Overview

In February 2024, American Student Assistance (ASA) and Jobs for the Future (JFF) published the report, Degrees of Risk. It examines the perceptions of Generation Z (Gen Z) and employers regarding education-to-career pathways and highlights growing interest in alternatives to the traditional college route.​

The research was conducted by Morning Consult, a market research firm, between January and March 2022. Responses were gathered from over 1,500 Gen Z individuals and 600 employers. ​

Key Findings:

• Skills Over Degrees
  • 81% of employers believe that organizations should look at skills rather than degrees when hiring. ​
  • Gen Z wants to build skills that will lead to a good job.
• Support for Nondegree Pathways
  • 58% of Gen Z students agree that companies should hire more high school graduates who have pursued nondegree pathways.
  • There is a desire from employers (68%) to hire from non-degree pathways. Though most employers (72%) don’t see a degree as a reliable signal for assessing the skills of a candidate, the majority (52%) still hire from degree programs because they believe it is a less risky choice when hiring.
• Risk Perception
  • Despite the growing acceptance of nondegree pathways, 65% of Gen Z students express concern about the risks associated with choosing the wrong postsecondary path.
  • 68% of Gen Z high school students say they are concerned about college debt.
  • The top two barriers Gen Z high school students report to pursuing non-degree pathways are family expectations (42%) and their perception that employers favor job applicants with college degrees (37%).
  • Gen Z students are still defaulting to degree programs because many believe employers favor degrees (37%), and they also fear there is too much risk associated with choosing the wrong non-degree postsecondary path (65%).

The report underscores a significant shift in attitudes toward education and career preparation, emphasizing the need to expand high-quality postsecondary options beyond traditional degree programs. It also highlights barriers, such as risk aversion and lack of information, that must be addressed to impact the ways in which students transition from education to career.​

Background

The impetus for the study is recognition that (1) college enrollment is on the decline, (2) Gen Z and their families are questioning the cost and value of higher education, and (3) employers are facing the challenges of filling jobs with talented candidates. The traditional message that college is the only path to a fulfilling career is in question, and studies are needed to examine what it means to be employable, and what professional and educational paths can lead to success.

Funding

This research was supported by a $25 million multiyear investment from ASA to JFF, leading to the establishment of the ASA Center for Career Navigation at JFF. This center focuses on helping individuals aged 16-24 navigate postsecondary education and career options. ​

Resources

American Student Assistance - ASA.org

Jobs for the Future

ASA Center for Career Navigation at JFF - Jobs for the Future (JFF)

https://www.jff.org/idea/degrees-of-risk/

https://expandopportunities.org/wp-content/uploads/2022/10/ASA_JFF_Degrees-of-Risk-.pdf