Underemployment among graduates

  Underemployment is prevailing among graduates today, for several socio-economic reasons. Graduating, does not guarantee employment in a chosen field or any other job position, due to the lack of job opportunities- as a result of the global economic crisis- and overeducation in fields that are not profitable or successful therefore have limited job positions.

   The Economic crisis is probably one of the major reasons of underemployment. The most recent financial crisis began in the late 2008 and 2009 by bank runs and stock market crushes ¹ around the world. The countries affected by this economic depression were mostly developed countries in which the percentage of university and college students and graduates is quite high in contrast to underdeveloped countries. It is therefore expected that graduates will struggle with acquiring a suitable job position after their graduation.

     Another very important factor which resulted in the underemployment among graduates is the “mismatch between the aspiration of graduates and employment opportunities available to them” ². This phenomenon is caused due to the fact that students are not properly informed about job opportunities before they make a decision about which field of study to choose, due to the rapid change and transformation of the labor market and lastly because most students make choices about their studies based on their personal preferences without considering their post-academic future.

     Overpopulation has also played an important role in the “employment crisis” since the increased amount of workers and demands for jobs have resulted in the saturation of the labor market. As the population grows in the developed countries more and more overeducated graduates struggle to get a permanent job suited to their skills and knowledge.

     The underemployment rising among graduates is a very serious issue that needs to be resolved as soon as possible. The consequences of this phenomenon are affecting the economy and society as a whole. A solution to this problem could be the thorough briefing of students before they make decisions about their studies so that they are informed about the current status of the economy and how it affects the labor market and also which fields are the most promising and most likely to show development and progress in the future.

¹Wikipedia “Economic Crisis- Wider Economic Crisis”

²Wikipedia “Graduate Unemployment”