- Job opportunities for master’s degree holders are dwindling, with employers increasingly valuing skills over advanced education.
- The Burning Glass Institute reports that unemployment rates for those under 35 with master’s degrees are nearing their highest since 2003.
- Over 40% of businesses are opting not to hire master’s degree graduates this year.
The job landscape for those with master’s degrees appears to be less favorable than it has been in nearly two decades. Several companies have openly stated a growing disinterest in hiring candidates with extensive educational backgrounds.
Currently, the unemployment rate for master’s degree holders under 35 is at levels similar to the worst observed during the 2003 and 2008 economic downturns, according to a study from the Burning Glass Institute.
Unemployment figures for individuals under 35 with doctoral, medical, or law degrees are also similarly high, based on labor statistics analyzed by the institute.
In fact, these master’s degree holders now experience an unemployment rate that places them in the 77th percentile, compared to a more typical 50th percentile for their demographic, as noted by a report from The Wall Street Journal.
One contributing factor to these rising unemployment rates seems to be the proliferation of master’s degree programs—growth was up by 69% since 2005 to meet demand.
Gad Lebanon, the Burning Glass chief economist, stated, “The more degrees you pursue, the fewer options you often have for employment with those degrees.”
This increase in unemployment coincides with the rapid advancement of AI in business, which has led employers to prioritize practical skills over academic qualifications.
Johnny C. Taylor Jr., president of SHRM, highlighted that especially in recent years, employers are asking themselves, “Can it be done?” rather than focusing solely on educational credentials.
The situation looks particularly bleak for master’s degree holders, with a recent study from Drexel University’s LeBow College of Business indicating that more than 40% of employers have no intentions of hiring them this year—a stark increase from 28.6% projected for 2025.
“Recruiters are increasingly finding that a graduate degree isn’t a necessity for competitiveness,” Taylor noted.
Recent graduates are feeling the pressure. Take, for example, Kevin Vado, who recently completed his MBA at the University of Florida. While he networked with the school’s alumni network, he has applied for 200 jobs without finding a suitable position.
“It was a bit tough to get interviews,” Vado shared. “I didn’t receive as many offers as I anticipated.”
Prior to his degree, Vado worked at firms like Wells Fargo and Morgan Stanley, and he holds firm to the belief that his degree was worthwhile.
“As cliché as it may sound, my time in business school enriched me personally as well,” he reflected. “I still believe it’s worth it, but this job market hasn’t provided the opportunities I expected.”
