To understand how graduates of different majors are faring in the current job market, a new Georgetown Center on Education and the Workforce report examines unemployment rates and median earnings by degree for “recent college graduates” (ages 22-26 with bachelor’s degrees), “experienced college graduates” (ages 30-54), and “graduate degree holders” (ages 30-54 with at least a master’s degree).
The report, entitled Hard Times 2013, finds that the overall unemployment rate for recent graduates is 7.9 percent, with a range of about 7 to 9 percent depending on degree, excepting some notable outliers. Experienced graduates’ unemployment percentage hovered around 4 to 6 percent, while those with graduate degrees had unemployment rates of just 2 to 4 percent.
The report finds that undergraduate majors do matter—but not in the way we might expect. Some unemployment rates were surprising: a recent graduate majoring in music (8.6 percent) is slightly more likely to find a job than a recent computer science grad (8.7 percent). Recently graduated journalism and general engineering majors have the same unemployment rate, at 7 percent. The highest unemployment rates were among recent grads in information systems (14.7 percent) and architecture (12.8 percent), while the lowest were nursing (4.8 percent), elementary education (5 percent), physical fitness/parks and recreation (5.2 percent), chemistry (5.8 percent), and mathematics (5.9 percent).
Furthermore, earnings differentials between recent graduates’ majors are smaller than we might think: the median salary for most is between 30K and 40K per year. Recent grads in computer science and math make slightly more (45K), while recent engineering grads have the highest earnings (54K).
In many cases, what matters most is not degree field, but degree level and experience. For an experienced college graduate, median earnings typically increase by 20K to 30K, depending on degree. And, in most fields, getting a graduate degree pushes median earnings up an additional 10K to 20K.
Of course, it is important to take these findings with a grain of salt: while field of study and level of experience can certainly influence the likelihood of finding a job and the amount of money a graduate will make, they are not the only factors. The institution attended, year of graduation, location, and much more can significantly impact earnings and unemployment.
To read the full report and see a complete breakdown of earnings and unemployment rates by major and experience level, click here.
The Student Right to Know Before You Go Act of 2013, a bipartisan federal bill championed by Senators Wyden (D-OR), Rubio (R-FL) and Warner (D-VA) and Representatives Andres (D-NJ) and Hunter (R-CA), was introduced in both chambers of Congress last week. The bill seeks to give students and their families more information about graduation rates, student debt, transfer rates, expected earnings and other important considerations. The goal is to centralize the data so that families can make an informed decision about college.
While there is support for some of the major provisions in the bill, especially for more information on student debt, others are more controversial. The bill would create a federal unit-record database, which some privacy advocates fear could cause confidential data to leak and could enable the government to use data for non-educational purposes. Currently, such databases are banned, which is a major hurdle to the passage of the bill.
Furthermore, while everyone agrees that students should have as much information as possible in making their decisions, colleges are concerned about increasing already onerous reporting requirements. Universities attempting to manage scarce resources are wary of diverting money from the academic mission towards reporting. The Government Accountability Office recently released a report indicating that college experts find existing reporting requirements, such as providing data on enrollment rates, campus safety, and cost of attendance, exceedingly burdensome.
It remains to be seen which, if any, pieces of the Student Right to Know Before You Go Act will move forward in the coming weeks. The Office of Federal Relations is tracking this measure. Please follow their blog to receive updates as this and other similar legislation continues through the House and Senate.
The University of Washington (UW) and Washington State University (WSU) (along with eight other top universities) have been selected by the National Science Foundation to participate in the Graduate 10K+ program, a $10 million initiative to increase graduation rates in STEM fields, particularly engineering and computer science. The UW will receive $970,000 and WSU will receive $700,000 over five years to fund their projects. The initiative is funded by the Intel Corporation, the GE Foundation and prominent hedge-fund manager and White House adviser Mark Gallogly. While the funding for this program is limited, experts hope it will encourage innovative pilot projects at the selected universities and prompt other companies and individuals to donate.
