TALENT

DISRUPTED
College Graduates, Underemployment,
and the Way Forward

FEB RU A RY 2024
TALENT
TALENT
DISRUPTED
DISRUPTED
College Graduates, Underemployment, and the Way Forward

College Graduates, Underemployment,

and the Way Forward
Author Credits and Acknowledgments

This report has been a collaborative effort by the teams at Burning Glass Institute and Strada Institute for the
Future of Work. Several key individuals have contributed substantially to the report, including Andrew Hanson,
Carlo Salerno, Matt Sigelman, Mels de Zeeuw, and Stephen Moret.

Our thanks also go to our colleagues who supported the report’s development and production: Amy Wimmer
Schwarb, Brian Hendrickson, Daniel Silverman, Dave Clayton, Eric Brown, Erik Leiden, Gaby Gomez, Jason
Johnson, Jon Furr, Katherine Valle-Palacios, Maria Ferguson, Melissa Leavitt, Nichole Torpey-Saboe, Olivia
Gunther, Ruth Watkins, Stuart Andreason, and Travis Reindl.

FEB RU A RY 2024
Suggested citation: Burning Glass Institute and Strada Institute for the Future of Work, Talent Disrupted:
Underemployment, College Graduates, and the Way Forward, 2024.

The Burning Glass Institute advances data-driven research and practice on the future of work and of workers.

Strada Institute for the Future of Work advances actionable research to strengthen talent pipelines for
employers and expand pathways to opportunity for individuals, and helps states leverage their education and
employment data to improve labor market outcomes for individuals, employers, and regions.
PREFACE
In the United States, higher education serves Recognizing that the labor market has undergone
several important purposes, including tremendous change over the past six years,
strengthening communication and critical Strada Institute for the Future of Work and the
thinking skills, preparing individuals for Burning Glass Institute have partnered to update
responsible citizenship, expanding intellectual our 2018 report, The Permanent Detour, to explore
interests, and helping people to navigate an how employment outcomes for college graduates
increasingly diverse and global society. A college have changed as the labor market has tightened.
education1 is also viewed by many as the most We have also sought to characterize in greater
reliable pathway to economic opportunity. detail the landscape of underemployment for
college graduates, including factors related to
Most people enroll in college in large part
their college experience, the characteristics of the
because they believe it will provide the knowledge
college they attended, and their characteristics as
and skills they need to secure a good job and join
individuals. Building on this expanded analysis and
or remain in the middle class, while employers
other research conducted by our organizations,
often rely on colleges as a principal supplier of
we also offer promising solutions to improve
professional talent. Higher education advocates
employment outcomes for graduates, including
frequently appeal to that promise of economic
college-level employment rates.
opportunity and the country’s growing demand for
talent as they make the case that greater college Helping more students realize the economic
enrollment and degree attainment is an important promise of higher education will require action
public goal. by several stakeholders, including policymakers,
educators, and students. Promising solutions
However, college is not a guarantee of labor
are emerging to strengthen the link between
market success. While the typical college
education and opportunity toward a future where
graduate continues to fare substantially better
the outcomes of education programs are clear,
in the labor market than workers with no more
all students have access to quality coaching
than a high school education,2 a sizable share
and work-based learning, and the financial
of graduates do not experience the economic
risks imposed upon students and families are
outcome they expected from earning a
minimized.
bachelor’s degree. Among workers who have
earned a bachelor’s degree, only about half Strada Education Foundation and the Burning
secure employment in a college-level job within Glass Institute are committed to helping bring
a year of graduation, and the other half are these solutions to life.
underemployed—that is, working in jobs that
Stephen Moret, President and CEO, Strada
do not require a degree or make meaningful
Education Foundation
use of college-level skills. Some graduates who
Matt Sigelman, President, Burning Glass Institute
are initially underemployed eventually secure
a college-level job, but the majority remain
underemployed 10 years after graduation.

Talent Disrupted — February 2024 3

Table of Contents
Author Credits and Acknowledgments 2

Preface 3

Executive Summary 5

Introduction: College Graduates and Underemployment 8

Part 1. The Landscape of Underemployment 10

Underemployment Rates 10
Severity of Underemployment 12

Part 2. Factors Related to Underemployment 15

Degree Field 16
Institution Type 22
Institutional Selectivity and Concentration of Low-Income Students 23
Internships 24
Implication: The Interplay of Program of Study and Selectivity, a Decision Matrix 29
Gender 30
Race/Ethnicity 31
Geography 32

Part 3. Escaping Underemployment 34

Initial Occupation 34
Advanced Degrees 37

Recommendations for Policymakers, Colleges and Universities, and Students 42

Bibliography 46

Appendices 48

Endnotes 55

Talent Disrupted — February 2024 4

Executive Summary
Most students, families, policymakers, and fare in the job market over their first decade of post-
educators look to higher education in large part as a college employment. We measured the prevalence
bridge to economic opportunity and upward mobility. and severity of underemployment and the cost in
Today, however, some are calling into question lost earnings, as well as analyzed how these are
whether higher education is delivering on that associated with a range of factors, including degree
promise. While a college education is still worth it for field, student characteristics (e.g., race/ethnicity and
the typical graduate, it is not a guarantee: college gender), institutional characteristics (e.g., selectivity,
students face an increasing degree of risk. One of concentration of low-income students, and type),
the biggest risks students face is that their degree and internship participation.
will not provide access to a college-level job. Today,
only about half of bachelor’s degree graduates
secure employment in a college-level job within a While many four-year college graduates
year of graduation. earn advanced degrees, our analysis
Using a combination of online career histories of focuses primarily on workers with a
tens of millions of graduates, as well as census terminal bachelor’s degree (i.e., no
microdata for millions of graduates, we developed advanced degree).
a comprehensive picture of how college graduates

College-level employment and

underemployment
In this report, the term “college-level employment” (or
“college-level job”) refers to employment in occupations
that typically require a four-year college degree, and
“underemployment” refers to the experience of four-year
college graduates who are employed in jobs that don’t typically
require a bachelor’s degree. For more detail on how college-
level employment and underemployment are defined, refer to
the methodology appendix of this report.

Talent Disrupted — February 2024 5

KEY FINDINGS

Underemployment is a large and persistent problem. In spite of

a historically tight labor market, the underemployment of college graduates
remains stubbornly high. Overall, 52 percent of graduates are underemployed a
year after graduation. Even a decade after graduation, 45 percent of graduates are
underemployed.

The first job after graduation is critical. Graduates who start out in a college-
level job rarely slide into underemployment, as the vast majority of them (79 percent)
remain in a college-level occupation five years after graduation. Of those employed in
college-level occupation five years after graduating, 86 percent were still in a college-
level job 10 years out.

Underemployment is sticky. Seventy-three percent of graduates who start out

underemployed remain so 10 years after completing college, making them at that
point about 3.5 times more likely to be underemployed compared with those who start
out in a college-level job.

Underemployment carries a heavy financial cost. A recent graduate

employed in a college-level job typically earns about 88 percent more than a high-
school diploma holder, while an underemployed graduate typically earns only about
25 percent more than someone with no education beyond high school.3 This leaves
underemployed graduates on weaker financial footing as they start their careers,
especially those with substantial student loan debt.

Underemployment rates vary greatly by college major. Graduates

with degrees that involve a substantial amount of quantitative reasoning, such as
computer science, engineering, mathematics, or math-intensive business fields (e.g.,
finance, accounting), experience the lowest underemployment rates (i.e., less than 37
percent), especially right out of college. Underemployment rates also are low for those
who study education or health programs (e.g., nursing). Graduates with degrees in
public safety and security, recreation and wellness studies, or general business fields
(e.g., marketing) tend to face much higher levels of underemployment (i.e., 57 percent
or higher).

Talent Disrupted — February 2024 6

KEY FINDINGS

STEM is not a silver bullet. While policymakers typically think of STEM

(science, technology, engineering, and mathematics) programs as a sure pathway
to college-level employment and high wages, the reality is more nuanced.
Graduates with a bachelor’s degree in computer science, engineering, or
mathematics tend to experience very low underemployment, while those with a
degree in a life sciences field (e.g., biology) tend to face higher underemployment
rates.4

College-level employment rates are higher for those who complete

an internship. There is a strong connection between internships and college-level
employment after graduation. Controlling for factors such as gender, race/ethnicity,
and institutional characteristics, the odds of underemployment for graduates who
had at least one internship are 48.5 percent lower than those who had no internships,
and the benefits associated with completing an internship are relatively strong across
degree fields.

Institution type, race/ethnicity, gender, and geography matter with

respect to post-graduation employment outcomes, but typically
not as much as college major or internships. Graduates of more selective
institutions are less likely to experience underemployment than those who attended
more inclusive (and typically less resourced) institutions. Black and Hispanic students
are substantially more likely than students of other races and ethnicities to wind
up underemployed, and men are more likely to be underemployed than women.
Underemployment also varies substantially by state. While all of these differences are
meaningful, none of them explains as much of the differences in underemployment
rates as college major and internship completion.

Talent Disrupted — February 2024 7

Introduction

College Graduates and Underemployment

America’s colleges and universities stand in service For some underemployed graduates, the path to
to a broad range of aspirations. They are relied professional fulfillment may materialize over time,
upon to enrich society and empower individuals, as they gradually ascend the career ladder. For
fueling the advancement of knowledge, sparking many others, however, their potential may remain
the genesis of groundbreaking ideas, fostering permanently untapped.
personal autonomy, instilling democratic values, and
In this report, we examine outcomes both for college
nurturing civic engagement. Yet, for the American
haves and have-nots: Those who secure access to
public, one purpose often stands out: career
college-level jobs and those who find themselves
preparation.
underemployed after graduating—that is, employed
Higher education has become inextricably linked in an occupation that doesn’t require or make
to the American Dream. College often is seen as meaningful use of a college degree. Specifically, we
a singular gateway to economic opportunity and examine post-completion employment outcomes
upward mobility. Many students choose college of graduates with a terminal bachelor’s degree5 in
under the assumption that a degree will unlock a terms of their access to college-level jobs.6
lucrative career and secure their place within the
Strada Institute and Burning Glass first studied this
middle class. Employers, in turn, rely on colleges to
phenomenon together in 2018. But our economy
supply qualified talent. Higher education advocates,
has undergone significant change since then, and
championing the cause of increased enrollment
our original analysis left a number of questions
and degree attainment, paint earning a degree as
unanswered. Building upon our original report
the cornerstone of prosperity. Their argument—that
and analysis,7 and using a combination of public
a college-educated workforce is key to economic
census data and novel résumé and professional
growth in the 21st-century knowledge economy and
profile sources, we examine underemployment
that a college education is a golden ticket to career
in greater depth. We measure the prevalence and
success—is compelling.
severity of underemployment and the cost in lost
However, the promise of higher education is not earnings and analyze how these vary by degree field,
always fulfilled. While college graduates typically student characteristics, institutional characteristics,
enjoy a significant advantage in the labor market internship participation, and geography. Finally, we
over those with only a high school diploma, many analyze how labor market outcomes play out for
find themselves grappling with an unexpected initially underemployed graduates: Who manages
reality—a disconnect between their academic to exit underemployment, and what routes do they
achievements and their economic prospects. follow to escape?

