University degree no longer comes with promise of stable job

The unwritten promise of a post-secondary education has been to earn a degree in an applied field such as engineering and you’ll end up with a good, stable job, but the millennial generation is finding that can no longer be counted on. I have been thinking about this issue for some time. Last year, I posted an article on this blog by Robert Reich, Professor of Economics at UC Berkeley and former Secretary of Labor under Bill Clinton. I was stimulated to share that article by what I was seeing with my own students from the University of British Columbia, and contrasting that with my own experience years ago, walking into my Silicon Valley dream career by sheer chance. That simply no longer happens. Grads must begin plotting out a plan early, no later than the beginning of their third year, and begin to execute on it in order to find an entry-level position commensurate with their education. Networking and cold calling is imperative, but as this article points out, even that may not guarantee solid employment.


The unwritten promise of a post-secondary education has been to earn a degree in an applied field such as engineering and you’ll end up with a good, stable job, but the millennial generation is finding that can no longer be counted on. I have been thinking about this issue for some time. Last year, I posted an article on this blog by Robert Reich, Professor of Economics at UC Berkeley and former Secretary of Labor under Bill Clinton. I was stimulated to share that article by what I was seeing with my own students from the University of British Columbia and their struggles, and contrasting that with my own experience years ago, walking into my Silicon Valley dream career by sheer chance. That simply no longer happens. Grads must begin plotting out a plan early, no later than the beginning of their third year, and begin to execute on it in order to find an entry-level position commensurate with their education. Networking and cold calling are imperative, but as this article points out, even that may not guarantee solid employment. 

Source CBC News/Business: ‘It’s not a guarantee’: University degree no longer comes with promise of stable job

‘The millennial side hustle,’ not stable job, is the new reality for university grads

Recent graduates are finding a post-secondary education is no longer a guarantee of stable employment

By Nick Purdon and Leonardo Palleja, CBC News Posted: Mar 12, 2017 5:00 AM ET Last Updated: Mar 12, 2017 5:00 AM ET

Christian McCrave, 21, stands in front of his parents' house in London, Ont. He moved back in when he couldn't find a job after graduating with a degree in mechanical engineering.

Christian McCrave, 21, stands in front of his parents’ house in London, Ont. He moved back in when he couldn’t find a job after graduating with a degree in mechanical engineering. (Nick Purdon/CBC)

Twenty-one-year old Christian McCrave feels like he did his part.

He got good grades in high school and completed a four-year degree at the University of Guelph in southwestern Ontario. He studied mechanical engineering, in part because he thought it would land him a job.

It hasn’t.

“I actually thought that coming out of school that I would be a commodity and someone would want me,” McCrave said. “But instead, I got hit with a wall of being not wanted whatsoever in the industry.”

McCrave says he believed in the unwritten promise of a post-secondary education: work hard at school, and you’ll end up with a good and stable job.

Now, he’s not so sure.

“Being unemployed while having a degree is kind of a kick in the face,” McCrave said. “If anything, it’s a setback. You have all this debt and this degree, and everyone has one, but it doesn’t get you further in life sometimes.”

Since graduating last year, McCrave has applied for 250 engineering jobs, but he’s only had four interviews and no job offer.

McCrave isn’t alone. More than 12 per cent of Canadians between the ages of 15 and 24 are unemployed and more than a quarter are underemployed, meaning they have degrees but end up in jobs that don’t require them.

The latest numbers from Statistics Canada show that the unemployment rate for 15-to-24-year-olds is almost twice that of the general population.

McCrave has expanded his job search to include retail and recently applied to work at the local Sobeys grocery store near his parent’s house in London, Ont., where he has lived since soon after graduation.

“It’s a job. Something to feel accomplished from,” said McCrave. “As much as an engineer can be accomplished by cutting deli meats.”

Co-ops, apprenticeships key to employability

The challenge McCrave faces is experience: namely, he doesn’t have any. The most recent work experience on his resume is sales associate at Winners.

Sandro Perruzza, the chief executive officer at the Ontario Society of Professional Engineers (OSPE), is familiar with graduates like McCrave.

Christian McCrave 2

Since graduating, McCrave has applied for 250 engineering jobs but hasn’t had a single offer, he says. (Leonardo Palleja/CBC )

“He could have applied for co-ops or apprenticeships while he was at school — even if it delayed his graduation,” Perruzza said. “We strongly advocate co-ops. The fact is because of the sheer number of applicants these days, the ones who get the jobs have some kind of experience.”

Should McCrave land one of the retail jobs he’s applied for, he’ll achieve one of the hallmarks of his generation: underemployment.

