Less than two decades ago, a master’s degree opened up high-paying avenues as employers were on the lookout for highly educated individuals. That is no longer the case, as a master’s degree does not guarantee a job anymore, let alone a high-paying one. The unemployment rate for people under 35 with a master’s degree has reached a 20-year high.
Over-saturation and employers looking out for specific skill-sets to meet demand are the sole reasons for the decline. Between 2005 and 2021, candidates pursuing a master’s degree surged by 69%. This led to an oversaturated market, with proliferation diminishing the degree’s value. It is no longer seen as a distinguishing credential that differentiates them from the rest.
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Employers’ Preferences Shift From Master’s Degree To Skill-Set
Employers are increasingly prioritizing specific skill sets over focusing on candidates with a master’s degree. The demand for AI and other technologies associated with it has accelerated the pace. Several companies have already moved to skill-based hiring processes rather than viewing a candidate’s higher degree. “It’s hardly a sure bet to securing a good job,” said Gad Levanon, chief economist of Burning Glass.
Also, the unemployment rate for master’s degree holders has rarely been higher in the past 20 years. “For most of the past two decades, these lines moved together—not anymore,” said Levanon. He explained why the payoffs for advanced degrees have uncoupled. “More degrees chasing fewer of the positions those degrees were meant to unlock,” he said.
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However, master’s degree holders in Ph.D., law degree, or medical degree have not seen a dip in employment opportunities. These degrees meet the exact specific demand to enter the law and medical sectors. No other degrees are allowed, as law and the medical field require concrete knowledge of the industry. For the other higher degree holders, the soft cushioning is no longer a reality.