Talent Disrupted — February 2024 8

This report is organized by the following topics and research questions:

1
The Landscape of Employment Outcomes for Recent College Graduates

• How likely are college students to graduate and secure employment in college-level jobs versus
become underemployed?

• What proportion of underemployed graduates is severely versus moderately underemployed?

• How do earnings premiums vary for underemployed graduates and those employed in college-level
jobs?

2
Factors Related to Underemployment

• To what extent are different factors such as degree field, institutional characteristics, internship
participation, and geography, as well as gender and race/ethnicity, associated with varying odds of
becoming underemployed?

3
Escaping Underemployment

• How does the probability of escaping underemployment vary by degree field, institution type, and
initial occupation?

• How likely are underemployed graduates to enroll in graduate degree programs?

• How does earning an advanced degree increase the likelihood of securing a college-level job and
the probability of escape for underemployed graduates?

Talent Disrupted — February 2024 9

Part 1.

The Landscape of Underemployment

Despite the fact that most individuals attend Underemployment Rates
college largely because of the promise of
Fifty-two percent of graduates with a terminal
opportunity and access to a different set of jobs and
bachelor’s degree are underemployed one year
careers, most students who start college either do
after completing; 10 years after completing, 45
not complete their program or do not get hired into
percent are underemployed. Among graduates
a college-level job. Bachelor’s degree attainment,
with a terminal bachelor’s degree, a slight
including those who went on to earn advanced
majority secure employment in a college-level
degrees, has grown substantially for several
job within the first 10 years following graduation.
decades—now at 43 percent for adults between
Of those who do, most do so within the first year
the ages of 30 and 34.8 Meanwhile, the share of
of graduation (Figure 1.1). For every 100 college
graduates employed in college-level jobs has not
graduates with a terminal bachelor’s degree, 48
increased across sectors and demographic groups.
are employed in college-level jobs one year after
The first job following college graduation is critically graduation and 55 five years after graduation; 10
important for most individuals. Graduates who years after completing, that number is still only
start out in a college-level job typically remain 55. Approximately 27 percent of underemployed
in a college-level job, while those who start out graduates escape underemployment between one
underemployed are four times as likely to be and 10 years after graduation, and 21 percent of
underemployed as those who start out in a college- graduates employed in college-level jobs fall into
level job. What’s more, being underemployed has underemployment. However, the vast majority of
a steep financial cost: Graduates employed in a graduates who start in college-level jobs stay in
college-level job typically earn 50 percent more than them over time, while underemployed graduates
those who are underemployed. largely remain underemployed.

Figure 1.1 Employment outcomes by years after graduation

1 year post-completion 5 years post-completion 10 years post-completion

48 55 55
College-level job

100
College
Graduates

52
45 45 Underemployed

Source: Burning Glass Institute analysis of Lightcast Career Histories Database, 2022.
Calculated for workers with a terminal bachelor's degree.

Talent Disrupted — February 2024 10

 Graduates who start out in a college-level job largely level job one year after graduation are almost three
remain in employment appropriate to their degree, times as likely to be employed in a college-level job
while underemployed graduates are about 3.5 times 10 years after graduation (compared with initially
as likely to be underemployed a decade later. The underemployed graduates), while those who start
odds that a four-year college graduate will wind out underemployed are about 3.5 times as likely
up underemployed 10 years out vary substantially to be underemployed 10 years after graduation
based on whether they start out in a college-level (compared with graduates who start in a college-
job (Figure 1.2). Those who are working in a college- level job).

Figure 1.2 Probability of college-level employment 10 years after graduation

1 year post-completion 10 years post-completion

College-level job: 79

College-level job 100

Underemployed: 21

College-level job: 27

3.5x
Difference

Underemployed 100

Underemployed: 73

Source: Burning Glass Institute analysis of Lightcast Career Histories Database, 2012–2022.
Calculated for workers with a terminal bachelor's degree.

Talent Disrupted — February 2024 11

Severity of Underemployment

Most underemployed college graduates retail sales, food service, and blue-collar roles in
are severely underemployed. Among construction, transportation, and manufacturing
underemployed recent graduates, the (Figure 1.4). A relatively small group of these
vast majority (88 percent) are severely graduates (12 percent) are moderately
underemployed—that is, working in jobs that underemployed, i.e., working in jobs that require
typically require only a high school education or some education or training beyond high school
less (Figure 1.3), such as jobs in office support, but less than a bachelor’s degree.

Figure 1.3 Severity of underemployment, five years after completion

12%
Moderately
underemployed

88%
Severely
underemployed

Source: Burning Glass Institute analysis of Burning Glass Institute Career Histories Database and
American Community Survey, 2022. Underemployment calculated for workers with a terminal
bachelor's degree five years after graduation.

Talent Disrupted — February 2024 12

Figure 1.4 Employment of severely underemployed college graduates by occupation

Information and record clerks 1,089k

Supervisors of sales 1,005k

Retail sales workers 759k

Sales representatives, services 611k

Secretaries and administrative assistants 602k

Other sales and related workers (e.g. cashiers, rental) 548k

Other office and administrative support 535k

Other management occupations (e.g. food service managers) 534k

Sales representatives, wholesale and manufacturing 405k

Material moving 395k

Food and beverage serving 370k

Material recording, scheduling, dispatching, and distributing 370k

Construction trades 355k

Other production occupations 330k

Other personal care and service 318k

Supervisors of office and administrative support 299k

Motor vehicle operators 246k

Financial clerks 234k

Health technologists and technicians 83k

Source: Burning Glass Institute analysis of American Community Survey, 2022.

Employment calculated for workers with a terminal bachelor's degree five years after graduation.

Talent Disrupted — February 2024 13

 Underemployed graduates earn 33 percent only $40,000. By contrast, recent graduates
less than those working in college-level employed in college-level occupations earn
jobs. Underemployed college graduates earn $60,000, 88 percent more than the typical high
substantially less than the typical college school graduate and 50 percent more than
graduate and far less than graduates employed their underemployed peers. In fact, earnings
in college-level jobs (Figure 1.5). While recent of underemployed graduates are substantially
college graduates earn $50,000 annually, closer to those without a degree than they are to
underemployed college graduates earn peers employed in college-level jobs.

Figure 1.5 Earnings premium over high school graduates and median annual earnings by educational attainment
for recent college graduates with a terminal bachelor's degree

EARNINGS PREMIUM OVER HIGH SCHOOL MEDIAN ANNUAL EARNINGS

Employed in college-level occupation 88% ($28k) $60k

Bachelor's degree (all graduates) 56% ($18k) $50k

Underemployed college graduate 25% ($8k) $40k

$20k difference
Some college, no degree 9% ($3) $35k (˜33%)

High school graduate 0% $32k

Source: Burning Glass Institute analysis of American Community Survey, 2022. Calculated for workers
with a terminal bachelor's degree aged 22–27, employed full-time, year-round, and not enrolled in school.

Talent Disrupted — February 2024 14

Part 2.

Factors Related to Underemployment

Many factors are associated with the odds of a business degrees. More quantitative STEM
graduate landing a college-level job, such as: fields (e.g., computer science and engineering)
stand apart from less quantitative STEM fields
• Internship participation during college
(e.g., biology and life sciences) in the college-
• Institutional selectivity (i.e., inclusive,
level employment rates of their graduates.
selective, or more selective)
Similarly, math-intensive business fields such as
• Institution type (public, private nonprofit,
accounting and finance have substantially higher
for-profit)
rates of college-level employment compared
• Institutions’ share of low-income students
with general business, human resources, and
• A graduate’s college major or degree field
marketing fields.
• Demographic characteristics (e.g., gender,
race/ethnicity) The likelihood of college-level employment
• Where graduates live and work also varies by the type of institution attended.
Graduates of for-profit colleges experience
A graduate’s choice of degree field is strongly
especially low rates of college-level employment,
related to their likelihood of obtaining college-
as do graduates of more inclusive colleges and
level employment. Many have argued that choice
those with higher concentrations of low-income
of college major is irrelevant to the long-term
students.
career prospects of graduates.9 However, the
available evidence suggests otherwise: Not only In the 1990s, women surpassed men in
do majors matter, but with respect to a graduate’s educational attainment, a gap that has continued
odds of securing a college-level job, they can to grow in the years since,10 and they now
matter more than the school they attend. A comprise the majority of college-educated
student who earns a degree in health, education, workers.11 Women are also more likely to secure
or engineering from an inclusive college or college-level jobs than male college graduates.
university (i.e., those with relatively few admission Among racial and ethnic groups, Asian graduates
requirements), for example, is more likely to get are the most likely to secure college-level jobs,
a college-level job than a student who earns a while Black graduates are the least likely.
degree in biology, psychology, communications,
There is substantial variation in underemployment
arts, or non-math-intensive business fields (e.g.
across states, ranging from 40 percent in
management, marketing, or human resources),
Maryland to 57 percent in Hawaii, likely due to
even at a highly selective institution.
a combination of factors such as the industry
Graduates with degrees in fields with more and occupational composition of a state’s labor
quantitative rigor have greater odds of securing market, the education and skills of the state’s
college-level jobs than their peers. This is existing workforce, interstate migration of college
true even within STEM (science, technology, graduates, and the degree and skill composition
engineering, and mathematics) degrees and of newly minted college graduates in each state.

Talent Disrupted — February 2024 15

Degree Field

Graduates with a degree in public safety and underemployment rates (Figure 2.1). While most
security, recreation and wellness studies, or employers of college graduates value critical
a less math-intensive business field are more thinking and communication skills, many
than twice as likely to be underemployed employers of college graduates also appear to
than graduates with a degree in health, place a premium on the kinds of quantitative
engineering, or a math-intensive business field. reasoning skills that are cultivated in fields such
There is a strong association between college as engineering, computer science, mathematics,
major (e.g., degree field) and post-completion and math-intensive business programs.

