Job Prospects For University Students: What Are The Odds?

Getting a job after university is a critical milestone for graduates. According to the National Center for Education Statistics, college graduates aged 25 to 34 have an impressive employment rate of 86%. This, coupled with the lowest unemployment rates since 1969, underscores the favourable job market for bachelor's degree holders. However, it is worth noting that not all graduates secure jobs that require a degree. In fact, a report by the Strada Institute for the Future of Work and the Burning Glass Institute revealed that 52% of graduates are underemployed a year after completing their studies, and this trend persists for many years.

Employment rates for graduates with a bachelor's degree

The employment rate for bachelor's degree graduates varies depending on several factors, including age, race, field of study, and the type of institution attended. Here is an overview of the employment rates for graduates with a bachelor's degree:

Overall Employment Rates

According to the National Center for Education Statistics, the employment rate for college graduates aged 25 to 34 was 86% as of 2017. This contributes to the overall employment rate of 72.3% for all college graduates in the United States. However, it is important to note that these statistics do not distinguish the type of job obtained and include individuals who may be underemployed.

Underemployment

Underemployment refers to holding a job that does not require a bachelor's degree, indicated by at least half of the employees in that role not having one. According to the Strada Institute for the Future of Work and the Burning Glass Institute, more than half (52%) of recent four-year college graduates are underemployed a year after graduation, and 45% remain underemployed a decade later. Black graduates are the most likely to be underemployed compared to their peers, with 60% underemployed a year after graduation. Additionally, almost 41% of recent college graduates in the humanities and liberal arts are underemployed, according to the Federal Reserve Bank of New York.

Factors Affecting Employment Rates

Field of Study

The field of study plays a significant role in the employment rates of bachelor's degree graduates. Graduates in STEM fields, such as computer science and engineering, generally have lower rates of underemployment. For example, 74% of engineering graduates held college-level jobs five years after graduation, compared to 53% of biology majors.

Institution Type

The type of institution attended also impacts employment rates. Graduates of more selective institutions that serve fewer low-income students are more likely to obtain college-level jobs. Private nonprofit universities have lower shares of underemployed graduates (49%) compared to public universities (54%) a year after graduation.

Strategies to Improve Employment Outcomes

To improve employment outcomes for graduates with a bachelor's degree, the report by the Strada Institute and the Burning Glass Institute offers several recommendations. These include providing internship opportunities, transparent employment data, comprehensive career coaching, and access to fields that contribute to well-paying, college-level jobs.

Underemployment rates

The underemployment rate for recent graduates in the US was 40.6% in the third quarter of 2024. This varies depending on the field of study. Criminal justice and performing arts majors have high underemployment rates, at 71.3% and 64% respectively. Humanities and liberal arts graduates also face high underemployment, with almost 41% being underemployed according to the Federal Reserve Bank of NY. STEM fields, such as computer science and engineering, generally have lower rates of underemployment.

Black graduates are the most likely to be underemployed compared to their peers, with 60% underemployed a year after graduation. The type of institution attended also seems to play a role, with graduates from more selective institutions that serve fewer low-income students being more likely to have college-level jobs.

Overall, underemployment rates for graduates are a significant issue, with many not finding jobs that fully utilise their skills and qualifications.

The role of internships

Internships are a great way for students to get their foot in the door and kick-start their careers. They provide valuable work experience and skills that can make a graduate's profile more attractive to potential employers. According to the National Association of Colleges and Employers (NACE), paid interns are about twice as likely to land a job after graduation compared to non-interns. Internships can also help students build their professional networks and gain mentors who can support their future career choices.

Completing an internship allows students to add new skills and qualifications to their resumes, giving them a competitive advantage over other candidates when applying for jobs. It also helps them identify their strengths and weaknesses and gain access to helpful feedback from managers. Internships can also be a source of income for students, as many companies offer paid internships that pay at or above the minimum wage.

In addition to the career benefits, internships can also help students transition from school to work. They provide a learning experience and allow students to reflect on their education and how it can be applied to a career. Students can also explore different fields and gain insight into whether a specific career, industry, company, or work environment is a good fit for them.

To find an internship, students can utilise their networking skills and reach out to their university tutors, careers services, or people they know in the industry. They can also approach companies directly by sending their CV and a cover letter. Job sites, online internship platforms, and university career centres are other useful resources for finding internship opportunities.

Overall, internships play a crucial role in enhancing students' employability and easing their transition into the workforce. They provide valuable skills, industry experience, and networking opportunities that can increase students' chances of securing a job after university.

Employment rates by field of study

According to a 2017 study by the National Center for Education Statistics, college graduates aged 25 to 34 have an employment rate of 86%. The overall employment rate for 25 to 34-year-olds in 2023 was 80%, with the highest employment rate being for those with a bachelor's degree or higher (88%).

However, it is important to note that the term "employment" does not distinguish between jobs that require a degree and those that do not. In fact, a report by the Strada Institute for the Future of Work and the Burning Glass Institute found that more than half of recent college graduates (52%) are underemployed a year after graduation, and this number only drops to 45% a decade later. This report defines underemployment as holding a job that does not require a bachelor's degree, indicated by at least half of the employees in that role not having one.

The field of study also plays a significant role in the employment rates of college graduates. For example, graduates in STEM fields such as computer science and engineering tend to have lower rates of underemployment, while those in the humanities and liberal arts have higher rates. According to the Federal Reserve Bank of New York, almost 41% of recent college graduates who are underemployed have degrees in these areas. On the other hand, unemployment rates are higher for those with degrees in Fine Arts (12.1%) and Philosophy (9.1%).

Online career services

One example of an online career service is Handshake, which connects students with potential employers, internships, and mentors. Handshake also provides hundreds of thousands of full-time job opportunities, many of which are exclusive to students. Other similar online career service sites include PeopleGrove, SetMyCareer, and Central Piedmont Community College's Career Services.

PeopleGrove is a career services platform that makes it easy for students to access all the career support services they need. It helps students explore careers and build a professional network, improving their career confidence and readiness. With PeopleGrove, 33% of students are offered an internship or full-time job directly through the platform. The platform also leverages AI technology to make powerful, personalised recommendations and connect students with mentors and networks, making access to careers more equitable.

SetMyCareer is another online career counselling service that offers scientific career counselling, psychological counselling, personality development, and career coaching and mentoring. They have a team of experienced counsellors who provide personalised insights and guidance to help individuals discover their career paths.

Central Piedmont Community College's Career Services helps students and graduates with choosing their major and career, as well as connecting them to employers. They offer drop-in sessions, professional headshot booths, and resources such as an online interest assessment, salary and employer information, and occupational growth projections.

Overall, online career services provide valuable support to students and graduates in navigating the complex world of careers and employment. They offer a range of resources and tools to help individuals build their professional networks, improve their job search strategies, and make informed decisions about their future.

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