The UW, in collaboration with WSU, will use its funds to implement an “academic redshirt” program for engineering. The program will enroll low-income high school graduates in a five-year engineering degree program. The first year will focus on solidifying students’ math and science skills. Students will receive individualized advising as well as assistance with acclimating to university workloads. This will help them to be better prepared for the rigors of engineering study at the UW and will remedy learning gaps they might have from high school, hopefully increasing freshman retention and degree completion. After successful completion of the first year, the students will be accepted into one of the UW’s engineering departments. UW and WSU each hope to enroll 32 freshmen in the program, reaching a total of 320 students in five years.
To read more about the Graduate10K+ program, check out the Higher Ed Chronicle’s article or read more about UW’s redshirt program here.
Accenture, a management consulting firm, recently conducted a survey of 2011/2012 college graduates and 2013 pending graduates. The survey focuses on the 2011/2012 graduates’ job search experience, and asks them about their current jobs, salaries, and future education plans. Accenture then contrasts their responses with the employment expectations of pending 2013 graduates. Some interesting findings include:
- While more than 77 percent of 2013 grads expect to receive employer-provided training at their future job, only 48 percent of 2011/2012 grads actually received such training from their employer.
- 50 percent of 2011/2012 grads who are currently unemployed claim that they cannot find a job because companies believe they do not have enough experience, even though 72 percent of 2011/2012 grads participated in an internship during school.
- 41 percent of 2011/2012 graduates believe they are underemployed, meaning their job does not require a college degree.
- Yet despite the still-sluggish economy, 81 percent of 2011/2012 graduates report they found a secure job within 6 months of graduation.
- Of 2011/2012 graduates, 42 percent expect to pursue a graduate degree, but only 18 percent of 2013 grads expect to do so.
Accenture’s report points to the disconnect between employers’ and graduates’ expectations of employment, particularly when it comes to experience and training. The report encourages employers to hire based on potential and a broad skill base, not on specific expertise or perfect qualifications. Furthermore, it recommends that employers provide increased on-the-job training for recent graduates so they can gain necessary experience and job skills to supplement their educational qualifications. Finally, Accenture advises that employers work more closely with educational institutions to help better align their needs with university curriculums, and to provide more internship opportunities for students.
To read the full report, click here, or check out this summary from the Chronicle of Higher Education.
The 105-day state legislative session officially ended this Sunday, April 28th. Unfortunately, the state legislature was unable to reach a compromise on the budget by the end of the session. A significant cause of the impasse is the Washington State Supreme Court ruling that requires the legislature to fully fund K-12 education. The House budget proposal repeals eleven tax exemptions and extends several other taxes, diverting $1.17 billion into education, while the Senate version cuts several social programs to fund education with $1 billion. Governor Inslee has called a special session, to begin May 13th, in order to pass a compromise budget and to pass legislation on other issues such as universal background checks for gun purchases, the state DREAM act, tougher DUI laws, and the Reproductive Parity Act. When special session begins, all bills that have passed out of the house of origin will be reintroduced in that house and placed on third reading. Budget writers will stay in Olympia to try to work on a compromise in the next two weeks. As always, we will post any updates on their progress to this blog. Be sure to monitor the UW State Relations blog for updates as well.
Click here to watch Governor Inslee announce the special session. To read more about the proposed budgets and other legislation, check out this article.
Of the nearly 900 schools that received federal money for research and development (R&D) in FY 2011, the UW ranks first among public institutions and second overall in terms of federal research funding. According to a study by the National Science Foundation (NSF), approximately 20 percent of all federal R&D support went to just 10 universities. 24/7 Wall St. reviewed those universities, Table 1 summarizes their findings.
Johns Hopkins University, a private institution, topped the list with nearly $1.9 billion—more than doubling what any other university received that year. The majority of Johns Hopkins’ federal funding came from the Dept. of Defense and NASA. The university also brought in billions via fundraising efforts.