‘With millennials, the idea is that we are lazy and that we don’t work hard and stuff is given to us.’– Christian McCrave, 21, engineering graduate

A 2014 Canadian Teachers’ Federation report found nearly a quarter of Canada’s youth are either unemployed, working less than they want or have given up looking for work entirely.

The number of engineers in Ontario who are underemployed is 33 per cent, according to the OSPE.

Still, McCrave says he often hears it’s his own fault that he’s unemployed.

“With millennials, the idea is that we are lazy and that we don’t work hard and stuff is given to us — the idea of the participation award,” McCrave said. “We didn’t want the participation award. We didn’t want to be told we are not good enough but here’s an award anyways. We want to compete; we want to succeed.”

‘The millennial side hustle’

Fast forward a few years in the job trajectory of the millennial generation, and you’ll find Clair Parker. Parker, 26, has a political science degree from Carleton University in Ottawa and a certificate in public relations from Humber College in Toronto.

“I live in an apartment, I have three roommates, and I don’t have benefits,” said Parker. “If I were the exception, I would feel upset about that because I would feel that I had done something wrong, but I am not the exception. I am the norm.”

Clair Parker

Clair Parker might not be making direct use of her political science degree at her job as a bartender at a small Toronto brewery, but don’t call her underemployed. ‘It implies just the [job] title means more than what is going on in the workplace,’ she says. (Nick Purdon/CBC)

Parker’s bartending job doesn’t pay enough to make ends meet so she cobbles together enough money to live in Toronto by also working at a yoga studio and house sitting.

“I joke with my friends all the time about the millennial side hustle,” Parker says. “We all have different side hustles that we do to get money. So many people who would have worked in-house for a company before are freelancing now.”

The millennial side hustle (also known as the gig economy) means no steady job but also no safety net.

“If you have a toothache now and you are 24 years old, you freak out,” says Parker. “That’s going to be a couple of grand when you go to the dentist for the first time. I think people are going to feel really disenfranchised by the workforce and uncared for by the workforce.”

Parker works primarily at Halo brewery in Toronto, bartending and doing whatever else is needed to keep the small business running.

Kimberly Ellis-Hale again

‘Being precariously employed takes its toll,’ says Ellis-Hale. (Leonardo Palleja/CBC)

“On paper, I am a bartender,” Parker says. “But anyone who has worked with a small business understands that it’s kind of an all hands on deck situation. You have a lot of opportunities to learn a lot of different things.”

Parker bristles at the suggestion that she is underemployed.

“I am not underemployed, and I kind of get offended when people say I am underemployed,” Parker says. “It implies that they know more about my situation than I know about my situation. It implies just the [job] title means more than what is going on in the workplace. It’s a huge assumption.”

While Parker probably could have gotten her job without five years of post-secondary education, she says her education will allow her to grow along with the business. She is banking on potential — her own and the company’s.

The university enrolment boom

The promise of higher education is alive and well in Canada. There are more university students than ever before. In 2015, there were more than two million students enrolled at Canadian universities and colleges, compared to almost 800,000 in 1980.

Kimberly Ellis-Hale 1

Kimberly Ellis-Hale has been teaching at Wilfrid Laurier University in Waterloo, Ont., since 1998 but still has to re-apply for her job every four months. (Leonardo Palleja/CBC)

“With a good education, you will have a good future. With a good education, you will have a good job,” said Kimberly Ellis-Hale, an instructor at Wilfrid Laurier University in Waterloo, Ont., who teaches sociology and other subjects. “And I think for past generations, it may have been [the case]. I think for future generations, it’s not a guarantee.”

Even though economic indicators that track employment reveal a trend toward more precarious jobs, Ellis-Hale says most of her students don’t see that as their future. She didn’t either, but that’s how things turned out.

‘I teach in a place that sells education as the path to a better and more secure life, and I don’t have a part of that life.’– Kimberly Ellis-Hale, contract faculty, Wilfrid Laurier University

Ellis-Hale is contract faculty, and even though she’s been teaching university courses at Laurier since 1998, she has to re-apply for her job every four months.

“I have very little job security,” Ellis-Hale said. “And being precariously employed takes its toll.”

Ellis-Hale’s two children are now grown up and live on their own, but she vividly remembers standing in the pharmacy when they were young trying to decide which child needed antibiotics the most.

“I couldn’t afford to purchase both of them,” Ellis-Hale says. “And how do you live with that? I teach in a university. I teach in a place that sells education as the path to a better and more secure life, and I don’t have a part of that life.”

