Do you know people with bachelor’s degrees or higher who drive Ubers, work at lower-level jobs or struggle to find good jobs?
If so, you are not alone.
Every CEO and recruiter claims a talent shortage, yet we have the most highly educated talent supply ever.
In reality, companies want only those who already have specific skills in narrow areas and often only those who attended certain schools.
This imbalance is causing a challenge for governments, organizations, and particularly recruiters who find themselves trying to find people who fit narrow definitions or filter the huge numbers of educated applicants who apply for fewer jobs with lower requirements and lower salaries.
The imbalance is huge and growing. According to the Organization for Economic Co-operation and Development (OECD), the percentage of adults with tertiary education (more than high school) has steadily increased over the past decades. In 2020, an average of 39% of 25–34-year-olds across OECD countries had a tertiary degree, up from 35% in 2010.
However, this increase in educational attainment hasn’t been matched by a corresponding increase in high-skill job opportunities. A study by the Federal Reserve Bank of New York found that in 2020, about 41% of recent college graduates were underemployed, working in jobs that typically do not require a college degree.
Several factors contribute to this growing disparity between the supply of highly educated workers and the demand for their skills:
This oversupply of talent presents both challenges and opportunities for recruiters:
The impact of this talent oversupply varies across different regions and industries. For instance:
To address this growing imbalance, various stakeholders need to take action:
While the current situation presents challenges, it also offers opportunities for innovation in the job market. The gig economy, remote work, and the rise of entrepreneurship are creating new avenues for highly educated workers to utilize their talents.
A report by Upwork predicts that by 2027, the majority of the U.S. workforce will be freelancers. This shift could provide more opportunities for highly educated workers to leverage their skills across multiple projects or clients.
Moreover, as industries continue to evolve, new job categories are emerging. The World Economic Forum estimates that 97 million new roles may emerge by 2025 across the care economy, green economy, and new technology-driven sectors.
The oversupply of highly educated and talented workers presents a complex challenge for societies and economies, particularly for recruiters.
We need greater collaboration between educational institutions, governments, employers, and recruiters. By bridging the gap between education and employment, we can create a more dynamic and equitable job market that fully leverages the potential of our highly educated workforce.
The role of recruiters in this evolving landscape is more crucial than ever. We must match candidates to current job openings, play a strategic role in influencing organizations to increase training and development opportunities for more educated people and work with hiring managers to redefine jobs and their requirements.