Figure 2.1 Occupational employment outcomes by degree field College-level employed Underemployed

Health professions and related programs (e.g., nursing) 77% 23%

Engineering 74% 26%

Business: math-intensive (e.g.finance, accounting) 71% 29%

Architecture and planning 70% 30%

Education 66% 34%

Mathematics and statistics 65% 35%

Computer science 64% 36%

Physical sciences 56% 44%

Public administration and social service professions 56% 44%

All four-year college graduates 55% 45%

Biological and biomedical sciences 53% 47%

Multi/interdisciplinary studies 51% 49%

Social sciences 49% 51%

Communication, journalism, and related programs 47% 53%

Psychology 47% 53%

Visual and performing arts 46% 54%

Humanities and cultural studies 45% 55%

Business: other (e.g., management, marketing, HR) 43% 57%

Other fields 43% 57%

Recreation and wellness studies 40% 60%

Public safety and security 32% 68%

Source: Burning Glass Institute analysis of Burning Glass Institute Career Histories Database, 2022.
Calculated for workers with a terminal bachelor's degree five years after graduation.

Talent Disrupted — February 2024 16

Figure 2.2 Earnings premium over high school by degree field

EARNINGS PREMIUM OVER HIGH SCHOOL MEDIAN ANNUAL EARNINGS

Computer science 125% 72k

Engineering 125% 72k

Mathematics and statistics 103% 65k

Business: math-intensive 100% 64k

Health professions and

75% 56k
related programs

Social sciences 63% 52k

All four-year college graduates 56% 50k

Physical sciences 56% 50k

Architecture and planning 56% 50k

Business: other 56% 50k

Other fields 50% 48k

Communication, journalism,
47% 47k
and related programs

Multi/interdisciplinary studies 41% 45k

Biological and biomedical sciences 37% 44k

Public administration
34% 43k
and social service professions

Public safety and security 31% 42k

Humanities and cultural studies 28% 41k

Education 28% 41k

Visual and performing arts 25% 40k

Recreation and wellness studies 25% 40k

Psychology 25% 40k

Source: Burning Glass Institute analysis of American Community Survey, 2022. Calculated for
workers ages 22–27 with a terminal bachelor's degree, employed full-time, year-round
and not enrolled in school.

Talent Disrupted — February 2024 17

 Figure 2.3 College-level employment rate and earnings premium over high school graduates, by degree field

140%

Computer science Engineering

120%

Mathematics
100% Business: math-intensive
Earnings premium over high school

80%

Health professions

Social sciences
60%
Business: other Physical sciences Architecture
Median earnings premium over high school
Other fields
Communications

40% Multi/interdisciplinary studies

Biology
Public administration
Public safety and security
Humanities and cultural studies Education
Recreation Psychology
20% Visual and performing arts

Overall college-level employment rate

0%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

College-level employment rate

Source: Burning Glass Institute analysis of American Community Survey, 2022 and Lightcast Career Histories Database, 2022.
Underemployment is calculated for workers with a terminal bachelor's degree five years after graduation; earnings are calculated
for workers ages 22–27 with a terminal bachelor’s degree, employed full-time, year-round and not enrolled in school.

Talent Disrupted — February 2024 18

 Not all STEM majors are created equal: Math-intensive business fields such as
Graduates with a terminal bachelor’s degree in accounting, business economics, and
computer science, engineering, or math have finance have substantially lower rates of
substantially higher college-level employment underemployment than general business
rates and earnings than those with a degree in degrees. Graduates with a math-intensive major,
the physical sciences or life sciences. Popular such as engineering, math, or physical sciences,
majors like biology do not have the same ready- have among the highest rates of college-level
made career paths at the undergraduate degree employment, while fields with the lowest rates
level, but many such graduates complete a of college-level employment tend to be less
graduate degree to become a medical doctor quantitatively rigorous.
or research scientist. As a result, graduates
A similar pattern can be observed within broad
in some STEM fields face many of the same
categories of degree fields. Among business degree
challenges in landing a college-level job as do
fields, for example, quantitatively rigorous fields
liberal arts majors. For example, 53 percent of
such as accounting and finance have substantially
biology graduates are employed in a college-
higher rates of college-level employment
level job five years after graduating, compared
compared with general business, human resources,
with 74 percent of engineering graduates.
and marketing fields (Figure 2.4): 76 percent
of accounting graduates secure college-level
jobs, compared with 30 percent of graduates in
hospitality administration or management.

Implication: To lower their risk of underemployment,

students can develop complementary quantitative
and qualitative reasoning skills
Graduates with quantitative reasoning skills are highly sought after
in today’s data-driven market. Students pursuing less quantitatively
rigorous fields such as liberal arts and humanities might consider
taking courses that involve quantitative rigor, such as statistics,
data analysis, or computer science, to complement their qualitative
reasoning skills.

Talent Disrupted — February 2024 19

 Figure 2.4 Occupational employment outcomes for selected business degree fields

Management sciences and quantitative methods 90% 10%

Business: math-intensive

Accounting and related services 76% 24%

Management information systems and services 71% 29%

Management sciences and quantitative methods 71% 29%

Finance and financial management services 63% 37%

Business/managerial economics 61% 39%

All four-year college graduates 55% 45%

Human resources management and services 49% 51%

Business/commerce, general 47% 53%

Business: other (e.g., management, marketing, hr)

Entrepreneurial and small business operations 47% 53%

International business 47% 53%

Real estate 44% 56%

Business administration, management and operations 43% 57%

Marketing 42% 58%

Business, management, marketing, and related support services 39% 61%

Business/corporate communications 39% 61%

General sales, merchandising and related marketing operations 33% 67%

Hospitality administration/management 30% 70%

Specialized sales, merchandising and marketing operations 28% 72%

College-level employed Underemployed

Source: Burning Glass Institute analysis of Lightcast Career Histories Database, 2022.
Calculated for workers with a terminal bachelor's degree five years after graduation.

Talent Disrupted — February 2024 20

 Health, education, and engineering majors at employment outcomes than institutional
inclusive public colleges and universities have characteristics. In fact, graduates of inclusive
lower rates of underemployment than biology, public colleges with degrees in fields like health,
psychology, and communications majors at education, and engineering are more likely to get
selective public colleges. As individuals select college-level jobs than graduates of selective
a college or university to attend, it is noteworthy public colleges with degrees in fields more
that post-graduation employment in a college- prone to underemployment, such as biology,
level job is more closely tied to what they study psychology, communications, or visual and
than where they study. Degree fields account performing arts (Figure 2.5).
for more of the variation in college graduates’

Figure 2.5 Underemployment by degree field and institutional selectivity for public four-year colleges and universities

Health professions (e.g., nursing) 23%

Education 36%
Inclusive public colleges

Engineering 33%

Computer science 39%

Biological and biomedical sciences 56%

Communications 60%

Psychology 59%

Visual and performing arts 58%

All four-year college graduates 45%

Health professions (e.g., nursing) 24%

Education 32%
Selective public colleges

Engineering 26%

Computer science 36%

Biological and biomedical sciences 43%

Psychology 52%

Communication, journalism, and related programs 52%

Visual and performing arts 52%

Source: Burning Glass Institute analysis of Lightcast Career Histories Database, 2022.
Calculated for workers with a terminal bachelor's degree five years after graduation.

Talent Disrupted — February 2024 21

 Fields of study are associated with not only service occupations, biology graduates are more
probability of underemployment but also than three times as likely to escape as education
likelihood of escape.12 Graduates’ likelihood majors. Along with underemployment rates, both
of escaping underemployment and securing the severity of underemployment and likelihood of
college-level jobs varies, even when they start escaping underemployment are important factors
in the same initial occupations.13 For example, that inform a nuanced understanding of college
among graduates employed in personal care and graduates’ employment outcomes.14

Institution Type

The gap between underemployment rates What’s more, the share of graduates who moved
of for-profit and public college graduates out of underemployment, and into college-level
increases slightly in the first five years after jobs, is lower than that for other institutions.
graduation. For-profit colleges have come
In general, the type of institution graduates
under increasing scrutiny,15 especially over the
attend is related to their odds of becoming
past decade. Like community colleges, for-
underemployed after graduation, even when
profit colleges serve a student population that
controlling for a variety of other factors such
faces the greatest barriers to opportunity, but
as degree programs, and the race or ethnicity,
graduates of for-profit colleges are also the least
and sex of students.16 Compared with graduates
likely to secure college-level jobs compared
at public schools, the odds of becoming
with graduates of public and nonprofit colleges
underemployed are 23 percent lower for
(Figure 2.6).
graduates of private nonprofit institutions, but
11 percent higher for graduates of for-profits.
The likelihood of becoming underemployed also
Figure 2.6 Underemployment rate by institutional type differs for graduates of schools that specialize
and years since graduating in serving distinct racial and ethnic groups.
65%
Graduates of Historically Black Colleges and
63%
Universities (HBCUs), for example, are 15 percent
less likely to be underemployed, while graduates
60%
58% 58%
from Hispanic Serving Institutions (HSIs) are 3
percent less likely to be underemployed when
55% 54%
compared with graduates at all other institution
types.
50% 49%

46% 46%
45%
43% 43%

40%
1 5 10
Years since completing

For-profit Public Private nonprofit

Source: Burning Glass Institute analysis of Lightcast Career Histories

Database, 2022. Calculated for workers with a terminal bachelor's degree
one, five and ten years after graduation.

