A bachelor’s degree remains a significant advantage in the US job market. College graduates generally earn more and are more likely to be employed. However, many Americans find a four-year degree unaffordable or simply undesirable. Let’s explore key facts about American college graduates and see what degrees are popular today.
The Growing Number of College Graduates
A significant portion of Americans now hold a bachelor’s degree. Approximately 37.9% of adults aged 25 and older possessed a bachelor’s degree in 2021, including 14.3% with a graduate or professional degree. This marks a 7.5 percentage point increase from 30.4% in 2011, highlighting the increasing importance of higher education. An additional 10.5% had an associate degree in 2021.
Gender Trends in College Education
Women are now more likely to graduate from college than men. In 2021, 39% of women aged 25 and older had a bachelor’s degree or higher, compared to 37% of men. This gap is even wider among adults aged 25 to 34, with 46% of women holding at least a bachelor’s degree versus 36% of men. This shift suggests evolving attitudes and opportunities in higher education for women.
Interestingly, a 2021 survey revealed that 34% of men without a degree said they simply didn’t want one, compared to only 25% of women. Men were also more likely to feel they didn’t need further education for their desired job (26% vs. 20% of women). Affordability was a more significant concern for women, with 44% citing it as a major reason for not having a bachelor’s degree, compared to 39% of men.
Racial and Ethnic Disparities
Significant racial and ethnic disparities exist in college graduation rates. In 2021, 61% of Asian Americans aged 25 and older held a bachelor’s degree or higher, followed by 42% of White adults, 28% of Black adults, and 21% of Hispanic adults. These figures have increased since 2010, but the gaps persist.
Hispanic adults (52%) were more likely than White (39%) or Black (41%) adults to cite affordability as a major barrier to college completion. Needing to work to support their families was also a more significant factor for Hispanic and Black adults. White adults were more likely to cite a lack of interest in school or not needing more education for their desired job.
College Completion Rates
A substantial number of students do not complete their degree programs. Only 62% of students who begin a degree or certificate program finish within six years, according to the National Student Clearinghouse. Completion rates vary significantly by institution type, with four-year, private, nonprofit schools having the highest rate (78.3%) and two-year public institutions the lowest (42.2%).
Popular College Degrees: What’s Trending?
Business is the most popular bachelor’s degree. Approximately 19% of the 2 million bachelor’s degrees awarded in 2019-20 were in business. Health professions and related programs were the second most popular field, accounting for 12.6% of degrees. Business has consistently been the most common major since 1980-81. The least common bachelor’s degrees were in military technologies and applied sciences, library science, and precision production.
The Earnings Advantage
A college degree translates to a significant earnings advantage. In 2021, full-time workers aged 22 to 27 with a bachelor’s degree earned a median annual wage of $52,000, compared to $30,000 for those with a high school diploma. This earnings gap has widened over time.
Employment Rates
College graduates experience lower unemployment rates. In March 2022, the unemployment rate for college graduates aged 25 and older was 2%, compared to 3% for those with some college education but no four-year degree, and 4% for those with only a high school diploma. The pandemic initially widened this gap, but it has since narrowed as the economy recovers.
Underemployment Challenges
Recent college graduates are more likely to be underemployed. As of December 2021, 41% of college graduates aged 22 to 27 were working in jobs that typically do not require a college degree, compared to 34% among all college graduates. The share of underemployed graduates in low-wage jobs (earning less than $25,000 annually) has also increased.
Wealth Accumulation
First-generation college graduates lag behind those with college-educated parents in income and wealth accumulation. In 2019, households headed by a first-generation college graduate had a median annual income of $99,600, compared to $135,800 for households headed by someone with at least one parent who graduated from college.
The Perceived Value of a College Education
Most college graduates see value in their experience. A 2021 survey revealed that majorities of graduates found their college education extremely or very useful in helping them grow personally and intellectually (79%), opening doors to job opportunities (70%), and developing specific skills and knowledge applicable in the workplace (65%). However, younger graduates were less likely than older ones to see value in their college education.
What Does This Mean for Today’s Graduates?
A college degree continues to be valuable, offering higher earning potential and lower unemployment rates. However, factors such as gender, ethnicity, and socioeconomic background influence educational attainment and subsequent economic outcomes. While business and health professions remain popular choices, graduates should carefully consider their career goals and the evolving job market when selecting a degree program. The key to success lies in leveraging the skills and knowledge gained through education to secure meaningful and well-compensated employment.