Turning the promise into a guarantee

The University of Regina’s UR Guarantee program, launched in 2009, turns the unwritten promise of post-secondary education into an actual guarantee. If a student enrolled in the program doesn’t get a full-time job in their field within six months of graduation, they can return for a year of undergraduate study tuition-free.

“The reason we do this is we know that if students do all the things that are part of the program, they are going to be successful,” said Naomi Deren, associate director of student success at the university.

Naomi Deren

Noami Deren is the associate director of student success at the University of Regina and runs the school’s UR Guarantee program, which lets graduates return for a free year of study if they don’t get a job in their field within six months. (Leonardo Palleja/CBC)

Students from any department can enrol in the program and must complete career development training, including resume reviews and job interview seminars.

In their final year, students are required to network and complete a labour market overview in their chosen field. Their job search begins while they are still at school.

‘The average student doesn’t … do that preparation, isn’t thinking about their career in second year and is sort of left scrambling at the end of it.’-Naomi Deren, associate director of student success, University of Regina

“I really think that the average student doesn’t do all of that stuff, doesn’t do that preparation, isn’t thinking about their career in second year and is sort of left scrambling at the end of it,” Deren said.

Of the 120 students who have participated in the program only two have come back for the free year.

“Honestly, everyone else has found what they were looking for,” Deren said. “We have students who are teaching — they got full time contracts right out of university … We have students who are working in marketing, communications. We have a reporter for the Leader Post.”

Keeping students from dropping out

Jenna deBoth, 21, is in her fourth year of an education degree program at the University of Regina and all she can think about is graduating.

“I am so excited. I can’t wait to actually get out there and get a job,” she said.

Jenna deBoth final

Jenna deBoth, 21, says that without the University of Regina’s UR Guarantee program, she probably would have dropped out of university. Now, she’s about to graduate with an education degree. (Nick Purdon/CBC )

Still, deBoth, from the small town of Hudson Bay, Sask., almost didn’t make it past her first year of university. She credits the UR Guarantee program with keeping her from dropping out.

“I was absolutely terrified to be on campus because even though Regina is a small city, to me, it was huge,” deBoth said.

‘If I don’t get a job in my field? Well, I am gonna keep trying.’– Jenna deBoth, 21, 4th-year University of Regina student

DeBoth happened to see a poster advertising the UR Guarantee program. She signed up and within a few months, she was volunteering and had a growing circle of friends.

“We see ourselves in the beginning as high school guidance counsellors,” Deren said. “We make sure students are successful and are retained here at the university.”

Deren says retention rates among UR Guarantee students are 10 per cent higher than those of the general student population.

DeBoth hasn’t yet found a teaching job for the fall, and she admits she’s nervous about what’s out there.

“If I don’t get a job in my field? Well, I am gonna keep trying,” she said. “This is something that I am passionate about. I have made sure I have skills that will help me no matter where I go.”

The Heavily Discounted Value of a University Degree. What Has Happened?


When I graduated from a prestigious public university in California, my future was so bright I had to wear shades. Even with a seemingly worthless degree in the Humanities and Social Sciences, I managed to quickly land an entry-level management position at Intel Corporation, which became a rocket ride into the top marketing unit in the company, heavily populated with Ivy League MBA’s.  I also gained extensive international business experience which fueled my later career.  My former students know that I have repeatedly said in class and in student meetings that this would simply not happen today.  Employers today are swamped with applications from literally hundreds and thousands of graduates with credentials far better than mine at that time.  I know of one top graduate from UBC Faculty of Management from a few years ago, who entered the job market with very high hopes and expectations, but is still struggling to move beyond low paying hourly employment.  What has happened?

Robert Reich, Former U.S. Secretary of Labor in the Clinton Administration, and currently Chancellor’s Professor of Public Policy at the Goldman School of Public Policy at the University of California at Berkeley, details the problems with the economic value of university degree.  The points Reich makes are as relevant in Canada as in the United States.  “People with college degrees continue to earn far more than people without them. And that college “premium” keeps rising.  Last year, Americans with four-year college degrees earned on average 98 percent more per hour than people without college degrees.  In the early 1980s, graduates earned 64 percent more. So even though college costs are rising, the financial return to a college degree compared to not having one is rising even faster.”  So far so good.

Reich concludes, “But here’s the qualification, and it’s a big one. A college degree no longer guarantees a good job. The main reason it pays better than the job of someone without a degree is the latter’s wages are dropping,”  The value of a degree is actually decreasing.  This is the same economic inequality problem affecting all other aspects of the economy.  The very best of our graduates, those who are the most resourceful and motivated, will manage to succeed, but the vast majority will be on a slippery slope.  I have seen this in my time at UBC, and most students can look around and see the problem among their classmates.

