Ready for Work? How Recent Grads Feel About Their Employability

As employers struggle to fill open positions and find talent, the value of the college degree has been called into question by many potential students and their parents. The Bureau of Labor Statistics says there are now two job openings in the U.S. for every person looking for a job. Key roles in every sector, from cybersecurity to healthcare and transportation, are sitting open, bringing new risks to businesses and the general public. In response to the hiring crisis, many employers are starting to get creative with how—and who—they hire, including dropping the four-year degree requirement for some roles. It’s predicted that 1.4 million jobs could open up to workers without college degrees in the next five years, and employers like IBM and some state governments are already leading that charge.

There’s a lot of discussion around employability and workforce readiness, but we were curious to understand what graduates—of both degree programs (associate’s, bachelor’s and master’s) and non-degree programs (vocational, skills training)—have to say about it. After all, confidence in your own ability, skill set and credential type is a big part of the equation when it comes to whether you’re willing to put your resume forward for a job, or not.?

So, do today’s graduates believe they are employable? With the average degree graduate taking on $37,000 in student loan debt, do degree-holders think it was “worth it”? Do they think they have the durable skills they’ll need to hit the ground running? Here are a few things we’ve learned about the views of degree-holders and non-degree graduates about their own employability and a few lessons we can learn from them.

Many - whether they went to college or not - are worried they made the wrong choice

Over half (55%) of traditional degree graduates think they should have switched majors, but felt it was too late to do so when they realized it. And whether they went to college or not, young adults are uncertain as to whether they made the right decision. Only a quarter of those surveyed (from both degree and non-degree programs) said they would choose the same path if they could do it over again.?

What’s more, 74% of traditional degree grads agreed that the higher education system needs to evolve to shorter, workforce aligned programs that allow students to earn credentials that can be stacked over time toward a degree.

College grads find jobs faster than non-degree grads

It’s a hot hiring market, so it’s understandable that 60% of all graduates found a job within 12 months, compared to 41% in 2021. In 2022, graduates with traditional degrees tended to find jobs faster (68% found a job within 12 months, compared to 53% of non-degree graduates).

Half of all graduates feel underqualified for entry-level jobs but digital learning tools can help fill the gap

When looking at potential jobs, 39% of recent grads (both college and non-degree) said they feel they have “some but not all” of the skills listed in the job description, and around half of all grads (53% of degree and 49% of non-degree) said they had not applied to an entry-level job in their field because they felt underqualified. The most common job function skills young adults felt they lacked were specific job function skills (such as coding), followed by time management. One thing students see filling the gap is digital learning tools. In fact, 71% of traditional degree grads believe access to digital learning tools (such as our own MindTap) in their courses helped them develop key employability skills, such as critical thinking and problem solving.?

Graduates are confused about the market value of their credentials

About half ( 41%) of traditional degree graduates think their degree signals job-readiness to employers, while 49% of non-degree graduates think a skill-based credential is a stronger signal of what employers want. More graduates today are saying they are being taught more key employability skills than just a year ago, though.?

The takeaway for higher education?

It’s pretty clear that there’s a lot of self-doubt and confusion among recent graduates of both college and non-degree programs. But the self-doubt of recent graduates, in light of the needs of the labor market today, may also be a reflection of the enormity of the moment when a young adult moves out on their own and joins the workforce than of their actual preparedness to do so. Most graduates are still saying that their program has let them lead a better life, and college grads continue to find jobs faster than non-degree grads.

This uncertainty should still be taken seriously by institutions of all types. Both college and non-degree programs can to do a better job of preparing graduates with real-world skills. Colleges in particular can spend more time helping students understand how their degree would translate to a job, and the value of that degree in terms of placement rates. Finding ways to give students more exposure to work experiences and helping them understand how lucrative different fields of study are could also help students feel more confident upon graduation.?

On the flip side, employers need to be willing to fill gaps with additional skills - and they are. With more employers now starting to offer on-the-job training and upskilling opportunities, there’s no reason college grads can’t pursue good jobs, regardless of the skills they think they lack. The appetite for this approach is high among college graduates; almost all (95%) said they would pursue online training if their employer covered the cost.?

The takeaway for us

We did this research to help educators and institutions, but also to help us build better products to support them in their goals. From previous research on employability, we added a “How Transferable Are Your Skills?” activity to MindTap, which gives students a job description and asks them to relate their skills to different workplace challenges. We also added Career Focus boxes to different aspects of courses, explaining things like “Why I need to know chemistry” so students can make connections between theory and reality. And we have a virtual Career Center for Cengage Unlimited, created with career coach Ashley Stahl. We will be using the results of this study to help us continue to improve the course materials we create to give students the skills and confidence they need to be - and feel - employable.

Ready to work?

It’s important that educators understand the reservations graduates of both college and non-degree programs feel about entering the workforce. Institutions and credentialing programs can also do a better job helping graduates translate what they learned in their into what that means for the workplace. On top of that, graduates should be encouraged to learn the value they do and can bring.?

The lingering question from this research is this: are students just worried about their employability, or are employers actually seeing gaps in the readiness of recent graduates to fill entry level jobs? Find out in part 2 of this study, in which we’ll see how employers feel about the employability of recent graduates.

Read the full report

Note:?All findings from (Not) Ready for the Workforce: Today’s Graduates Face Stigma and Regret: A Cengage Survey Examining the Readiness of Traditional Degree and Non-Degree Graduates. (Cengage, 2022.) ?