Work Trends | Chapter 4
Unfulfilled Expectations
Student Debt, Recent College and High School Graduates
Three studies conducted in 2011 and 2012 explore the experiences of high school and college graduates from the classes of 2006 – 2011. The purpose of the studies was to understand how recent graduates were faring in the workforce, specifically looking at those individuals who graduated before and during the difficult labor market caused by the Great Recession.
Studies
Unfulfilled Expectations
A nationally representative survey conducted March-April 2011 of 571 U.S. residents who graduated from a four-year post-secondary institution between 2006 and 2010.
Chasing American Dream
A nationally representative survey conducted April-May 2012 of 444 U.S. residents who graduated from a four-year post-secondary institution between 2006 and 2011, including 315 re-interviews of 2006-2010 graduates from Heldrich’s 2011 study and 129 new interviews of 2011 graduates.
Left Out. Forgotten?
A nationally representative survey conducted March – April 2012 of 544 U.S. residents who graduated from a secondary institution between 2006 and 2011.
Media Coverage
College Graduate Themes
College Debt
In 2011, recent college graduates reported a median debt of $20,000. Graduates of public institutions carried 25% less debt than private school graduates – $18,680 vs. $24,460.
Two-thirds of graduates used at least two different funding sources — 6 in 10 borrowed money from a source such as the federal government (58%), 4 in 10 said this was their primary source of money to pay for college (37%). Four-fifths reported working at least part time while in college, with nearly one-quarter (23%) working full time. 5 in 10 had parents or relatives pay (51%).
Six in ten owed money to pay off their student loans upon graduation. At the time of the survey, a huge majority of students (83%) owe at least half of what they borrowed.
First Jobs and Pathways to Next Jobs and Careers
In 2011, 82% were working in some way at time of survey. 53% had full-time jobs and not in school, 21% attending graduate school, either full- or part-time. 14% looking for a full-time job. In 2012, -51% employed full-time at time of survey; 6% working part-time and looking for full-time work; 6% working part-time and not looking; 6% unemployed and looking; 6% attending grad/professional school and not employed; 14% attending graduate or professional school and employed FT or PT. Table below shows median starting salary for the 2011 sample of recent college graduates, disaggregated by graduation year, type of institution attended, whether an internship was completed, perceptions of degree and job alignment, and wage type.
Recent College Graduates’ Median Starting Salary for First Job, by Various Characteristics
| Recent College Graduates (2011) | Median starting salary for First Job |
| All graduates | $30K |
| Pre-recession (2006-2007) | $30K |
| Recession (2009-2011) | $27K (call out compared to above) |
| Public school | $30K |
| Private school | $30K |
| Did internship | $34,680 |
| No internship | $28K |
| First job very/somewhat related to degree | $35 |
| First job not very/not at all related to degree | $25 |
| Salary | $35,510 |
| Hourly | $25K |
Voices of Graduates
Why do you think you have not found a full-time job? (2012)
You mentioned that your college education prepared you well to be successful in your first full-time job. Please briefly explain how you were well prepared.
College Decision-Making
In 2011, ¾ of sample would have done something different to be successful in the labor market/workplace.
%
more careful about selecting a major/chosen a different major
%
done more internships or worked PT
%
would have started looking for work much sooner while still in college
High School Graduate Themes
Where did they go?
30% indicated they are unemployed and looking for work; 45% in total looking for full-time work; nearly half actively seeking employment for more than 6 months, 3 in 10 for more than a year. Nearly half of all high school graduates were looking for full-time employment at time of survey.
By the Numbers
After graduation did you…
%
Find or look for a job
%
Go to a community college full time
%
Go to a four-year college/ university full time
%
Take college courses part time
%
Take some time off for family or health reasons
%
Other
%
Join the military
%
Enter a job training program
By the Numbers
%
working in temporary positions in their first jobs, over half were part-time
%
Nearly all working hourly, median wage $7.50 ($0.25 over federal minimum wage)
%
indicated their first job was a job to get by
%
most said their current job was to get by rather than a stepping stone to a career or a career
is median salary for current job, modest increase from $7.50 of first job
College Plans
Most high school graduates said they would need more education to have a successful career, yet fewer planned to attend: 38% definitely planned to attend, with another 25% saying they “probably will.” Among the 17% saying they definitely or probably will not go (back) to college, just 22% say they either have enough college or do not need any more college for what they want to do. The primary barriers are economic, with 34% saying they cannot afford college and 37% saying they need to work to make ends meet.
%
7 in 10 HS graduates say they will need more education to be successful the career they want
%