Why College Degrees Are Losing Their Value

This is not a new phenomenon, the inflation of college degrees or credential inflation! It has become very apparent for the past 1-2 decades.

Way too many young adults have college degrees now and are overeducated for the job market! This phenomenon has also been observable in other Western countries.

This article does not even cover the subject of indebtedness of fresh graduates.

"... In 1940, 4.2 million Americans were 4-year college graduates. Today, 99.5 million Americans have earned a bachelor’s degree or higher. These numbers demonstrate the sharp increase in the number of Americans earning college degrees.

Today, nearly 40 percent of all Americans hold a 4-year degree. Considering the vast increase in college attendance and completion, it’s fair to question if a college degree has retained its “purchasing power” on the job market. Much of the evidence seems to suggest that it has not. ...
Many jobs that previously required no more than a high school diploma are now only accepting applicants with bachelor’s degrees. This shift in credential preferences among employers has now made the 4-year degree the unofficial minimum standard for educational requirements. ...
Approximately 41 percent of all recent graduates are working jobs that do not require a college degree. It is shocking when you consider that 17 percent of hotel clerks and 23.5 percent of amusement park attendants hold 4-year degrees. ..."

Why College Degrees Are Losing Their Value - Foundation for Economic Education The signaling function of college degrees may have been distorted by the phenomenon known as credential inflation.