Talent Disrupted — February 2024 22

Institutional Selectivity and Concentration of Low-Income Students

Graduates of more selective colleges and The dynamics of institutional characteristics

colleges that serve fewer low-income students like selectivity and Pell intensity are complex.
are more likely to be employed in college- In general, underemployment rates tend to
level jobs. More selective colleges have many be higher among graduates of more inclusive
advantages relative to inclusive colleges. They colleges and universities and at institutions
typically have more resources to support students with higher concentrations of Pell-eligible
through high-quality career services, for example, students (Figure 2.7A, 2.7B). At the same time, the
as well as alumni networks to help students build concentration of high-income students as well
social capital through mentorships and less formal as of white and Asian students at more selective
“loose connections” that can be beneficial in job colleges is increasing, while low-income as well
searches. Graduates of selective colleges are also as Black and Hispanic students are increasingly
often perceived by employers, accurately or not, as concentrated at inclusive schools—evidence
being more qualified because employers assume that other, more intricate correlations between
that the college’s selection process is a proxy race and wealth and geography may be at play
for intelligence, motivation, industry, and talent. here as well.18 Institution type, selectivity, and
Indeed, when compared with graduates from the concentration of low-income students all
inclusive institutions, the likelihood of eventually relate to the likelihood that graduates become
becoming underemployed is 4 percent less among underemployed after graduating.19
graduates of selective institutions and 32 percent
less at more selective institutions.17

Figure 2.7A Figure 2.7B

Underemployment by institutional selectivity* Underemployment by concentration of low-income
students*

60% 65%
63%
57%

55% 54% 60%

58%
57%
56%
50% 55%
50% 49%
55%

46% 46%
45% 50% 50%
45% 50%
48%
47% 47%

40% 39%
38% 45%

41% 41%
35% 40%
1 5 10 1 5 10
Years since completing Years since completing

Inclusive Selective More selective Very high High Moderate Low

Source: Burning Glass Institute analysis of Lightcast Career Histories Database, 2022; U.S. Department of Education, National Center for Education
Statistics, Integrated Postsecondary Education System, 2021.. Calculated for workers with a terminal bachelor's degree one, five, and ten years
after graduation.

*Note: For how we define these categories, please refer to the methods section of Appendix A.

Talent Disrupted — February 2024 23

Internships

For college students, internships have emerged Graduates who completed an internship
as a crucial stepping stone toward securing are less likely to become underemployed
a successful career. Our analysis suggests that across nearly every institution type. Students
completing even a single internship during college completing internships are at much lower risk of
substantially enhances a graduate’s access to becoming underemployed when compared with
college-level jobs, reducing their likelihood of those who do not. Fifty-four percent of those
underemployment. Internships provide valuable who had not completed an internship during
hands-on experience, enabling students to apply their college were underemployed five years after
knowledge in real-world contexts, develop industry- graduating, versus 41 percent of those who did
specific skills, and gain exposure to the professional complete an internship. The largest differences
environment. This practical experience not only are for graduates at for-profit institutions, where
makes students more desirable candidates but also underemployment for internship participants is
equips them with the confidence and competence 14 percentage points lower than those who had
to navigate the demands of the workplace effectively. not completed one (Figure 2.8). School selectivity
Moreover, internships serve as a bridge connecting and institution type interact with the returns to
the academic world to the professional realm, a college internship in an interesting way. Within
enabling students to build valuable professional public institutions, for example, the gap between
networks, gain insights into potential career paths, underemployment rates of internship and non-
and establish themselves within their chosen field. internship recipients rises from 11 percentage
points at inclusive publics to 12 percentage
Overall, the results of this study show that internship
points at selective and 14 percentage points at
participation is strongly associated with lower
more selective institutions. At private nonprofits,
underemployment after graduation. In fact, the
graduates at inclusive schools see a small gain
odds of becoming underemployed after completing
from internship participation, while the differences
a bachelor’s degree are 49 percent lower for
at selective and more selective institutions are
students who reported having participated in an
both 10 percentage points.
internship as part of their college education.20

Talent Disrupted — February 2024 24

Figure 2.8 Underemployment rate by internship participation and institutional selectivity and type

Private for-profit 61%

55%

Inclusive public 55%

44%

54%
All four-year college graduates
41%

53%
Selective public
41%

51%
Inclusive private nonprofit
47%

Selective private nonprofit 49%

39%

More selective public 45%

31%

40%
More selective private nonprofit
30%

No internship Internship

Source: Burning Glass Institute analysis of Lightcast Career Histories Database, 2022; U.S. Department of Education, National Center for Education
Statistics, Integrated Postsecondary Education System, 2021. Calculated for workers with a terminal bachelor's degree five years after graduation.

The link between internship participation and While internships are associated with an
underemployment varies by degree field. increased likelihood of securing a college-
The benefits of internship participation on level job across degree fields, the benefit they
underemployment vary by major (Figures 2.9 appear to confer is not enough to offset key
and 2.10). For those completing degrees in fields risk factors. Graduates with degrees in fields
like computer and information sciences, 38 with lower rates of underemployment overall
percent of graduates who did not complete an also seem to gain the most from internship
internship were underemployed five years later, participation. In contrast, for students with a
compared with only 20 percent for graduates degree in public safety and security, recreation
who had at least one internship. Similarly, and wellness, communications, psychology,
the difference in underemployment rates for and general business, underemployment rates
graduates with and without an internship is even among those who complete internships
especially large for engineering graduates (29 are higher than among graduates without
percent versus 16 percent) and math-intensive internships in math-intensive business,
business degree holders (31 percent versus 16 engineering, or education degrees (Figure 2.9).
percent). For graduates in other majors, the gap
in underemployment rates between those who
did and did not pursue an internship during their
college tenure is typically much smaller.

Talent Disrupted — February 2024 25

Figure 2.9 Underemployment rate by internship participation and degree field

64%
Public safety and security 68%

51%
Recreation and wellness studies
61%

42%
Business: other (e.g., management, marketing, HR)
59%

42%
Other fields 59%

42%
Humanities and cultural studies 56%

37%
Visual and performing arts
56%

33%
Social sciences
55%

43%
Communication, journalism, and related programs
54%

41%
All four-year college graduates 54%

41%
Psychology
54%

38%
Multi/interdisciplinary studies 50%

44%
Biological and biomedical sciences 47%

30%
Physical sciences
45%

44%
Public administration and social service professions
44%

20%
Computer science 38%

22%
Mathematics and statistics
38%

28%
Education
34%

19%
Architecture and planning 33%

16%
Business: math-intensive (e.g., accounting, finance) 31%

16%
Engineering
29%

Source: Burning Glass Institute analysis of Lightcast Career Histories Database, 2022. Internship No internship
Calculated for workers with a terminal bachelor's degree five years after graduation.
Note: graduates with degrees in health professions are excluded.

26
 Internships have the strongest relationship with The differential for Hispanic graduates is
Black graduates’ ability to obtain college-level greatest at both selective public (16 percent)
jobs compared to other racial groups. Students and selective private nonprofits (15 percent),
from different racial and ethnic backgrounds while white graduates gain the most at more
stand to benefit from internship participation selective publics (14 percent). However, not all
differently depending on the type of institution gains from internship participation are equally
they attend (Figure 2.10). Underemployment sizable. For Asian graduates at more selective
rates for Black graduates at selective private private nonprofit schools, the difference
nonprofit and more selective public institutions is only 7 percentage points, and for white
are 17 percentage points lower among graduates graduates at inclusive private nonprofits,
who did an internship during their college tenure internship participation only seems to reduce
versus those who did not. Asian graduates of underemployment by just 3 percentage points.
selective and more selective public institutions
also see a similar 17 percentage point benefit.

Talent Disrupted — February 2024 27

Figure 2.10 Underemployment by internship participation, race/ethnicity, institution type and selectivity

41%
All four-year college graduates 54%

41%
White, selective public 53%

40%
White, selective private nonprofit 48%

33%
White, more selective public 46%

30%
White, more selective private nonprofit 41%

45%
White, inclusive public 55%

48%
White, inclusive private nonprofit 50%

40%
Hispanic, selective public 56%

36%
Hispanic, selective private nonprofit 50%

35%
Hispanic, more selective public 47%

35%
Hispanic, more selective private nonprofit 42%

43%
Hispanic, inclusive public 56%

53%
Hispanic, inclusive private nonprofit 53%

45%
Black, selective public 59%

41%
Black, selective private nonprofit 58%

34%
Black, more selective public 51%

33%
Black, more selective private nonprofit 42%

50%
Black, inclusive public 61%

48%
Black, inclusive private nonprofit 59%

30%
Asian, selective public 47%

25%
Asian, selective private nonprofit 40%

23%
Asian, more selective public 40%

27%
Asian, more selective private nonprofit 34%

34%
Asian, inclusive public 50%

36%
Asian, inclusive private nonprofit 40%

Source: Burning Glass Institute analysis of Lightcast Career Histories Database, 2022. Internship No internship
Calculated for workers with a terminal bachelor's degree five years after graduation.

28
Implication: The Interplay of Program of Study and Selectivity, a Decision Matrix

Even before they step foot on campus, prospective attend a selective or inclusive institution. However,
students face decisions of significant consequence those who enroll in programs or schools with lower
for their risk of underemployment: where to go and rates of college-level employment should strongly
what to study. Students who major in fields with consider complementing their program with
high college-level employment rates overall—such other experiences that increase their likelihood of
as health professions and math-intensive business success, such as paid internships, math-intensive
fields—face less risk regardless of whether they coursework, and proactive networking.

MORE
SELECTIVE
COLLEGE

HIGH UNDEREMPLOYMENT LOW UNDEREMPLOYMENT

VERY HIGH UNDEREMPLOYMENT MODERATE UNDEREMPLOYMENT

LESS
SELECTIVE
COLLEGE

HIGH-RISK DEGREE FIELD LOW-RISK DEGREE FIELD

Talent Disrupted — February 2024 29

Gender

Female college graduates are less likely these rates decrease to 49 percent for male
than male college graduates to become graduates and 44 percent for female graduates.
underemployed.21 One year after completing These trends accord with and compound related
college, 56 percent of male graduates and 52 gender-based differences in rates of college
percent of female graduates are underemployed enrollment, college completion and attainment,
(Figure 2.11). Ten years after completing college, and employment.

Figure 2.11 Underemployment rate by gender and years since graduation

60%

56%

55%

52%

50% 49% 49%

45% 44% 44%

40%
1 5 10

Years since completing

Female Male

Source: Burning Glass Institute analysis of Lightcast Career Histories Database, 2022.
Calculated for workers with a terminal bachelor's degree one, five, and ten years after graduation.

Talent Disrupted — February 2024 30

Race/Ethnicity

Black graduates are most likely to be These disparities reflect broader racial disparities
underemployed across races and ethnicities, in our education systems and in the labor
while Asian graduates are least likely. One market. Black, Hispanic, and Latino graduates
year after graduating, 47 percent of Asian remain concentrated at inclusive colleges that
graduates are underemployed compared with have fewer resources and support services,
60 percent of Black graduates, 57 percent of and less access to networks, while white and
Hispanic and Latino graduates, and 53 percent Asian students are increasingly concentrated
of white graduates (Figure 2.12). Five years at selective universities. Labor market
after graduation, the relative positions of the discrimination is also a factor that influences
racial and ethnic groups remain consistent, these outcomes: a wide body of research shows
even as all groups experience lower rates of consistently that Black graduates are less likely
underemployment: from 60 percent to 53 percent to be hired than other applicants with the same
for Black graduates, from 57 percent to 48 qualifications.22
percent for Hispanic and Latino graduates, from
53 percent to 46 percent for white graduates, and
from 47 percent to 40 percent for Asian graduates.

