Economic Analysis of Business Practice
This also is a good segue for understanding not only why lower skilled jobs continue to fall but also the impact of “college degree” inflation on the job market. The pressure for more people than ever to go to college has created an inflation on two fronts. The first is in the context to the inflated costs of college and how that impacts the return-on-investment over a lifetime. The second is the “job inflation” whereas college graduates grab more jobs at the lower end of the scale that would normally to those with less college or no college at all. With today’s stagnant job market, college graduates take jobs they are often overqualified for. Coy (2013) wrote an excellent article on this subject: http://www.businessweek.com/articles/2013-05-09/whats-wrong-with-the-u-dot-s-dot-job-market#p2Another factor to consider is the mismatch in skills that the job market is demanding today and the skills of those in the employment pool. “We’re in a a Jetsons economy. Technology is just massively disintermediating jobs” notes Coy.
There seems to be a dichotomy in the debate regarding college degrees. David brings up a good point in that in recent years, college degrees have lost their market prowess and have become less and less instrumental in recent graduates securing stable jobs. However, there seems to less of an overall increase in students getting college degrees.According to a recent study, college graduation rates have declined, with only 53% of students enrolled from 2009 graduating.It seems that many students may be turning towards vocational schools and careers that don't involve college degrees. Some careers could pay over $80,000 without ever stepping onto a college campus. Therefore, college degrees are not always the best option for students in they are interested in careers that do not require a full 4-year degree. Other options are available, such as 2-year degrees, certificates, and vocational schools.It seems that there is a growing mid-section of the higher education demographics. While the higher educated, 4-year graduates are not growing, and the demand for low-skilled workers is falling, there may be a growing market for the vocationally educated skilled workers.http://time.com/4116856/college-graduation-rate/http://lifehacker.com/the-highest-paying-jobs-that-dont-require-a-college-deg-1742585217http://www.lansingstatejournal.com/story/news/local/2015/11/15/year-degree-always-best-option/75735546/