A study says college grads can’t find jobs. Here’s what they should do

It’s graduation season. Thousands of hopeful college graduates will take to the streets — and their screens — with resumes in hand, eager to find their place in the working world.

Despite the hard work and financial sacrifices involved with obtaining a bachelor’s degree, a recent study by the Burning Glass Institute has demonstrated that job hunting after college graduation can feel like a seemingly impossible task.

Here is what college graduates should know before taking their next step.

Why is it so hard for college graduates to find jobs?

“There aren’t enough college-level jobs out there for all of you,” according to The New York Times. “Some of you will snag them. Others will have to settle for jobs that don’t require a college education.”

They continued, “And history shows that many of those who start out in a job that doesn’t require a college education are still toiling in that kind of job a decade later.”

The New York Times asked Goldman Sachs’ economics team why the job market is so tough for “new entrants and college grads.” Some potential reasons include:

• Employers might be becoming more selective in their hiring process due to the labor market “moving into better balance.”
• The COVID-19 pandemic — and its accompanying remote work, “may have affected their training, networking, and human and social capital accumulation.”
• The worker shortages in the United States are mainly for “low-skilled jobs,” or jobs that don’t require a college education.
• People who weren’t working — but who had student loan debt — might be forced back into the workplace to pay off their loans. This adds competition to the job market.

According to the report by the Burning Glass Institute, underemployment is both “sticky” and a financial burden.

“A recent graduate employed in a college-level job typically earns about 88 percent more than a highschool diploma holder,” said the report, “while an underemployed graduate typically earns only about 25 percent more than someone with no education beyond high school.”

So while college graduates do earn more than those who have earned only a high school diploma, underemployed college graduates don’t fare as well.

Per the report, “This leaves underemployed graduates on weaker financial footing as they start their careers, especially those with substantial student loan debt.”

How can college graduates adapt?

While the outlook seems grim, there are a few things — to do during and after college — that will make a difference in job placement post-graduation. Here are a few things to consider:

• According to the report by the Burning Glass Institute, an internship can make a substantial difference in college-level employment. “The odds of underemployment for graduates who had at least one internship are 48.5 percent lower than those who had no internships.”
• The first job a college graduate takes after graduating is “critical,” according to the report. The graduates who start out in a college-level job are far more likely to retain that job level years later.
• College majors (or the field of study) and internships matter more than geography, gender, ethnicity and institution type, according to the study. Underemployment rates vary by college major.