.

• Bachelor‘s Degrees: The most common degree, typically requiring 4 years of study.

• Master‘s Degrees: Advanced degrees for graduate-level specialization.

• Doctoral Degrees: High-level credentials focused on research and academic study.

• Professional Degrees: Degrees leading to licenses or certifications for careers like law, medicine, etc.

Each degree requires varying time commitments and financial investments from students. But they share the common goal of developing expertise in a field to prepare for a career.

When graduates cannot obtain jobs matching their education, it undermines the value proposition of degree programs.

72% of Millennials Have Degrees

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Of all generations, Millennials have the highest educational attainment. 72% of those born between 1981-1996 have college degrees.

However, 38.6% of Millennials with degrees don‘t work in related fields. 25.5% specifically reported being unable to find suitable jobs matching their education.

This illustrates a persistent gap between higher education and actual jobs amongst Millennial degree holders. Many start careers with large debt burdens from education but cannot utilize their credentials.

64% of Gen Xers Have Degrees

Like Millennials, Gen X has high educational achievement with 64.3% holding degrees.

But once again, nearly a third (29.9%) say they are underemployed. Their degrees do not match their actual jobs and career fields.

This suggests the issue of education-job mismatches spans generations and is not merely a youth problem. Mid-career degree holders still struggle to fully apply their credentials.

53% of Baby Boomers Have Degrees

Baby Boomers or those born between 1946-1964 have lower degrees rates overall at just 53.2%.

Yet remarkably, 47% of Baby Boomer degree holders say they have not or do not currently use their degrees. That nearly half cannot utilize their education in late career stages indicates a systemic, persistent issue.

Unemployment Remains High Globally

Unemployment worldwide in the last decade reveals why degree holders struggle to find jobs:

• 2011 – 184 million unemployed
• 2012 – 185 million unemployed
• 2013 – 184 million unemployed
• 2014 – 184 million unemployed
• 2015 – 187 million unemployed
• 2016 – 190 million unemployed
• 2017 – 189 million unemployed
• 2018 – 185 million unemployed
• 2019 – 186 million unemployed
• 2020 – 224 million unemployed
• 2021 – 214 million unemployed

Unemployment skyrocketed in 2020/2021 due to the COVID-19 pandemic. But even before, it persisted at high levels annually. These conditions make it exceedingly difficult for graduates to obtain jobs, even those well-matched to credentials.

Advanced degrees once helped differentiate candidates. But with so many graduates today, competition is fierce even for specialized roles.

Most Expensive Degrees

Beyond time investments, academic degrees require huge financial investments as well:

• Bachelor‘s in Arts: $320,000 at Sarah Lawrence College

• Bachelor‘s in Science: $320,000 at Harvey Mudd College

• Executive MBA: $312,000 at Wharton School, Univ. of Pennsylvania

• Doctor of Medicine: $290,000 at Columbia University

• Bachelor‘s in Music: $288,000 at Bard College

These costs reflect the skyrocketing price of higher education. Yet as we‘ve seen, expensive degrees are often underutilized or worthless in the job market.

Most Expensive Universities for Degrees

Certain elite universities charge even higher prices, ranked here from most to least expensive with estimated annual costs:

1. Dartmouth College – $81,000
2. New York University – $80,000
3. Harvey Mudd College – $79,000
4. Johns Hopkins University – $59,000-$73,000
5. University of Chicago – $57,000

Yet graduates from these prestigious, high-cost schools still struggle to find degree-relevant jobs, on par with other institutions.

Elite credentials do not guarantee graduates the careers they expect. Outcomes remain dependent on overall economic conditions.

U.S. Student Loan Debt: $1.7 Trillion

To cover exorbitant tuition costs, students borrow at record levels. Total U.S. student loan debt recently exceeded $1.7 trillion collectively.

Over 45 million Americans carry this crippling debt burden. For comparison, total U.S. credit card debt stands at $841 billion.

This massive debt severely impacts graduates. Most expect to repay loans through higher earnings in degree-related careers. Yet as we‘ve seen, this is often impossible due to degree irrelevance and unemployment.

Key Takeaways

Given statistics presented in this analysis, key takeaways include:

• Only 27% of graduates utilize their degrees in corresponding careers.

• High unemployment globally makes degree-relevant jobs scarce.

• Prohibitive education costs saddle graduates with massive debts.

• Degrees often fail to provide expected career advantages.

• Outcomes remain inconsistent across gender, generations, and institution types.

These findings should give students pause when considering higher education. While potentially worthwhile, degrees do not guarantee expected benefits.

One must carefully weigh costs against likely outcomes based on real-world job statistics. This helps set realistic expectations for education as an investment.

Deciding on a Degree?

For those considering pursuing higher education, thorough research is essential before committing.

• Analyze real-world job openings relevant to intended majors.

• Understand salary ranges, job security, and advancement potential.

• Weigh benefits against tuition costs, debts incurred, and years invested.

Most importantly, identify your motivations, talents, and goals. Search for the best educational fit aligned with these, rather than general degree trends.

An informed, strategic approach helps ensure your degree yields maximum career impact. Education is still worthwhile when matched to realistic objectives for your future.

Conclusion

The value of academic degrees is dubious based on current data. Only 27% of graduates obtain jobs related to their education.

Yet costs continue rising astronomically, along with student loan debt. Graduates take major risks but see inconsistent career results from degrees.

Still, higher education can prove worthwhile with prudent planning. Carefully research fields and tailor studies to your talents before investing significant time and money.

With strategic forethought, a degree can help you access more meaningful, engaging work aligned with personal goals. But pursue education as a means rather than an end itself to ensure optimal outcomes.

Sources

New York Federal Reserve: https://www.newyorkfed.org/research/college-labor-market/college-labor-market_underemployment_rates.html

U.S. Unemployment Data: https://data.worldbank.org/indicator/SL.UEM.TOTL.ZS

College Tuition Data: https://www.finder.com + Various Individual College Websites

U.S. Student Loan Debt Statistics: https://www.nerdwallet.com/article/loans/student-loans/student-loan-debt