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Having a bachelor’s degree remains an important advantage in many sectors of the U.S. labor market. College graduates generally out-earn those who have not attended college, and they are more likely to be employed in the first place. At the same time, many Americans say they cannot afford to get a four-year degree – or that they just don’t want to.
Here are key facts about American college graduates.
Nearly four-in-ten Americans ages 25 and older have a bachelor’s degree, a share that has grown over the last decade. As of 2021, 37.9% of adults in this age group held a bachelor’s degree, including 14.3% who also obtained a graduate or professional degree, according to data from the Census Bureau’s Current Population Survey. That share is up 7.5 percentage points from 30.4% in 2011.
An additional 10.5% had an associate degree in 2021. About four-in-ten Americans ages, 25 and older had a high school diploma with no further education (25.3%) or completed some college but didn’t have a degree (14.9%).
In a reversal, women are now more likely than men to graduate from college, according to the Current Population Survey. In 2021, 39% of women ages 25 and older had a bachelor’s degree or more education, compared with 37% of men in the same age range. The gap in college completion is even wider among adults ages 25 to 34: 46% of women in this age group have at least a bachelor’s degree, compared with 36% of men.
In an October 2021 Pew Research Center survey of Americans without a degree, 34% of men said a major reason why they have not received a four-year college degree is that they just didn’t want to. Only one-in-four women said the same. Men were also more likely to say a major reason they didn’t have a four-year degree is that they didn’t need more education for the job or career they wanted (26% of men said this vs. 20% of women).
Women (44%) were more likely than men (39%) to say not being able to afford college was a major reason they don’t have a bachelor’s degree. Men and women were about equally likely to say a major impediment was needing to work to help support their families.
There are racial and ethnic differences in college graduation patterns, as well as in the reasons for not completing a degree. Among adults ages 25 and older, 61% of Asian Americans have a bachelor’s degree or more education, along with 42% of White adults, 28% of Black adults, and 21% of Hispanic adults, according to 2021 Current Population Survey data. The share of bachelor’s degree holders in each group has increased since 2010. That year, 52% of Asian Americans had a four-year degree or more, compared with a third of White adults, 20% of Black adults, and 14% of Hispanic adults.
The October 2021 Center survey found that among adults without a bachelor’s degree, Hispanic adults (52%) were more likely than those who are White (39%) or Black (41%) to say a major reason they didn’t graduate from a four-year college is that they couldn’t afford it. Hispanic and Black adults were more likely than their White counterparts to say needs to work to support their family was a major reason.
While a third of White adults said not wanting to go to school was a major reason they didn’t complete a four-year degree, smaller shares of Black (22%) and Hispanic (23%) adults said the same. White adults were also more likely to cite not needing more education for the job or career they wanted. (There weren’t enough Asian adults without a bachelor’s degree in the sample to analyze separately.)
Only 62% of students who start a degree or certificate program finish their program within six years, according to the most recent data from the National Student Clearinghouse, a nonprofit verification and research organization that tracked first-time college students who enrolled in fall 2015 with the intent of pursuing a degree or certificate. The degree completion rate for this group was highest among students who started at four-year, private, nonprofit schools (78.3%), and lowest among those who started at two-year public institutions (42.2%).
Business is the most commonly held bachelor’s degree, followed by health professions. According to the National Center for Education Statistics, about a fifth (19%) of the roughly 2 million bachelor’s degrees conferred in 2019-20 were in business. Health professions and related programs were the second-most-popular fields, making up 12.6% of degrees conferred that year. The business has been the single most common major since 1980-81; before that, education led the way.
The least common bachelor’s degrees in 2019-20 were in military technologies and applied sciences (1,156 degrees conferred in 2019-20), library science (118), and precision production (39).
There is a growing earnings gap between young college graduates and their counterparts without degrees. In 2021, full-time workers ages 22 to 27 who held a bachelor’s degree, but no further education, made a median annual wage of $52,000, compared with $30,000 for full-time workers of the same age with a high school diploma and no degree, according to data from the Bureau of Labor Statistics. This gap has widened over time. Young bachelor’s degree holders earned a median annual wage of $48,481 in 1990, compared with $35,257 for full-time workers ages 22 to 27 with a high school diploma.
The unemployment rate is lower for college graduates than for workers without a bachelor’s degree, and that gap widened as a result of the coronavirus pandemic. In February 2020, just before the COVID-19 outbreak began in the U.S., only 1.9% of college graduates ages 25 and older were unemployed, compared with 3.1% of workers who completed some college but not a four-year degree, and 3.7% of workers with only a high school diploma. By June 2020, after the pandemic hit, 6.8% of college grads, 10.8% of workers with some college, and 12.2% of high school grads were unemployed.
By March 2022, the unemployment rate had nearly returned to pre-pandemic levels for college graduates (2%) while dropping to 3% among those with some college education but no four-year degree, and 4% among those with only a high school diploma.
Recent college graduates are more likely than graduates overall to be underemployed – that is, working in jobs that typically do not require a college degree, according to an analysis of Census Bureau and BLS data by the Federal Reserve Bank of New York. As of December 2021, 41% of college graduates ages 22 to 27 were underemployed, compared with 34% among all college graduates. The underemployment rates for recent college grads rose in 2020 as the COVID-19 outbreak strained the job market, but have since returned to pre-pandemic levels.
As of the end of 2021, only 34% of underemployed graduates ages 22 to 27 worked what the Fed defines as “good non-college jobs” – those paying at least $45,000 a year – down from around half in the 1990s. The share of underemployed graduates ages 22 to 27 in low-wage jobs – those earning less than $25,000 annually – rose from about 9% in 1990 to 11% last year.
When it comes to income and wealth accumulation, first-generation college graduates lag substantially behind those with college-educated parents, according to a May 2021 Pew Research Center analysis. Households headed by a first-generation college graduate – that is, someone who has completed at least a bachelor’s degree but does not have a parent with a college degree – had a median annual income of $99,600 in 2019, compared with $135,800 for households headed by those with at least one parent who graduated from college. The median wealth of households headed by first-generation college graduates ($152,000) also trailed that of households headed by someone with a parent who graduated from college ($244,500). The higher household income of the latter facilitates saving and wealth accumulation.
The gap also reflects differences in how individuals finance their education. Second-generation college graduates tend to come from more affluent families, while first-generation college graduates are more likely to incur education debt than those with a college-educated parent.
Most Americans with college degrees see value in their experience. In the Center’s October 2021 survey, majorities of graduates said their college education was extremely or very useful when it came to helping them grow personally and intellectually (79%), opening doors to job opportunities (70%), and developing specific skills and knowledge that could be used in the workplace (65%).
Younger college graduates were less likely than older ones to see value in their college education. For example, only a third of college graduates younger than 50 said their college experience was extremely useful in helping them develop skills and knowledge that could be used in the workplace. Among college graduates ages 50 and older, 45% said this.