Figure 2.12 Underemployment rate by race/ethnicity

60%
60%
57%

55%
53% 53% 53%

50% 49%
48%
47%
46% 46%

45%

40%
40% 39%

35%
1 5 10
Years since completing

Black Hispanic / Latino White Asian

Source: Burning Glass Institute analysis of Lightcast Career Histories Database, 2022.
Calculated for workers with a terminal bachelor's degree one, five, and ten years after graduation.

Talent Disrupted — February 2024 31

Geography

Underemployment rates vary widely by state. In Hawaii, 57 percent of college graduates were
underemployed five years after completing, compared with 40 percent of graduates in Maryland (Figure
2.13). Dispersion across state-based estimates can be explained by an array of economic, education, and
individual factors affecting local labor market supply and demand, including:

• The occupational structure of a state’s • Talent migration. Flows of college graduates

labor market. All else being equal, states in and out of states may influence the ability
with a lower concentration of college-level of newly minted college graduates to secure
jobs (e.g., Hawaii, with a largely tourism- college-level jobs.
driven economy) are more likely to have
• The degree fields and skill composition
higher rates of underemployment.
of newly minted college graduates in the
• The education and skills of the state’s state. States whose graduates’ degree fields
existing workforce. In states with many and other skills are better-matched to the
college graduates per college-level job state’s talent needs will have lower rates of
opening, newly minted college graduates underemployment, on the margin.
are more likely to be underemployed than in
states with fewer college graduates for each
college-level job opening.

Talent Disrupted — February 2024 32

Figure 2.13 Underemployment rate by state

WA NH 43%
41%
ME
MT ND
VT 48% 52%
51% 46% MN
OR
43%
51%
ID SD WI MA 41%
46% WY 47% 43% NY 45%
MI
45% 45% RI 44%
IA
NE PA 43% CT 45%
NV 44%
49% OH NJ 45%
50% IL IN
UT 44% DE 47%
CO 44% 44%
41% WV
CA 47% KS MO 50% VA 43% MD 40%
45%
42% 43% KY 48%
DC 52%
NC 45%
TN 47%
AZ OK
NM AR
44% 44% SC 48%
50% 45%
MS GA
AL 45% 46%
47%
TX
LA
43%
47%

FL
AK 50%
43%

HI
57%

40-42% 43-45% 46-48% 49-51% 52-54% 55-57%

All four-year college graduates: 45%

Source: Burning Glass Institute analysis of American Community Survey, 2017–2022.

Calculated for workers with a terminal bachelor's degree ages 26–30.

Talent Disrupted — February 2024 33

Part 3.

Escaping Underemployment
Those who graduate into underemployment often create a playbook for better supporting those at
pay a heavy price—one that too often plays out risk, and yields understanding as to what kinds
across their careers. However, underemployment of levers and policy solutions may help others
need not be a life sentence. A meaningful share of in similar circumstances. For example, charting
underemployed graduates are eventually able to differences—across majors, first jobs, and onward
escape into college-level employment. Mapping career steps—is key both to avoiding pitfalls and
pathways for escaping underemployment helps improving chances of recovery.

Initial Occupation

For those who wind up underemployed, some Even for underemployed graduates of a given
jobs offer better prospects of advancing to major, the type of job they take on soon after
college-level employment. The ability to escape graduation has a strong relationship with their
underemployment in the first five years after likelihood of later moving into a college-level
leaving school depends in part on starting job. When it comes to underemployment, majors
occupation (Figure 3.1). Graduates who are matter. Even within degree fields, however,
severely underemployed (i.e., working in jobs that there are big differences in the likelihood of
require no more than a high school degree) are escaping underemployment based on the job
substantially less likely to escape than those who that graduates initially take (Figure 3.2). For
are moderately underemployed (i.e., working in example, among graduates with degrees in visual
jobs that require at least some education beyond and performing arts, the probability of escape is
high school but not a bachelor’s degree). Only double for those who start off in community and
16 percent of college graduates who initially are social service jobs (45 percent) versus office and
severely underemployed escape to college-level administrative support (21 percent).
employment within five years of completing,
whereas 26 percent of those who start out
moderately underemployed do so.

Talent Disrupted — February 2024 34

 Figure 3.1 Share of initially underemployed college graduates who escape underemployment by occupation group
and underemployment severity*

Life, physical, and social science (e.g. occupational health and safety) 53%

Architecture and engineering (e.g. surveying and mapping technician) 36%

Healthcare support (e.g. home health aide, nursing aide) 27%

Moderately underemployed

Healthcare practitioners and technical (e.g. paramedic, EMT) 24%

Educational instruction and library (e.g. library technician, library assistant) 21%

Arts, design, entertainment, sports, and media (e.g. broadcast technician) 20%

Protective service (e.g. firefighter, police officer) 20%

Personal care and service (e.g. hairdresser, manicurist) 15%

Installation, maintenance, and repair (e.g. mechanic, repairer) 13%

Legal (e.g., paralegal) 13%

Community and social service (e.g. community health worker) 39%

Management (e.g. food service manager) 21%

Office and administrative support (e.g. administrative assistant, payroll) 20%

Business and financial operations (e.g. claims adjuster, loan officer) 18%
Severely underemployed

Production (e.g. assembler, fabricator) 16%

Sales and related (e.g. cashier, sales representative) 13%

Food preparation and serving related (e.g. cook, waiter, bartender) 10%

Transportation and material moving (e.g., driver) 9%

Construction and extraction (e.g. carpenter, electrician) 9%

Farming, fishing, and forestry (e.g. farmworkers, fishing workers) 8%

Building and grounds cleaning and maintenance (e.g. janitor, cleaner) 4%

Moderately underemployed (i.e., employed in job that requires Severely underemployed (i.e., employed in a job that
some education beyond high school but not a bachelor’s degree) requires a high school education or less)

Source: Burning Glass Institute analysis of Lightcast Career Histories Database, 2022; Bureau of Labor Statistics' Employment and Typical Entry-Level
Educational Requirements by Occupation, 2021. Calculated for workers with a terminal bachelor's degree who are underemployed one year after graduation.
*Note: Each occupation group includes only workers who are moderately or severely underemployed, respectively, within
each group. For example, the healthcare support bar reflects only healthcare support workers who are moderately
underemployed, while the production bar represents only production workers who are severely underemployed.

Talent Disrupted — February 2024 35

 Figure 3.2 Share employed in college-level jobs five years after graduating, among those underemployed a year after
graduation, by degree field and initial occupation*
Biological and biomedical

Personal care and service 57%

Community and social service (e.g. community health worker) 43%

sciences

Life, physical, and social science (e.g. science technician) 41%

Architecture and engineering (e.g. surveying and mapping technician) 39%

management, marketing, hr)

Life, physical, and social science (e.g. science technician) 49%

Business: other (e.g.

Community and social service (e.g. community health worker) 37%

Office and administrative support 22%

Arts, design, entertainment, sports, and media

(e.g. entertainers and performers) 22%
Communication, journalism,

Community and social service (e.g. community health worker) 45%

and related programs

Production 38%

Office and administrative support 27%

Healthcare support 26%

Health professions and related
programs (e.g. nursing)

Community and social service (e.g. community health worker) 56%

Life, physical, and social science (e.g. science technician) 45%

Healthcare support 33%

Business and financial operations (e.g. claims adjuster) 31%

Life, physical, and social science (e.g. science technician) 56%

Social sciences

Community and social service (e.g. community health worker) 36%

Office and administrative support 28%

Production 26%
Visual and performing arts

Community and social service (e.g. community health worker) 45%

Educational instruction and library (e.g. library technician, library assistant) 26%

Production 24%

Office and administrative support 21%

Source: Burning Glass Institute analysis of Lightcast Career Histories Database, 2022. Calculated for
workers with a terminal bachelor's degree underemployed one year after graduation.
*Note: Each occupation group includes only workers who are moderately or severely underemployed, respectively, within
each group. For example, the healthcare support bar reflects only healthcare support workers who are moderately
underemployed, while the production bar represents only production workers who are severely underemployed.

Talent Disrupted — February 2024 36

Advanced Degrees

While advanced degree holders are not the principal bachelor’s is a terminal degree. Thirty-eight
focus of this report, many underemployed graduates percent of four-year college graduates go on to
go on to earn an advanced degree, whether as a earn an advanced degree, such as a master’s,
continuation of their planned education path or as professional, or doctoral degree (Figure 3.3). The
a means of escaping underemployment. Overall, rate at which college graduates earn advanced
those who earn advanced degrees represent a degrees varies substantially by their undergraduate
sizable minority of graduates—and their ranks degree field: from 23 percent for public safety and
could go part of the way toward explaining the high security and communications to 58 percent for
stickiness of underemployment for those whose biology and life sciences.

Figure 3.3 Advanced degree attainment by undergraduate degree field

Biological and biomedical sciences 58%

Physical sciences 52%

Education 50%

Public administration 50%

Mathematics and statistics 50%

Psychology 48%

Humanities and cultural studies 46%

Social sciences 44%

Engineering 41%

Multi/interdisciplinary studies 41%

Architecture and planning 40%

All four-year college graduates 37%

Health professions (e.g., nursing) 37%

Recreation and wellness 34%

Business: math-intensive (e.g., finance, accounting) 31%

Computer science 29%

Other fields 27%

Visual and performing arts 25%

Business: other (e.g., management, marketing, HR) 23%

Communication, journalism, and related programs 23%

Public safety and security 23%

Source: Burning Glass Institute analysis of American Community Survey, 2022. Calculated
for bachelor’s degree holders, ages 22–65.

