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Jun 17, 2009 -- College education remains assurance against unemployment

We're hearing so much talk of how this is an equal opportunity recession -- how no matter what you make or where you work, you might lose your job.

That kind of talk is being coupled with chatter about how a college degree may no longer be of value, that it's better to learn a trade or a skill.

Is it true? Have we reached a watershed moment where college no longer pays off? No way, according to an article in The Orlando Sentinel.

Here's the rundown: Unemployment among people with bachelor's degrees is at 4.4%, while the national rate is hovering around 9%. Meanwhile, for those who dropped out of high school, the rate of unemployment is sitting around 15%!

Degrees are not bulletproof -- you still could be pink-slipped -- but they give you some level of assurance against joblessness.

Mind you, this is not to belittle those who skip the traditional school route and learn a trade. College, after all, is not for everyone.

It's what Clark calls "the nothingness" that's problematic -- not finishing high school, not going to college or not having a specific skill or trade.

With the dreaded liberal arts degree, you're not qualified on paper to do anything. Yet plenty of people still forge a career path with liberal arts degrees.

Christa, for example, was an English major who worked as a receptionist once she got out of school. But she was able to seize an opportunity to work at AOL during the company's heyday.

From there, she went to work for Clark launching the first incarnation of his website. And then eventually she became executive producer for the show. It was a haphazard path that wouldn't have worked without a degree.

So don't believe the hype; college still matters.

Unfortunately, Clark won't be able to answer any questions submitted via commenting. If you have a question, please try posting it to our message boards.

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What others are saying

  • Know your industry, do what you love
    Degrees matter, sometimes more than experience. I have a Master's in Engineering with 4 years of experience. My boyfriend has 14 years of experience in Engineering, drafting and million dollar client management, but an associates in Drafting. His is a story of "right time, right place, worked up in the company". We both were laid off. I recovered quickly and make more now than I did. He hasn't been able to recover and makes half as much working for himself, which is more than anyone has been willing to pay him. The deciding factor has been the degree over the experience. You have to know the industry you want to be in, look at the successful people, and do what they do.
  • College Education
    I have a AA Degree in Finance that I worked hard for. I've been on my own since I was 17. I worked pizza jobs, and hamburger jobs in the 1990's to get my AA degree, since then I've been struggling to get my Bachelor's. It is difficult when you gotta work to support yourself, then later, support your child and work F/T. All the while paying rent, electric bill, car payment, etc. I want my BA.
  • College-degreed child has no work
    My daughter and I are extremely frustrated because she can't find work! She has a BA from UGA in English. Any help or suggestions out there?
  • Can relate to negetive postings
    I too feel taken. I attended a college from 2002 to 2004. I graduated with an A.A.S., However,I still haven't been hired anywhere! Turns out only genuine accredited colleges are seen as legitimate by employers. Not these "business" or "start your career now" type of colleges you see on late night television. I paid $20,000 for nothing. And what is really funny, is these colleges only hired teacher who have attended the same accredited colleges they pooh pooh at your "come an see interview"!
  • College Degree
    4 more years of book knowledge that cost you 20-50,000 per year. When I graduated I didn't know anything more than I did when I graduated from high school!!

    College is an American fantasy that is supported by educators who want you to go---to pay for professor research and
    their pay check.
  • Not really
    When the layoffs come around, the degree will not save you. you could be laid off even if you did your job correctly. I have a Masters degree but I have always made more money per year as a blue collar laborer that I have as a paper pusher in a cubical. College might be worth something, but it is not the only game in town.
  • College Degrees
    There is an on-line e-book out there called, "Skip College! Go into business for yourself instead."

    Everyone needs training of some kind. People aren't going to "get by" with "get rick quick schemes", when it comes to making money over their life-time.

    1. Really think about what you LOVE to do, and then go to college, take classes and try to break into the field immediately even if it isn't in the position you are going to college for.

