“We often hear employers and business leaders lament the unfortunate gap between what students learn in college and what they are actually expected to know in order to be job-ready. This is particularly alarming in light of the large — and still growing — number of people graduating from university: above 40% of 25 to 34-year-olds in OECD countries, and nearly 50% of 25 to 34-year-olds in America.
Although there is a clear premium on education — recent reports from The Economist suggest that the ROI of a college degree has never been higher for young people — the value added from a college degree decreases as the number of graduates increases. This is why a college degree will boost earnings by over 20% in sub-saharan Africa (where degrees are relatively rare), but only 9% in Scandinavia (where 40% of adults have degrees). At the same time, as university qualifications become more commonplace, recruiters and employers will increasingly demand them, regardless of whether they are actually required for a specific job. So, while tertiary degrees may still lead to higher-paying jobs, the same employers handing out these jobs are hurting themselves — and young people — by limiting their candidate pool to college graduates. In an age of ubiquitous disruption and unpredictable job evolution, it is hard to argue that the knowledge acquisition historically associated with a university degree is still relevant.”
– Harvard Business Review