By Jonathan H. Westover, PhD
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Abstract: This article examines the problem of underemployment among recent college graduates and proposes strategies for organizations and institutions of higher education to work individually and collaboratively to address this issue. According to recent data, over 55% of 2020 graduates were underemployed within six months due to factors like economic disruption from the pandemic, skills mismatches, unrealistic graduate expectations, and rising education costs. Long-term impacts of underemployment include lower lifetime earnings and wasted talent. The article suggests organizational approaches like internships, clear communication of needs, bridging roles, and mentorship to develop talent and connect graduates to careers. For institutions, recommendations include experiential learning, career education, industry advisory boards, and robust career services. Finally, the article proposes collaborative models such as curriculum partnerships with employers, employer-embedded teaching, shared talent databases, and joint roundtables to fully tackle graduate underemployment through multi-stakeholder cooperation.
Recent data shows an alarming trend of underemployment among recent college graduates. As leaders in business and higher education, we must work together to develop talent and connect graduates with meaningful work that utilizes their skills and education.
Today we will explore the research on underemployment and its impacts. It will then discuss strategies that organizations and colleges can adopt individually and collaboratively to better prepare graduates for careers and connect them with fulfilling jobs that match their qualifications.
Understanding the Problem
According to a 2021 survey by the Federal Reserve Bank of New York, over 55% of college graduates in 2020 were underemployed within six months of graduating (Badway & Sheiner, 2021). Underemployment refers to those who are working in jobs that do not require a college degree or are otherwise involuntarily working in roles below their skill or educational level (Guilbert et al., 2022).
There are several key factors contributing to this high rate of underemployment among recent graduates:
Economic disruption: The COVID-19 pandemic severely impacted many industries like hospitality, retail, and food services that traditionally employ young workers. Millions of jobs were lost, making entry-level opportunities scarce (Badway & Sheiner, 2021).
Skills mismatch: Graduates often lack the hands-on, career-specific skills that employers need. Meanwhile, employers struggle to clearly communicate their needs to educators (Xiang et al., 2022).
Unrealistic expectations: Students may graduate with unrealistic views of the job market and career paths. They expect their degree alone to lead directly to a professional job, when entry-level or "bridging" jobs are often necessary (Guilbert et al., 2022).
Rising costs of education: With student debt levels at an all-time high, graduates feel increased pressure to find higher-paying jobs immediately rather than gaining experience in bridging roles (Xiang et al., 2022).
The impacts of underemployment are significant for both individuals and society. Graduates who start their careers in jobs unrelated to their field of study are less likely to find meaningful, higher-skilled work later on (Badway & Sheiner, 2021). They also earn less on average over their lifetimes compared to employed peers (Xiang et al., 2022). This wastes talent and public funds invested in higher education.
Developing a Shared Solution
To solve the complex problem of graduate underemployment, both organizations and institutions of higher education must take action—but in a coordinated way. Sustainable change requires shared responsibility and collaboration between these stakeholder groups.
Organizational Strategies
Organizations can play a lead role in developing talent and connecting graduates with careers. Some effective strategies include:
Internships and apprenticeships: Well-structured internship and earn-and-learn programs allow students to gain hands-on skills and experience organizations' cultures before graduating (Xiang et al., 2022).
Clear communication of needs: Partnering with career centers, employers can promote opportunities and provide clear role descriptions, requirements, and career paths to help manage student expectations (Guilbert et al., 2022).
Bridging roles: Entry-level roles, often temporary or project-based, help graduates gain core competencies while acclimating to the professional environment (Badway & Sheiner, 2021).
Mentorship: Assigning graduates mentors within the organization fosters support, skills development, and networking—critical for career progression (Xiang et al., 2022).
Targeted recruiting and hiring: Seeking candidates from related fields and programs ensures graduates have relevant base knowledge and are less likely to leave early (Guilbert et al., 2022).
For example, major consulting and technology firms have highly successful internship-to-full-time-offer pipelines. Their curated programs immerse students in real work while still in school.
Institutional Strategies
Higher education has an important role in better aligning curriculum with workplace needs and preparing graduates for career navigation. Key strategies include:
Experiential learning: Internships, project-based courses, and community-engaged teaching foster hands-on skill-building and soft skills (Xiang et al., 2022).
Career education: Courses on job searching, networking, interviewing, and professional development better equip students for the transition (Guilbert et al., 2022).
Advisory boards: Regular input from industry leaders ensures curriculum stays relevant to evolving job markets (Badway & Sheiner, 2021).
Career services: Robust internship and job posting databases, recruiting events, and one-on-one advising support effective career management (Xiang et al., 2022).
For example, Northeastern University is known for its extensive cooperative education program integrating full-time work terms into academic programs.
Collaborative Solutions
To fully address graduate underemployment, these stakeholder groups must also partner in new ways. Potential collaborative models include:
Curriculum design partnerships: Joint curriculum development commits to delivering skills directly applicable to opportunities (Badway & Sheiner, 2021).
Employer-embedded teaching: Industry professionals co-teaching or guest lecturing enrich classroom learning (Guilbert et al., 2022).
Unified talent databases: Shared internship, job, mentorship posting platforms increase access for all (Xiang et al., 2022).
Roundtables: Regular convenings of educators and employers promote relationship-building and solutions co-creation.
For example, Western Governors University facilitates degrees directly tied to in-demand jobs through competency-based projects with corporate partners’ input throughout.
Conclusion
When over half of recent graduates struggle to find meaningful work, all stakeholders must examine their roles and look for new cooperative approaches. By understanding contributing factors, crafting intentional strategies, and collaborating in innovative ways, organizations and higher education can better develop talent and connect graduates with careers that utilize their full potential. With a shared commitment to solutions, these groups can make headway against the complex challenge of underemployment and help students launch meaningful, fulfilling careers.
References
Badway, N., & Sheiner, L. (2021, September 27). Why are so many college graduates underemployed? Brooking Institution. https://www.brookings.edu/blog/up-front/2021/09/27/why-are-so-many-college-graduates-underemployed/
Guilbert, J. J., Bernes, K. B., Tafvelin, S., & Standifer, R. L. (2022). College graduates’ underemployment: Impact, causes, and responses. Frontiers in Psychology, 13. https://doi.org/10.3389/fpsyg.2022.829670
Xiang, X., Griffith, C., & Walker, C. (2022, January 22). College graduate underemployment: Causes and remedies. Federal Reserve Bank of St. Louis. https://www.stlouisfed.org/open-vault/2022/january/college-graduate-underemployment-causes-remedies
Jonathan H. Westover, PhD is Chief Academic & Learning Officer (HCI Academy); Chair/Professor, Organizational Leadership (UVU); OD Consultant (Human Capital Innovations). Read Jonathan Westover's executive profile here.
Suggested Citation: Westover, J. H. (2024). More than Half Underemployed: Developing Talent for Meaningful Work. Human Capital Leadership Review, 13(1). doi.org/10.70175/hclreview.2020.13.1.3