    Here is an example:

    You want to be a writer. But you are a long way from getting that degree in English or getting published. But, you could apply for jobs in the publishing industry, or a Hollywood studio, or other medias. Maybe not as a writer, but a janitor, receptionist, or other office or building support. This does two things: Put you in contact with the vary people that made the decisions about hiring writers. You get to know the staff, the jargon, the trend in the industry you are seeking.



    2. Check out the education
  • Public School Fraud
    Because of the massive fraud in our Public Schools, a High School diploma is worthless. A Bachelors degree is the new High School diploma.
  • I think this study is really unsound. It completely ignores the reality that many people who do not possess degrees may in fact have some other kind of skill or trade. Those folks need to be separated from high school dropouts and unskilled labor. I would be interested in seeing how a more refined version of this study pans out. Also I would love if the cost of obtaining a degree vs. a skill were factored in which shows a better return on investment. I'm going with the later
  • college
    I know several people that have degrees and are clerks like me and they owe 30,000 in loans. I never went to college and I make more than them without the loans.
  • College degree
    What about the woman I know who has a college degree and has worked in a donut shop for 10 years. And a family member of mine had a college degree and left her job after marriage and worked part time in a womans clothing shop. And then there is the person I know with a law degree who retired at age 30 to raise children and was going to return when they went to school but decided to volunteer for free day care for her kids instead. That was 10 years ago.

    All of these had college degrees and did they use them? No.

    My husband has an accounting degree at age 73 and he is overqualified and he WANTS to work. But they overlook him because of his age. They may be thinking he cannot work. Wrong again. Seniors are not counted as being valuable.

    And what about the fact that my husband is reliable. these days it is hard to find someone that is able to be dependable.
  • Fuzzy Logic
    Buzz, if making a sweeping contrarian viewpoint based on only two examples is not the definition of "fuzzy logic", I don't know what is. Would you take seriously a study that only cited two examples???
  • Advanced Degrees
    Having an advanced degree and getting it right after undergrad, I cannot comment on whether it pays for itself or not.

    I can however comment on whether or not it is worth it.

    I am a middle aged white male. I do not have EEO or a quota to rely on. On more than one occasion, I have been, and probably will continue to be, a victim of reverse discrimination. I am extremely qualified but have been passed up for promotion or a job opportunity in the past due to not being of minority descent, gay, female, etc. Actually I have come ot learn that companies that play this game are probably not the ones I want to work for anyway so it is just "Water off a duck's back" to me.

    I am lucky enough to find a company that is "promote the best individual that can lead the organization". Mosto f my bosses do not have college or advanced degrees. However, a big reason I have and keep my job is due to my advanced degree. I also knwo in the past the reason I was interviewed and eventually hired was due ot my experience and advanced degree.

    In my situation, because I cannot whine that the man is keepign me down, I have to prove I am better, smarter, faster, and a hell of a lot more efficent than the competition (other job seekers). An advance degree helps prove this.

    Texan
  • post high school education
    Only a fool would think that either college, trade school, or some other form of specialized job training does not translate into better pay, more stable employment and job opportunites not otherwise available.
    Just because you know someone with a masters or doctorate degree who is unemployed or underemployed means nothing. I know of high school dropouts who are millionaires and run their own very successful businesses. So does that mean we should all be high school dropouts and thus be guaranteed financial success?
    What I can say with certainty is that you are more likely to succeed financially with more education, not less. And while there are no guarantees, the odds are in your favor and all other things being equal your financial life will mean more money and more stable employment over your lifetime.
  • Fuzzy Logic
    I read the article in question. The logic is poor and Clark should be smart enough to know better. The study assumes that because unemployed people statistically have less education that employed, it must be that the more education, the better the employment. But there is no real proof of causation. Certainly, if you have no high school diploma, there will be lots of doors closed to you. But will a PHD assure you that you get a six figure job? Doubt it. I have yet to see a study that convinced me that advanced degrees pay for themselves. All the studies I have seen have been conducted by educator types with an agenda and are not trustworth. But for a heck of a lot of people, I very much suspect will never earn back what they paid for their education. I know 2 with Master's Degrees from big schools. One shakes paint at the home store, and one does nothing and lives in his mother's basement.
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