February 21, 2013

HIGHER EDUCATION BUBBLE UPDATE: It Takes A B.A. To Find A Job As A File Clerk.

The college degree is becoming the new high school diploma: the new minimum requirement, albeit an expensive one, for getting even the lowest-level job. Consider the 45-person law firm of Busch, Slipakoff & Schuh here in Atlanta, a place that has seen tremendous growth in the college-educated population. Like other employers across the country, the firm hires only people with a bachelor’s degree, even for jobs that do not require college-level skills.

This prerequisite applies to everyone, including the receptionist, paralegals, administrative assistants and file clerks. Even the office “runner” — the in-house courier who, for $10 an hour, ferries documents back and forth between the courthouse and the office — went to a four-year school. . . .

Economists have referred to this phenomenon as “degree inflation,” and it has been steadily infiltrating America’s job market. Across industries and geographic areas, many other jobs that didn’t used to require a diploma — positions like dental hygienists, cargo agents, clerks and claims adjusters — are increasingly requiring one, according to Burning Glass, a company that analyzes job ads from more than 20,000 online sources, including major job boards and small- to midsize-employer sites.

This up-credentialing is pushing the less educated even further down the food chain, and it helps explain why the unemployment rate for workers with no more than a high school diploma is more than twice that for workers with a bachelor’s degree: 8.1 percent versus 3.7 percent.

Some jobs, like those in supply chain management and logistics, have become more technical, and so require more advanced skills today than they did in the past. But more broadly, because so many people are going to college now, those who do not graduate are often assumed to be unambitious or less capable.

Requiring a major investment of money and time for even entry-level jobs just serves to limit opportunity further and promote class stratification. Kids of well-off parents can afford college; others not so much, especially with tuition skyrocketing.