Talent Disrupted — February 2024 37

 The share of underemployed graduates who Underemployed bachelor’s degree holders
enrolled in graduate degree programs grew who do go back and complete a graduate
significantly through the 2000s but has since degree typically achieve greater protection
been declining. For workers with bachelor’s against continued underemployment. For
degrees who find themselves underemployed, graduates of many programs of undergraduate
pursuing an advanced degree can offer a study, returning to school to pursue advanced
pathway to escape underemployment and training can be an effective route to college-level
access to higher-wage professions. In fact, in the employment (Figure 3.4). Among underemployed
2000s, the share of underemployed graduates undergraduates who leave the workforce and go
who enrolled in graduate degree programs grew back to graduate school, only 3 percent of those
every year. Since then, however, the rate at which who earn advanced degrees in mathematics
underemployed graduates pursue advanced and statistics remain underemployed after
degrees has been declining as the labor market completing graduate school. Those earning
has returned to full employment. In spite of this a graduate degree in engineering (4 percent),
decline, almost 1 in 5 underemployed graduates computer science (7 percent), health professions
enrolls in a graduate degree program within five and related programs (9 percent), or education
years of completing their bachelor’s degree. (10 percent) have similarly low rates of
underemployment.
Trends in the share of underemployed who
pursue graduate study vary widely by their However, not every graduate degree helps
bachelor’s degree field. The largest shares of mitigate underemployment to the same extent.
those underemployed who finished a bachelor’s For previously underemployed individuals who
degree in 2010 and enrolled in graduate school earn a graduate degree in general business
any time over the next five years were workers programs, such as management, marketing, and
with degrees in public administration (41 human resources-related programs, 24 percent
percent), biological and biomedical sciences (37 of graduates remain underemployed.
percent), psychology (36 percent), and physical
sciences (36 percent).

Talent Disrupted — February 2024 38

Figure 3.4 Occupational employment outcomes for graduate degree holders who were initially underemployed one year
after finishing their bachelor's program, by graduate degree field

Mathematics and statistics 97% 3%

Engineering 96% 4%

Multi/interdisciplinary studies 95% 5%

Physical sciences 94% 6%

Computer and information sciences, support services 93% 7%

Other fields 92% 8%

Biological and biomedical sciences 92% 8%

Psychology 92% 8%

Health professions and related programs (e.g. nursing) 91% 9%

Visual and performing arts 90% 10%

Recreation and wellness 90% 10%

Education 90% 10%

Communication, journalism, and related programs 90% 10%

Social sciences 89% 11%

Overall 89% 11%

Humanities and cultural studies 88% 12%

Architecture and related services 84% 16%

Public administration and social service professions 84% 16%

Public safety and security 83% 17%

Business: math-intensive (e.g., accounting, finance) 82% 18%

Business: other (e.g., management, marketing, HR) 76% 24%

College-level employed Underemployed

Source: Burning Glass Institute analysis of Lightcast Career Histories Database, 2022. Calculated for graduate
degree holders, including master’s and doctoral degrees, one year after completing the graduate program,
who were initially underemployed after completing a bachelor’s degree.

Talent Disrupted — February 2024 39

 Earning a graduate degree is not a sure bet. Among those with a master’s degree, just 10
While earning an advanced degree is an effective percent of those earning degrees in mathematics
route to college-level work for many, the efficacy and statistics are underemployed five years after
of this strategy varies substantially by advanced graduating, compared with 34 percent of those
degree program (Figure 3.5). The most common with master’s degrees in non-math intensive
advanced degree is the master’s degree, held by business fields, such as HR, management, and
75 percent of those with an advanced degree.23 marketing.

Figure 3.5 Underemployment rate by master’s degree field for all workers with a master’s degree

Mathematics and statistics 90% 10%

Health professions and related programs (e.g. nursing) 89% 11%

Education 86% 14%

Engineering 85% 15%

Architecture and related services 83% 17%

Business: math-intensive (e.g., accounting, finance) 82% 18%

Public administration and social service professions 82% 18%

Physical sciences 80% 20%

Psychology 79% 21%

Biological and biomedical sciences 77% 23%

Computer science 77% 23%

All master's degree holders 77% 23%

Humanities and cultural studies 76% 24%

Multi/interdisciplinary studies 75% 25%

Communication, journalism, and related programs 71% 29%

Social sciences 70% 30%

Recreation and wellness 69% 31%

Visual and performing arts 69% 31%

Business: other (e.g., management, marketing, HR) 66% 34%

Other fields 64% 36%

Public safety and security 51% 49%

College-level employed Underemployed

Source: Burning Glass Institute analysis of Lightcast Career Histories Database, 2022.
Calculated five years after completion of master’s degree.

Talent Disrupted — February 2024 40

 Implication: Escaping Underemployment
While underemployment can quickly become a permanent detour, there are steps
the underemployed can take to achieve college-level employment, including:

• Complete an advanced degree program. Depending on their long-term

career goals, individuals may consider pursuing an advanced degree. The
same evaluation of cost, likely post-degree employment, and earning power
undertaken for an undergraduate degree is important.

• Secure a starting job with better odds of escape. For those unable
to initially secure a college-level job, salary shouldn’t be the only
consideration for choosing among available options. Some initial jobs
have considerably higher probabilities of escape, even among those with
similar pay. In general, occupations in which more college graduates are
employed offer better prospects for escape (e.g., science technicians, allied
health professions, and teaching assistants), even when those occupations
do not themselves require a college degree for entry. Similarly, teaching
and human resources are among the most traveled escape routes for
underemployed college graduates.

• Consider opportunities in vibrant regions with abundant college-level

jobs. Graduates facing difficulty finding college-level jobs in their local
labor market may have better success by expanding their horizons beyond
their community. In some cases, graduates have difficulty finding college-
level jobs in particular areas, but their skills are in high demand in other
labor markets across the country. If a relocation is possible, graduates
may find more opportunities in regions where there are more abundant job
opportunities for graduates with their particular skill profile.

• Attain more quantitative skills in-demand in occupations with the

highest rates of college-level employment through short-term certificates,
bootcamps, or training programs.

Talent Disrupted — February 2024 41

Recommendations for Policymakers,
Colleges and Universities, and Students

Policymakers and institution leaders can substantially reduce the risk of underemployment
by dramatically increasing access to paid work-based learning opportunities and education-
to-career coaching; making the occupational outcomes of college programs transparent; and
adjusting funding models for public institutions so that all students interested in pursuing
degree programs associated with high-wage, college-level jobs can do so.

Recommendation 1.
Enable every college student to access at least one paid internship.

Today, only 29 percent of college graduates have completed a paid internship.24 However, paid

1 internships offer a proven route to college-level employment.

• Policymakers should offer incentives to employers to expand paid internships and invest in
partnerships between colleges and universities and employers to promote access to paid
internships.

• Colleges and universities should collaborate with employers to cultivate more paid internship
opportunities, especially in industries with abundant college-level job opportunities, and connect
students with available resources to enable them to pursue internships.

• Students should actively seek out and secure at least one paid internship to complement their
academic learning and increase their odds of securing a college-level job after graduating.

Talent Disrupted — February 2024 42

Recommendation 2.
Ensure that everyone has access to clear employment outcomes by college and degree program,
with earnings and occupation data included.

Over the past decade, the federal government (via the College Scorecard) and many states have greatly

2 expanded the amount of information available to individuals about earnings outcomes for most colleges
and degree programs. However, relatively little data is published by institution or degree program about
the proportion of graduates who secure a college-level job. This concerning lack of transparency could
be addressed by adding occupation to the unemployment insurance wage records already filed by
employers every quarter. This change would also enable myriad other benefits for employers and job
seekers alike.25

• Policymakers should develop the ability to measure and report the occupational employment
outcomes of college degree programs to inform decision-making by educators, students, families,
and other stakeholders. This includes enhancing unemployment insurance wage records to include
job titles26 and adding college-level employment for four-year college graduates as a specific
indicator in public-facing data dashboards. States with comprehensive reporting of occupational
information through enhanced wage records could add this indicator to their interactive sites for
education-to-employment reporting, and the Department of Education should consider adding
occupational outcomes information on its College Scorecard (Figure R1).27

Recommendation 3.
Provide quality education-to-employment coaching to every college student.

Today, few students receive personalized education-to-employment coaching and guidance. For

3 example, the ratio of students to career services staff at colleges and universities is 1:2,263.28 What’s
more, there is some emerging evidence that learners who receive high-quality coaching and guidance
are more likely to experience a positive economic outcome following the completion of their program.29

• Policymakers should provide targeted funding to enable public colleges and universities to deliver
quality education-to-career coaching to all students, giving institutions flexibility for how they
deliver it. Colleges and universities often lack the resources to hire coaches, advisors, and mentors
to help students reflect on their talents and interests, choose a career goal, map pathways through
education, and navigate challenges faced along the way.

• Colleges and universities should ensure students have timely, clear, and personalized guidance
about education-to-career pathways. Students deserve to understand what steps they can take to
reduce underemployment risk, including choice of major (and minor(s)), participation in work-based
learning (e.g., internships), campus leadership experiences, and college GPA. Educators should
provide quality, personalized education-to-career coaching for all students, beginning early in each
student’s educational journey.

Talent Disrupted — February 2024 43

Recommendation 4.
Ensure that every student has access to degree programs that lead to well-compensated,
college-level employment.

Many bachelor’s degree programs with the best employment outcomes (i.e., relatively high wages and

4 college-level employment), such as computer science, data science, engineering, or nursing, also cost
substantially more for institutions to deliver than programs with less attractive employment outcomes.
Reasons for their higher program delivery costs include higher market salaries for faculty, as well as
higher costs for laboratory-intensive courses. There is a strong correlation between programs with
high delivery costs and those with strong restrictions to access, suggesting that a major reason for
these restrictions is that state funding formulas, which largely do not reflect program delivery costs,
effectively disincentivize institutions from expanding enrollment in high-cost programs – even when
both employer and student demand is high. Importantly, the solution is not to reduce funding for liberal
arts programs, as those lower-cost programs often subsidize higher-cost programs.

• Policymakers should eliminate disincentives for public colleges and universities to meet
student demand for degree programs that typically lead to well-compensated, college-level
employment. By focusing targeted new investments in programs that prepare students for well-
compensated, college-level jobs, policymakers can also make progress toward their workforce and
economic development goals, strengthening their regional and state economies by closing supply-
demand gaps for talent. In order to avoid disrupting existing degree programs, these targeted
investments, which could be structured in a performance-based manner (such as Virginia’s Tech
Talent Investment Program) and should be made on top of base funding for public institutions.

