Does college still pay? Workers without a degree are doing better than they have in years, report finds (2024)

FAQs

Does college still pay? Workers without a degree are doing better than they have in years, report finds? ›

In fact, young adults without a college degree are doing better than they have in years, according to Pew's analysis of government data. Their earnings mostly trended lower since the mid-1970s, largely due to increased automation and a shift away from manufacturing and unionization.

College is a good investment

By 2021, the difference had grown to 62 percent (and closer to 90% for workers with graduate degrees). Currently, California workers with a bachelor's degree earn a median annual wage of $81,000.

No, college is just one of many paths you can choose to be successful. According to the Bureau of Labor Statistics, IT (information technology) support specialists, paralegals, graphic designers, and EKG technicians all make on average over $50,000 a year without needing a four-year degree.

The study used U.S. Census data to compare the earnings of college graduates to people who had only finished high school, as well as the costs of college, and found that a college degree earned a rate of return on investment of 9-10% annually throughout a person's career.

A recent study found that 45% of employers have already removed the college degree requirement for certain roles and 72% prioritize candidates' skills and experience over degrees.

According to the U.S. Bureau of Labor, bachelor's degree holders earn 68% more than those with only a high school diploma. The earnings gap between college graduates and those without continues to widen.

A new Pew Research Center analysis finds that job opportunities and wages are improving for workers without a bachelor's degree. Still, earning a four-year degree is almost always worthwhile, other research shows.

Is college worth it anymore? ›

College graduates still enjoy higher earnings than the average U.S. worker. The U.S. Bureau of Labor Statistics (BLS) reports that in 2023, bachelor's degree holders took home a median wage of $1,493 per week, while workers with just a high school diploma earned only $899. That's a difference of 66%.

Engineering, computer science, nursing, and economics degrees have the highest ROI. Associate degree and certificate programs have variable ROI, depending on the field of study.

Over a lifetime, individuals with a Bachelor's degree make 84% more than those with only a high school diploma. Despite a general earnings boost conferred by a degree, earnings vary greatly depending on the degree type, age, gender, race/ethnicity, and occupation of an individual.

There are three generally accepted methods: Contact the schools or higher learning institutions directly. Ask the candidates to provide a copy of their diploma or transcripts. Work with a third-party background check service.

55% of companies eliminated bachelor's degree requirements in 2023. 70% say they eliminated bachelor's degree requirements to create a more diverse workforce.

Aside from GPA, employers also look closely at the specific type of degree you've earned. That's why it's crucial you choose a major aligned with your future career goals. After all, employers want to make sure you've received the proper training to successfully perform the job they're hiring you to do.

According to the Economic Policy Institute, graduates of advanced degree programs earn about 25% more than those with just a bachelor's degree.

Because of the Middle Class Scholarship, 302,000 students received an average of $1,970 more dollars toward their education in the 2022-23 academic year, according to data CalMatters obtained from the state's financial aid agency, the California Student Aid Commission.

In 2023, a Wall Street Journal-NORC poll revealed that 56% of Americans think a four-year college degree isn't worth the cost. Respondents aged 18 to 34 — the most likely to be enrolled in college — were most dubious of its value, with 61% percent holding negative views.

The average cost of a four-year degree (which takes 6 years to earn) is $155,000. The average cost of an associate's degree (assuming a 2-year program) is $35,000. The average salary for our College Grad is $52,000. The average salary for our Trade School Grad is $39,000.