Gen Z wants a job, not a graduate degree

By James W. Lewis, President of NSHSS

The National Society of High School Scholars (NSHSS) and Hanover Research recently conducted a survey of more than 14,000 high school and college-age students to gain insights into the state of youth perspectives on careers and their futures. The research revealed the preferences and attitudes about education, career and employment aspirations, and civic involvement. One of the notable takeaways from the survey is that students appear more inclined to pursue a job than a graduate degree after college.

The 2020 Career Interest Survey results suggest that the trend towards increased educational attainment may be flattening out, particularly for White/Caucasian students. In total, the percentage of NSHSS scholars reporting they are the first in their families to attend college decreased from 24% to 21%. However, this percentage jumps to 3 in 10 among Native Americans (30%) and 4 in 10 among Latinos (39%).

In 2020, plans to attend graduate school have fallen sharply to 62%, down from 76% in 2018 and around 80% in 2014 and 2016. This is true across all ethnicities, although Asian Americans/Pacific Islanders (72%) and Blacks/African Americans (69%) are the most likely to show an interest in a graduate education.

Because this data was collected prior to any discernable impact of COVID-19 in the United States, this drop may be reflective of a strong economy and optimistic job prospects but may also reflect Generation Z’s growing concern with global economic uncertainty and student loan debt. It is important to note that to-date, more than one million parents of college age students have lost jobs due to COVID. That fact may also push students into the job market sooner than expected.

Women have greater post-secondary educational aspirations than their male counterparts. Not only are they more likely to be the first in their families to attend college (22% females vs. 17% males), they are also more likely to have plans to attend graduate school (64% vs. 55%). Data suggests that these strong aspirations translate into academic success, with women outpacing men with degrees at every level, including post-graduate.14

The Economics of Education

Much has been made of student loan debt figures in the two years since the 2018 edition of the Career Interest Survey. Data suggest that about two-thirds (65%) of 2018’s graduating class had student loan debt averaging $29,200.15 Overall, Generation Z appears to be acutely aware of the challenges with accruing and ultimately paying off student loan debt. Almost half (48%) expect to have more than $10,000 in student loan debt.

Expected Student Loan Debt

Half of NSHSS college scholars currently have a job that they use to pay for personal expenses or higher education, and nearly three-quarters (72%) of high school students expect to need a job while they are in college.

In 2020, the percentage of NSHSS scholars saying they need a job during college for their own personal income is at its highest point since 2014, up significantly from 53% in 2018 to 61% in 2020.

Expectations vs Realities in College Funding

Concerns about student loan debt and the mismatch between high school students’ perception of funding sources and reality may impact career choices in the future. Data suggest that the majority of students consider pay to be the number one consideration in deciding whether to take a job. In addition, more than half of NSHSS scholars (56%) expect to be living at home when they start their first job, and the majority of those plan to stay at home for more than a year.

The issues that NSHSS scholars would most like to impact have shifted slightly since 2018 with healthcare/health-related issues and environment/energy increasing in importance and education and bullying/violence prevention falling.

All of this points to the realization that when faced with the choice between adding on more student loan debt to pursue a graduate degree versus entering the job market after or during college to both relieve financial burden and bolster hands-on skills, students are trending toward the latter. For employers looking to tap into talent sooner rather than later, that may be a win-win scenario as long as they are willing to devote significant resources into training and skill development for new hires.