With the job market still slumping, many job seekers have found it to be a perfect time to go back to school and pick up an advanced degree. The logic is that rather than entering the job market right now and being unable to find employment, these individuals will instead increase their education, and hopefully their viability as job candidates. Sounds like a solid plan, right?
Unfortunately, that’s not always the case.
A recent article from BusinessWeek shows that around 20% of MBA graduates are still unemployed 3 months after graduation. And while 3 months is only half of the time that an average unemployed person will spend looking for work, the statistic does show that an advanced degree doesn’t guarantee a job. In fact, some people are suing their colleges because they haven’t been able to find work.
Or, to put it another way: if more people are entering post-graduate studies instead of the workforce, when they complete their education, they will be facing off against a larger sea of post-grad graduates for the same jobs, as well as peers with two years’ more work experience. And the long-term effects of a higher level degree on salary or position within a company often become negligible, not to mention that some companies will pay for continued education for their employees. So what is a post-graduate degree really worth?
Honestly, it depends on the field. In a field where knowledge and education are a greater asset, like engineering, medicine or science, a higher degree is almost essential. But for a career in a field that is based around core competencies and experience, like accounting, marketing or art, it’s almost inconsequential. In fact, many graduate programs suggest (or in some cases require) a period of a few years of work before starting their programs.
While going for more school might seem like a better alternative to trying to get a job, it may actually serve little to no benefit besides delaying entry to the workforce. So make sure that you are aware of the criteria and competencies needed for your chosen career before running off to get more student loans.