Reposted from Salon, Tuesday, November 25, 2014:

Robert Reich: College gets you nowhere

The former secretary of labor examines why a degree no longer guarantees a well-playing job

Robert Reich: College gets you nowhere

 

This is the time of year when high school seniors apply to college, and when I get lots of mail about whether college is worth the cost.

The answer is unequivocally yes, but with one big qualification. I’ll come to the qualification in a moment but first the financial case for why it’s worth going to college.

Put simply, people with college degrees continue to earn far more than people without them. And that college “premium” keeps rising.

Last year, Americans with four-year college degrees earned on average 98 percent more per hour than people without college degrees.

In the early 1980s, graduates earned 64 percent more.

So even though college costs are rising, the financial return to a college degree compared to not having one is rising even faster.

But here’s the qualification, and it’s a big one.

A college degree no longer guarantees a good job. The main reason it pays better than the job of someone without a degree is the latter’s wages are dropping.

In fact, it’s likely that new college graduates will spend some years in jobs for which they’re overqualified.

According to the Federal Reserve Bank of New York, 46 percent of recent college graduates are now working in jobs that don’t require college degrees. (The same is true for more than a third of college graduates overall.)

Their employers still choose college grads over non-college grads on the assumption that more education is better than less.

As a result, non-grads are being pushed into ever more menial work, if they can get work at all. Which is a major reason why their pay is dropping.

What’s going on? For years we’ve been told globalization and technological advances increase the demand for well-educated workers. (Confession: I was one of the ones making this argument.)

This was correct until around 2000. But since then two things have reversed the trend.

First, millions of people in developing nations are now far better educated, and the Internet has given them an easy way to sell their skills in advanced economies like the United States. Hence, more and more complex work is being outsourced to them.

Second, advanced software is taking over many tasks that had been done by well-educated professionals – including data analysis, accounting, legal and engineering work, even some medical diagnoses.

As a result, the demand for well-educated workers in the United States seems to have peaked around 2000 and fallen since. But the supply of well-educated workers has continued to grow.

What happens when demand drops and supply increases? You guessed it. This is why the incomes of young people who graduated college after 2000 have barely risen.

Those just within the top ten percent of college graduate earnings have seen their incomes increase by only 4.4 percent since 2000.

When it comes to beginning their careers, it’s even worse. The starting wages of college graduates have actually dropped since 2000. The starting wage of women grads has dropped 8.1 percent, and for men, 6.7 percent.

I hear it all the time from my former students. The New York Times calls them “Generation Limbo” — well-educated young adults “whose careers are stuck in neutral, coping with dead-end jobs and listless prospects.” A record number are living at home.

The deeper problem is this. While a college education is now a prerequisite for joining the middle class, the middle class is in lousy shape. Its share of the total economic pie continues to shrink, while the share going to the very top continues to grow.

Given all this, a college degree is worth the cost because it at least enables a young person to tread water. Without the degree, young people can easily drown.

Some young college graduates will make it into the top 1 percent. But that route is narrower than ever. The on-ramp often requires the right connections (especially parents well inside the top 1 percent).

And the off-ramps basically go in only three directions: Wall Street, corporate consulting, and Silicon Valley.

Don’t get me wrong. I don’t believe the main reason to go to college – or to choose one career over another — should be to make lots of money.

Hopefully, a college education gives young people tools for leading full and purposeful lives, and having meaningful careers.

Even if they don’t change the world for the better, I want my students to be responsible and engaged citizens.

But when considering a college education in a perilous economy like this, it’s also important to know the economics.

 

Robert Reich, one of the nation’s leading experts on work and the economy, is Chancellor’s Professor of Public Policy at the Goldman School of Public Policy at the University of California at Berkeley. He has served in three national administrations, most recently as secretary of labor under President Bill Clinton. Time Magazine has named him one of the ten most effective cabinet secretaries of the last century. He has written 13 books, including his latest best-seller, “Aftershock: The Next Economy and America’s Future;” “The Work of Nations,” which has been translated into 22 languages; and his newest, an e-book, “Beyond Outrage.” His syndicated columns, television appearances, and public radio commentaries reach millions of people each week. He is also a founding editor of the American Prospect magazine, and Chairman of the citizen’s group Common Cause. His new movie “Inequality for All” is in Theaters. His widely-read blog can be found at www.robertreich.org.