Talent Disrupted — February 2024 44

Figure R1.
Adding Occupational Outcomes to the College Scorecard

Talent Disrupted — February 2024 45

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draft%20recommendations.docx

Talent Disrupted — February 2024 47

Appendix A. Data Sources and Methods

Data Sources

The data used in this analysis came primarily position, start and end dates, company, industry,
from Lightcast’s career history and job postings job title, and location. The dataset also includes
datasets. These include information on the information on the education experiences of
educational attainment, employment, and career workers, including which educational institution
trajectories of more than 60 million workers, they attended, education levels, and majors. The
along with hundreds of millions of online job Lightcast profiles data were used to identify the
postings. This information was then combined occupations of workers in the decade following
with information from multiple federal education their graduation.
and labor datasets to capture extensive
We captured each profile’s educational attainment
information about, for example, college-educated
and graduation years, as well as a variety of other
workers’ alma maters, degree field, earnings, and
measures, such as their institution of graduation,
geographic location.
their college major, and their predicted gender,
Job Postings Data race, or ethnicity. We then took snapshots of
Lightcast postings data captures labor market each profile’s occupation in the years following
demand across occupations, industries, their graduation. We matched these multiple
and educational attainment levels. This occupations for each profile with their respective
comprehensive database includes hundreds occupation-level underemployment measure (the
of millions of deduplicated online job postings exact methodology of its construction is described
that are updated daily and sourced from a wide below) to determine whether a profile was
array of online jobs boards, newspapers, and underemployed at various time frames after their
employer websites. This rich dataset includes a graduation. We examined profiles with graduation
diverse array of information, including company dates between 2012 and 2021, determined who
name, location, requisite experience, internship was employed in 2022, limited the analysis to one
opportunities, as well as desired education occupation per profile per year, and only examined
levels, certifications, desired skills, salary where those occupations with a tenure of at least six
advertised, and various job description data. Job months.
postings data were used to identify, in conjunction
The resulting dataset included about 18.6
with data from the Bureau of Labor Statistics, the
million unique observations, 10.8 million of
share of employers that required a bachelor’s
which had a terminal bachelor’s degree, 6.3
degree for each occupation.
million had a master’s degree, and 1.6 million
Profiles Data had a doctorate or equivalent. In 2023, college
The Lightcast Career Histories Database, or graduates made up about 29 percent of the
Lightcast profiles data, captures the career entire profiles dataset.
histories of workers and tracks, over time, the
ACS data were then used to ensure the Lightcast
different occupations they are employed in. This
profiles data better reflected the employed
dataset currently includes information on more
population in the U.S. Not all employed individuals
than 60 million U.S. workers. It includes a wide
create a Linkedin profile, and those who do are
array of listed career experiences, including
not an accurate representation of all employed

Talent Disrupted — February 2024 48

 individuals. For instance, we found that the Price Index, and the Occupational Employment
share of those employed as General and Statistics survey, among others. BLS data on
Operations Managers with a terminal bachelor’s educational attainment and employers’ entry-
degree are represented about four times more level educational requirements by occupation
frequently in the profiles data as they are in were used to identify whether occupations were
the weighted census data, whereas Retail college-level, or whether bachelor’s graduates
Salespersons with a terminal bachelor’s degree were underemployed. Using this approach and
were underrepresented by about 50 percent. a separate approach (described in more detail
In general, and on average, non-college -level below), we found that our classifications were in
occupations appear to be more frequently agreement for every occupation. We additionally
underrepresented in the profiles data. used BLS entry-level educational requirement
data to determine which occupations were
To improve occupational representation, we
severely or moderately underemployed, as
divided the share of employed in each occupation
described below.
out of the total employed between 2018 and 2021
using the Lightcast profiles data, by the share American Community Survey
of employed in the ACS data over this same time The American Community Survey (ACS) is an
frame. We then matched this measure to each ongoing survey conducted by the U.S. Census
individual’s occupation at various years after Bureau that provides detailed demographic,
their graduation in the profiles data, and used it social, and economic data about the nation’s
to down weight where an individual’s occupation population. It is the largest ongoing survey
was overrepresented, and upweight where the in the United States, collecting data from
occupation was underrepresented. about 3.5 million households each year. The
ACS collects data on a wide range of topics,
To create more balanced estimates of
including demographics such as age, sex, and
underemployment for graduates by degree
race/ethnicity, as well as social and economic
program, we expanded the weights to reflect both
characteristics such as educational attainment,
the distribution of workers across occupations
employment, income, and occupation.
for each category of educational attainment
ACS data were used to adjust occupational
and graduates’ bachelor’s degree program of
representation of the profiles data (as described
study for the same time period. We divided the
above), to determine earnings, to examine the
occupational share of profiles data for each
full-time employment status of individuals by
degree program and educational attainment by
educational attainment and underemployment
their ACS-equivalent shares and then applied the
status, to analyze advanced degree attainment
weights in analyses examining underemployment
by bachelor’s degree program, to determine
outcomes by degree program.
underemployment by state, and to determine
Bureau of Labor Statistics the number of severely underemployed by
The Bureau of Labor Statistics (BLS) dataset is a occupation.
comprehensive collection of economic and labor-
U.S. Department of Education IPEDS
related data in the United States that includes key
The U.S. Department of Education’s Integrated
indicators such as employment, unemployment,
Postsecondary Education Data System (IPEDS)
inflation, wages, and productivity. The BLS
dataset is a rich and comprehensive resource
gathers and disseminates this information
that gathers and organizes a wide array of data
through various surveys, including the monthly
pertaining to higher education institutions
Employment Situation report, the Consumer

Talent Disrupted — February 2024 49

 across the United States. IPEDS includes People Data Labs (PDL) and L2 Data
data on enrollment, graduation rates, faculty Data from PDL were used to determine individuals’
demographics, financial aid, institutional gender within the Lightcast profiles data. These
finances, and more. IPEDS data was employed data were also used to predict the probability of
to determine the type of institution workers individuals’ race or ethnicity from a combination
graduated from, to determine whether such of PDL, L2 and Lightcast data. The probabilities
an institution was a Historically Black College were constructed using census data, racial
or University (HBCU) or a Hispanic-Serving and ethnic distribution by education for select
Institution (HSI), and to assess institutional geographies from the American Community
selectivity and the share of students who Survey, and the racial or ethnic distribution of
received Pell grants. college graduates by institution from IPEDS.

How Underemployment Is Calculated

Underemployment is a concept that refers lead to a phenomenon known as incumbent worker

to individuals who are employed in jobs that bias, where workers who have been employed for
do not fully utilize their skills, education, or longer time periods, or who gain regular on-the-job
availability.30 This study focuses on the scenario training can skew the survey results.
in which workers are employed in positions
In this study, workers with a bachelor’s degree are
that do not require the level of education,
classified as underemployed based on whether
training, or expertise they possess. A common
the majority of workers in an occupation have or
way that underemployment is characterized
are required to have a bachelor’s degree. To do
involves classifying jobs as college-level based
this, for any given occupation we combined: (1)
on Occupational Information Network (O*NET)
BLS data showing the education levels that other
surveys of current workers, or by utilizing the BLS
workers in the same occupation held, and (2) BLS
education assignments by detailed occupation.31
researchers’ determination of the typical entry-
Another common approach involves classifying
level education required for that occupation.
jobs as college-level based on whether a majority
To these we added a third component, job
of workers in the jobs hold at least a bachelor’s
postings data showing what kind of education
degree.
requirements employers were seeking for that
Determining which occupations require college- occupation. We then created an averaged
level education is challenging for several reasons. measure using these three components. In the
Among jobs with high demand from workers, end, our approach yielded the same occupational
employers may ask for more advanced degrees, classification as the method used for the Bureau
not because they are necessarily required for of Labor Statistics for their typical education
the tasks to be done, but instead as ways to flag assignments by detailed occupation.32
higher quality candidates. Estimates that rely
To determine if a worker was employed in college-
largely on O*NET survey data risk missing evolving
level work, we then compared workers’ career
skills and credential requirements for many jobs,
trajectories using 2012 through 2022 Lightcast
particularly those in technical fields, which can
profiles data (adjusted to reflect the distribution
evolve more quickly than O*NET updates. This can

Talent Disrupted — February 2024 50

 of workers across the U.S.) to our occupation- a worker would be considered underemployed
level underemployment measure. If a bachelor’s if they had earned a bachelor’s degree and who
degree graduate was employed in an occupation after graduating was working in a sales job where
where less than half of workers either had, or less than half of workers either had a bachelor’s
were required to have, a bachelor’s degree, they degree or were required to have a bachelor’s
were classified as underemployed. For example, degree.

How Other Key Measures Are Calculated

Definition of “severely underemployed.” We terminal bachelor’s degrees between ages 26 and

classify graduates as “severely underemployed” 30, to attempt to capture the state of graduates’
if they have a bachelor’s degree or higher but career about five years after their graduation.
are employed in an occupation where the typical
Identification of degree fields for bachelor’s and
educational requirement for an entry-level position
advanced degrees. We classified degree fields of
is either “a high school degree or equivalent” or
graduates by using Lightcast profiles education
requires “no formal educational credential.” We
data, and then grouped these majors together.
classify graduates employed in non-college-level
For example, graduates in English and foreign
jobs where the typical requirement is an associate
language, history, philosophy, theology, and liberal
degree or a “postsecondary nondegree award” as
arts and science programs were combined in a
being “moderately underemployed.”
“humanities and cultural studies” category. We also
We used a combination of ACS and BLS separated business majors by their math intensity.
occupation data to estimate the number of For example, accounting and finance programs
severely underemployed for 3-digit Standard were combined, while majors like management,
Occupational Classification (SOC) equivalent marketing, and HR were grouped together into
occupational groups. As a first step, we matched a non-quantitative business major category.
ACS occupational categories to associated 6-digit Finally, graduates in diverse fields such as natural
SOC BLS occupations and then used 2021 BLS resources, legal studies, and library studies were
employment data to calculate the weighted grouped together under an “other fields” header.
share of those employed in occupations where
Classification of more selective, selective, and
the educational requirement for entry included
inclusive institutions. To identify the selectivity
either a high school diploma or less for each ACS
of educational institutions, we used 2021 IPEDS
occupation category. These averages were then
administrative data on four-year colleges and
multiplied by the weighted observation counts
universities. Selectivity tiers are based on the
for 2022 ACS respondents who had bachelor’s
American Council of Education’s Carnegie
degrees and were employed in non-college-level
Classifications.33
occupations.
Concentration of low-income students and how
Description of state-based underemployment
we classified institutions. We used 2021 IPEDS
estimates. We identified graduates’ state of
data to determine the share of students who
employment using ACS data for workers with
received Pell grants for each four-year college

