Updated: May 7, 2025
For decades, a college degree was seen as a guaranteed pathway to career success. However, new research shows that young professionals—especially Generation Z—are now questioning whether their education was worth the financial and time investment.
According to a recent survey by Indeed Hiring Lab, 51% of Gen Z respondents say their college degree wasn’t worth the money. This growing skepticism comes at a time when employer demand for formal qualifications is also on the decline.
The Generational Divide on College Value
The survey polled 772 professionals in the United States with at least an associate degree. The results revealed a clear generational gap:
- Only 20% of Baby Boomers feel their degree was a waste.
- This figure jumps to 30% for Generation X, 41% for Millennials, and peaks at 51% for Gen Z.
Why the sharp increase in disillusionment? The reasons seem rooted in both economic trends and job market realities.
The Declining College Wage Premium
For years, earning a degree meant higher wages compared to high school graduates. Between 1980 and 2010, this income gap—what economists call the “college wage premium”—grew significantly.
However, research from the Federal Reserve Bank of San Francisco now shows that this advantage has plateaued in recent years. Meanwhile, tuition costs in the U.S. have surged by 32% to 45% over the last two decades, even after adjusting for inflation, according to U.S. News.
Rising Student Debt and Career Limitations
The financial strain doesn’t end at graduation. Over 52% of survey participants said they left college with student debt. Millennials seem particularly impacted, with 58% still repaying education loans.
Even more troubling, 38% of respondents believe their student debt has hindered their professional growth more than their degree has helped their career. Unsurprisingly, those carrying debt are more likely (41%) to regret their degree compared to debt-free graduates (31%).
More Degrees, Fewer Opportunities
Another factor fueling this discontent is degree saturation. As sociologist Jonathan Horowitz explains, more people earning degrees means fiercer competition for skilled jobs, leaving many overqualified candidates in lower-skilled positions.
In short, too many degrees and not enough specialized job opportunities create a mismatch between expectations and reality.
The Skills-Reality Mismatch
Despite the financial burden, most graduates acknowledge gaining valuable skills during their education. Yet, many now feel those skills weren’t essential for their current job.
In the survey:
- 68% of Gen Z respondents said they could perform their job without needing their degree.
- This compares with 64% of Millennials, 55% of Gen X, and 49% of Baby Boomers.
Interestingly, employer expectations seem to be shifting as well. Indeed Hiring Lab reports that by early 2024, over 52% of job postings on Indeed no longer listed formal degree requirements, up from 49% in 2019.
Yet, there’s still a contradiction: 67% of degree holders said they would be bothered if a colleague was hired for a similar role without a degree, suggesting emotional attachment to the value of their qualifications despite market realities.
The Broader Job Market Challenge
The Federal Reserve Bank of New York reports that overall job market conditions for college graduates have weakened. This erosion of the wage premium further calls into question the traditional belief that higher education is a surefire economic investment.
Value Beyond Technical Skills: A New Educational Focus
While many now doubt the financial ROI of college, some graduates still find value in the non-technical aspects of their education. Nico Maggioli, a communications design graduate from Syracuse University, believes his degree was worthwhile—not for technical training, but for the mindset it helped develop.
Maggioli said, “My teachers mainly focused on how we think and view the world as designers rather than focusing on technical details, which is super useful right now—especially with AI tools taking over technical tasks.”
This reflects a growing trend: educational value is shifting toward mindset development, creativity, critical thinking, and problem-solving skills, rather than specific technical expertise that AI can now handle.
Preparing for an AI-Driven Job Market
As artificial intelligence reshapes industries, education systems face mounting pressure to evolve. According to Francisco Marmolejo, Higher Education President at the Qatar Foundation, focusing on short-term tech trends like specific AI tools would be a mistake.
“Specific tools can change and become obsolete quickly,” Marmolejo explained. Instead, he urges institutions to emphasize “essential human skills”—analytical thinking, teamwork, and emotional intelligence—that will remain in demand regardless of technological shifts.
This aligns with Maggioli’s Syracuse experience, where developing a design-oriented mindset took precedence over mastering now-automatable technical tasks.
Final Thoughts: Is College Still Worth It?
The conversation about the true value of higher education is far from over. While some still find intangible benefits in their college experience, growing debt, stagnant wages, and shifting employer expectations are causing younger generations—especially Gen Z—to rethink the traditional college-to-career pipeline.
For South African readers, these U.S.-based findings reflect a global discussion on the future of education. With rising tuition costs and evolving job market demands, the same questions apply locally: Is your degree giving you the return you expected?
For more insights on education, career planning, and workplace trends, visit our Career Advice section on latest24.co.za.
