On the Value of a Degree
By Joan Christine Allon
The employment chances of a fresh college graduate is only 4 in 10, with only 1 in that 4 attaining work relevant to one’s course. Even in light of the unprecedented growth of 6.6% in GDP over the last year, the labor sector fails to follow suit in what economists characterize as a "job-shedding" growth. So where does a college degree place us? With the increased pressures on the youth to attend college, many consider the existence of a higher education bubble. The concept hypothesizes, in part, that movements in factors such as tuition payments and unemployable graduates severely decrease the rate of return to a college degree up to a point where it is rendered useless. In the case of the Philippines, effective capping of tuition fees to relatively affordable rates, spaces us from a bubble as of yet. However, it is to be stressed that with everyone jumping in the college wagon all at once – as is apparent now– we will soon find college degrees as no more useful than scratch, and then the true bubble begins. Evidence
There are too many college graduates. All college students should be aware that although a degree does open doors it loses much of its value as more and more people achieve this accolade. In 2012, a total of 517,425 college students graduated and entered the labor force. With another half a million expected to graduate in March this year, there is increasing concern on their place in the labor market. The number of graduates increase over the years, however jobs increase terribly less, if they increase at all – 882,000 jobs were reported to have disappeared in 2012. Since too many people compete for the same job, employers can afford to lower wages or increase qualifications as much as possible. This is apparent in the over qualification of some jobs – now supermarket baggers or janitors are expected to have had some years of college or even graduated the same, as opposed to the minimum of high...
Please join StudyMode to read the full document