Talent Disrupted — February 2024 51

 or university, then grouped these institutions How graduate earnings were calculated. We
across four relatively evenly distributed and easily used 2022 data from the ACS to determine median
understandable categories for further analysis: earnings for workers who were employed full-
less than 25 percent of students who received time, year-round (i.e., working at least 35 hours
Pell grants; between 25 and 40 percent; between per week and 50 weeks per year) and not enrolled
40 and 60 percent; and 60 percent or higher Pell in school.
grant recipient share.
Regression analysis estimates. To determine the
How we analyzed internships. We used Lightcast’s relationship between variables, including whether
profiles data to determine whether bachelor’s degree workers pursued an internship in college, and
graduates were employed in a co-op or an internship the probability of workers being underemployed
by flagging graduates who had intern or co-op job a year after graduation, we employed logistic
titles during the duration of their college tenure, and regression on a sample of about 3.5 million
excluding non-internship jobs during that tenure, Lightcast profiles of bachelor’s degree graduates
such as camp counselors, retail salespersons, or who completed degrees in 2017 or later. We
employment at a college. To limit the potential controlled for several variables, including degree
bias of graduates who removed internships from program, predicted gender, race, or ethnicity,
their profile as their career progressed beyond selectivity of a graduate’s educational institution
their graduation date, we restricted analysis on attended, and the share of Pell grant recipients at
internships and underemployment to workers in a graduate’s institution.
2017 or later graduation years.

Limitations

A great deal of our analysis is based on real- race, and ethnicity. We are able to impute some
time labor market information (LMI) such as job but not all of these characteristics with a high
postings and professional profiles. While the degree of confidence using modern statistical
quality of these data continues to improve, they techniques. Importantly, we do not factor age or
are an imperfect data source. Unlike traditional work experience into our analysis, both of which
sources of labor market information, such as may influence employment outcomes.
the Bureau of Labor Statistics, real-time LMI is
Another important limitation is that it is highly likely
not necessarily representative of the entire labor
that many factors that substantially influence
market, though its coverage improves each year
our results are not included in our study, such
and we leverage weighting techniques to correct
as individual differences in family background,
for gaps in representativeness. Along the same
ambition, motivation, skills, and social capital
lines, real-time LMI does not include important
that students possess prior to matriculating at
demographic information, such as age, gender,
college.34

Talent Disrupted — February 2024 52

Appendix B. Predictors of Underemployment Regression Analysis
How to Interpret This Chart: The bars represent is male graduates, and the -7.5 percent in the
how the probability of being underemployed one top row can be interpreted as the following
year after graduation differs for the explanatory statement: “Controlling for other factors in the
variables built into the logistic regression model model, the odds of being underemployed one year
when compared to baseline or reference values. after graduation are 7.5 percent lower for female
In the case of gender, for example, the baseline graduates compared to male graduates.”

CATEGORY VARIABLE COMPARATIVE PERCENTAGE ODDS OF UNDEREMPLOYMENT

Gender
Compared to male Female -7.5%

Race/ethnicity Asian -21.1%

Compared to non-Hispanic white
Black 21.6%

Hispanic 8.3%

Internship Compared to no internship Internship during college -48.5%

HBCU Compared to non-HBCU HBCU -15.3%

HSI Compared to non-HSI HSI -3.5%

Selectivity More selective -31.5%

Compared to inclusive
Selective -4.3%

Pell recipient category High Pell: 40-60% 5.2%

Compared to moderate (25-40%)
Low Pell: less than 25% -1.3%

Very high Pell: 60+% 13.8%

School type Private for-profit 11.0%

Compared to public
Private not-for-profit -23.3%

Selectivity and Pell Grant More selective - high Pell 23.4%

percentage
Compared to inclusive and moderate More selective - low Pell -7.5%
Pell recipient percentage
More selective - very high Pell 13.4%

Selective - high Pell 0.6%

Selective - low Pell -13.1%

Selective - very high Pell -9.2%

School type and Private for-profit - high Pell 2.9%

Pell Grant percentage
Compared to public and moderate Private for-profit - low Pell -24.2%
Pell recipient percentage
Private for-profit - very high Pell 21.4%

Private not-for-profit - high Pell 14.7%

Private not-for-profit - low Pell -1.4%

Private not-for-profit - very high Pell 20.2%

School type and selectivity Private for-profit - more selective -2.8%

Compared to public
and inclusive Private for-profit - selective 21.6%

Private not-for-profit - more selective 5.1%

Private not-for-profit - selective 8.3%

Source: Burning Glass Institute analysis of Lightcast Career Histories Database, 2017-2022.
Calculated for workers with a terminal bachelor's degree one year after graduation.

Talent Disrupted — February 2024 53

Appendix C. Graduate School Enrollment for Initially Underemployed Workers
with Bachelor’s Degrees by Bachelor’s Degree Field and Year

Y E A R O F G R A D U A T I O N

Bachelor's Degree Field 2010 2011 2012 2013 2014 2015 2016 2017

Architecture and Planning 25% 27% 25% 30% 24% 24% 26% 27%

Biological and Biomedical Sciences 37% 35% 33% 32% 31% 30% 28% 28%

Business: Math-Intensive (e.g.,

24% 23% 23% 21% 20% 19% 18% 18%
Accounting, Finance)
Business: Other (e.g., Management,
16% 15% 14% 14% 13% 13% 12% 12%
Marketing, HR)
Communication, Journalism, And Related
14% 14% 12% 12% 12% 12% 12% 12%
Programs

Computer Science 16% 18% 15% 15% 17% 14% 12% 13%

Education 25% 27% 24% 23% 23% 23% 21% 19%

Engineering 27% 26% 25% 25% 23% 22% 20% 18%

Health Professions and Related Programs

26% 27% 26% 27% 27% 28% 26% 25%
(e.g. Nursing)

Public Safety and Security 24% 23% 24% 21% 20% 21% 21% 17%

Humanities and Cultural Studies 29% 27% 26% 24% 24% 24% 23% 22%

Mathematics And Statistics 26% 27% 26% 23% 24% 22% 20% 23%

Multi/Interdisciplinary Studies 29% 28% 24% 24% 24% 24% 25% 22%

Other Fields 18% 18% 19% 18% 19% 18% 16% 16%

Recreation and Wellness 26% 25% 26% 24% 23% 25% 24% 24%

Physical Sciences 36% 34% 30% 28% 29% 25% 23% 22%

Psychology 36% 36% 34% 34% 33% 32% 32% 32%

Public Administration And Social Service

41% 39% 37% 39% 38% 35% 36% 37%
Professions

Social Sciences 29% 29% 27% 26% 25% 25% 24% 22%

Visual And Performing Arts 13% 11% 11% 10% 10% 10% 8% 8%

Source: Burning Glass Institute analysis of Lightcast Career Histories Database, 2010-2022. Calculated for workers with a terminal bachelor’s degree
within five years after graduation.

Talent Disrupted — February 2024 54

Endnotes
1 This report is exclusively focused on the students and graduates of four-year colleges and universities.

2 Selingo and Sigelman, “Yes, a College Degree Is Still Worth It,” 2023.

3 Earnings are calculated for recent workers ages 22–27 who are employed full-time, year-round and not enrolled in school.

4 Notably, many graduates with a degree in biology go on to complete an advanced degree (e.g., master’s and doctoral degrees),
whereas this analysis focuses on individuals with only a bachelor’s degree.

5 Graduates with advanced degrees are analyzed separately.

6 College-level jobs refers to jobs in occupations that typically require a bachelor’s degree.

7 Burning Glass and Strada Institute for the Future of Work, The Permanent Detour, 2018.

8 U.S. Census Bureau, “Educational Attainment in the United States: 2021,” 2022.

9 McNair, “Are liberal arts degrees worthless? ‘Employers don’t care what you major in,’ says career expert,” 2023.

10 U.S. Census Bureau, “CPS Historical Time Series Tables,” 2023.

11 Pew Research Center, “Women now outnumber men in the U.S. college-educated labor force,” 2022.

12 The extent to which graduates escape underemployment and secure college-level jobs is analyzed in more detail in Part 3.

13 See Appendix C.

14 We explore this in more detail in Part 3.

15 Sheffey, “Inside the scandal-ridden for-profit education industry, which churns out quick degrees and loads student-loan
borrowers up with debt,” 2022.

16 See Appendix B.

17 See Appendix B.

18 Carnevale and Strohl, Separate & Unequal, 2013.

19 See Appendix B.

20 See Appendix B.

21 Notably, these results differ from our 2018 report, The Permanent Detour, which found higher rates of underemployment for
women than men. This change most likely resulted from improvements to our methods to weight the profiles data so that it was
more representative of the occupational distribution of employment. See Appendix A for a detailed discussion of our data sources
and methods.

22 Kline et al., “Systemic Discrimination Among Large U.S. Employers,” 2022

23 U.S. Census Bureau, “Educational Attainment in the United States: 2021,” 2022.

24 Torpey-Saboe et al., The Power of Work-Based Learning, 2022.

25 Workforce Information Advisory Council, Enhanced Unemployment Insurance Wage Records Subcommittee Expedited
Recommendations, 2020.

26 Administrative Wage Record Enhancement Study Group, Enhancing Unemployment Insurance Wage Records, 2015.

27 This is a long-term aspirational goal that would require the inclusion of occupational information in administrative data
systems such as state unemployment insurance wage records.

28 National Association of Colleges and Employers, Career Services Benchmarks Survey Report, 2022.

29 MDRC, From Degrees to Dollars: Six-Year Findings from the ASAP Ohio Demonstration, 2023.

30 Underemployment can, for example, be alternatively defined as the percent of people in the labor force working part time that would
prefer to be working full time, or by looking at the percent of people working full time on wages that do not meet basic living expenses.

31 Bureau of Labor Statistics, “Measures of education and training,” 2023

32 Bureau of Labor Statistics, “Education assignments by detailed occupation,” 2024.

33 American Council of Education, Undergraduate Profile Classification, 2024.

34 Dale and Krueger, “Estimating the Return to College Selectivity over the Career Using Administrative Earnings Data,” 2011.

Talent Disrupted — February 2024 55

TALENT
DISRUPTED
College Graduates, Underemployment,
and the Way Forward

FEB RU A RY 2024