A recent joint report by the Strada Education Foundation and the Burning Glass Institute sheds light on the enduring consequences of starting one’s career underemployed, particularly in the context of bachelor’s degree holders in the United States.

Persistent Underemployment

According to the report, individuals who begin their careers in underemployed positions, defined as roles not commensurate with their skills, education, or availability, tend to remain underemployed over the next decade. Remarkably, approximately 73% of graduates who find themselves in such positions in their first year after graduation continue to experience underemployment ten years later.

Conversely, even those fortunate enough to secure college-level jobs initially often find themselves stuck in underemployment by the ten-year mark, with approximately 79% facing this predicament.

Significance of the First Job

The report underscores the critical importance of the first job after graduation, indicating that graduates who start their careers in college-level roles are far less likely to transition into underemployment. Specifically, those who secure and maintain college-level jobs for at least five years have an 86% chance of avoiding underemployment a decade later.

Financial Implications

The financial ramifications of underemployment are substantial, with college-level jobholders typically earning 88% more than high school diploma holders. In contrast, those in positions not requiring a degree experience only a 25% increase in earnings. Consequently, graduates in college-level roles earn 50% more than their underemployed counterparts.

Underemployment Statistics

The report highlights that a significant proportion of American graduates commence their careers underemployed, with 52 out of 100 graduates experiencing this phenomenon in their first year of work. Even after a decade, this figure only marginally decreases to 45 out of 100 graduates.

Strategies to Mitigate Underemployment

Various factors contribute to the risk of underemployment, including gender, race, institutional background, and geographical location. However, obtaining internship experience emerges as a significant mitigating factor, reducing the risk of underemployment by nearly 49%.

Conclusion

The findings of the report underscore the enduring impact of underemployment on graduates’ long-term career trajectories and financial well-being. By emphasizing the importance of securing college-level positions early in one’s career and the value of internships, the report provides valuable insights for graduates navigating the competitive job market landscape.