Despite an uncertain economy, three out of four recent college grads are looking forward to a positive career experience.
It seems like we’ve been waiting forever for the next promised recession to hit. With some combination of interest rate hikes and supply chain corrections seemingly keeping inflation under control, hope has grown that the economy will have more of a soft landing than a hard drop into a recession. But, with the labor market remaining strong, interest rate hikes will likely continue—which will then increase the threat of a recession once again.
The uncertainty of what will happen is the worst part. So, you can only imagine how young people, especially those who recently graduated from college, feel as they try to anticipate what the economy will be like as they kick off their careers.
What’s surprising is that, according to the new Graduate Outlook Survey conducted by the CFA Institute, most college graduates are actually increasingly optimistic about their place in the economy moving forward.
“We found that three-quarters of graduates in the U.S. are confident in their future career prospects, despite the looming threat of a recession, and that they have a good sense of what employers are looking for in prospective employees,” says Margaret Franklin, CFA, President and CEO at CFA Institute.
I connected with Franklin for an email interview to discuss more insights we can learn from the CFA survey. Here are five vital questions these young people are asking themselves today—and how they’re answering them.
1. How confident am I?
Franklin says that when her group compared the results of this year’s survey to one they conducted two years ago, some interesting trends emerged.
For example, graduates in the finance, STEM and sales/marketing industries saw a major increase in their career industry confidence, while the healthcare, medicine and government sectors saw a drop in confidence.
“This may be because the COVID-19 pandemic altered the way college students view certain industries and because their education was so heavily affected by the pandemic,” says Franklin. “They’ve become more adaptable, resourceful and have learned skills they may not have otherwise learned. What’s interesting is that the majority of students and recent grads said that they’ve had to shift their post-graduate plans because of the pandemic.”
2. Will I make enough?
Another interesting takeaway from the survey was that nearly two out of five college graduates are worried about the potential for low pay in their desired industry—which is a stark increase from how graduates responded in 2021.
“Our survey found that a good salary is the most sought-out factor for American graduates when considering a new employer—followed by a flexible working environment and a clear progression of opportunities within their position,” says Franklin.
When I asked Franklin why this shift over fears of low pay might be occurring, she pointed to the fact that Gen Z workers are entering the job market at a time of rising cost of living and an uncertain economy, both of which are having an impact on their career decision-making process.
“Being adaptable and flexible in a volatile economy is extremely important when looking to increase your earning potential as you progress throughout your career,” she says. “Another noteworthy factor is the way that we work is changing, and these changing preferences play a huge role in career paths. The popularity of hybrid and fully remote office experiences is clear from our findings.”
3. Am I qualified?
Another common fear among college graduates who answered the survey is that more than a quarter (29%) said they fear they may be underqualified for the job they want, which also explains why survey respondents also showed an uptick in interest in pursuing credentials to help bolster their credibility.
Interestingly, around the same number of young people also said they fear having to work in a sector that doesn’t fulfill or interest them.
“We’re consistently seeing a tug-of-war effect among new graduates around their needs to follow their career passions and their needs to ensure both quality-of-life and professional growth in their desired paths,” says Franklin.
4. How do I compare to my parents?
Another interesting takeaway from the CFA Institute survey is that 47% of American graduates consider themselves to have better career prospects than their parents’ generation.
“This shows us that the next generation of talent has a resilient mindset and that despite their challenging experience during the pandemic, they demonstrate a clear desire to better themselves through the opportunities that education, certifications, and training can unlock,” says Franklin. “Compared to past generations, the availability of continued learning opportunities contributes to this sense of confidence, which is great to see.”
5. Does college pay?
One of the big questions on the minds of young people and their parents these days is whether the cost of college is worth it. According to the survey results, 77% of U.S. graduates said pursuing a degree was worth it—despite the hefty price tag that often comes with it.
Perhaps just as interesting is that nearly three out of four graduates said that their career prospects have improved because they pursued a college degree.
“This proves that graduates are interested in obtaining career-ready skills while earning their college degrees, and they know that higher education, certifications, and ongoing training remain a powerful means to grow professionally—so much, in fact, that they prolong their time in education, be it in the classroom or otherwise,” says Franklin.
Beyond the classroom
It used to be true that you could just have robust academic knowledge and it would enable you to do really well in your career. In fact, the more robust academic knowledge you had, the more money you would make. That’s not necessarily true any longer. You need more than just an academic degree to land (and thrive in) most of the available jobs—a truth which is only reinforced by the results of the CFA Institute study.
College remains a viable option to help young people enter the workforce in an uncertain economy—but it’s not the only path. It’s becoming increasingly clear that if young people want to reach their ideal career and lifestyle, they must go beyond the classroom to develop skills and credentials that the workplace values—and will compensate them for.
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