The UW came in second with almost $950 million in federal R&D funding—the most of any public school. The majority of the UW’s money came from the Dept. of Health and Human Services; however, the University was the top beneficiary of NSF funding, receiving more than $145 million in 2011.
Year after year, the same schools consistently receive the most money, said Ronda Britt, a survey statistician with the NSF. 24/7 Wall St. quotes her as saying, these universities “have big research programs that receive a lot of support year after year, and have a lot of infrastructure that helps them keep the money stable.” This holds true for the UW, which has ranked first among public schools since 1974. Having large endowments was another commonality of the top 10 schools, yet federal funding covered the bulk of R&D expenditures in all cases.
As these universities rely heavily on the federal government to support their research, many are concerned about the sweeping cuts of sequestration. The UW and other universities are preparing for a range of possible impacts. As described in our joint brief, the sequester could reduce the UW’s federal grant and contract support by an estimated $75M to $100M during FY13. The UW community is encouraged to remain cautious and conservative in spending federal awards and in planning for future federal funding.
On Monday, Governor Rick Scott of Florida signed a bill that gives special status and increased funding to Florida’s top two universities. The bill designates the University of Florida and Florida State University as “pre-eminent” universities and provides them with an extra $15 million per year, for five years, to help them become two of the top ten research universities in the nation. The money pays for increased faculty salaries and more research funding. In addition, legislators are considering restoring $300 million in funding that was cut in the 2012 legislative session. The bill also relieves the two universities of certain onerous reporting requirements. Eric Barron, president of Florida State, claims the increased funding will not only improve the quality of education at his university but also improve the return on investment of state money, because prominent faculty members will not be “raided” by other institutions were they would be paid much more.
The bill also provides $10 million more in funding for online degree programs this year, with $5 million appropriated in subsequent years. Tuition for online programs is capped to 75 percent of tuition for on-campus programs. The legislature would like to see increased out-of-state enrollment in these online courses, as online degree programs have already provided an additional $70 million in revenue a year for the University of Florida.
To read more about the Florida legislation, check out the Chronicle’s article here. To read about current proposals for higher education funding in Washington state, please see our recent briefs on Governor Inslee’s budget priorities or the Senate and House budgets.
The American Association of University Professors (AAUP) recently released its report on faculty salaries for 2012-2013. Salaries for full-time faculty members rose by an average of 1.7 percent in 2012-2013, which offsets inflation (estimated at 1.7 percent in 2012-13). However, increases varied widely across institution type—pay at private universities was much higher than salaries at public institutions, and professors at doctoral universities made significantly more than faculty at baccalaureate institutions. Furthermore, the survey counts only faculty members who are employed full-time; part-time adjuncts, whose pay is generally significantly lower than that of full-time professors, are excluded.
Inside Higher Ed has compiled a list of the highest-paid full professors in academia. Based on the average salary of full professors, Columbia University ($212,300), Stanford University ($207,300), University of Chicago ($203,600), Harvard University ($203,000) and Princeton University ($200,000) are the top five highest-paying institutions. Of the ten universities with the highest average pay, not a single institution is public. The highest-paid full professors at public institutions are at University of California, Los Angeles, ($167,000), New Jersey Institute of Technology ($166,700), University of California, Berkeley ($158,900), Rutgers University at Newark ($154,700) and Rutgers University at New Brunswick ($151,000).
Detailed information about the UW’s submission to AAUP can be found here. In addition, OPB has prepared a table that compares UW average faculty salaries to those at our Global Challenge State (GCS) peer institutions. UCLA and Rutgers University, whose full professors are some of the highest paid in academia, are both in the GCS peer group. According to our analysis, average faculty salaries (of full, associate, and assistant professors combined) would need to increase by 11.4 percent to equal the GCS peer average. The average salary of full professors would need to increase 16 percent and that of associate professors would need to increase 9.2 percent to equal the peer average. As can be seen on the graph below, the UW’s salaries moved closer to those of the GCS peers between 2003 and 2008, but this progress reversed in 2009, when the legislature imposed a four-year salary freeze.
House Ways & Means Chair Ross Hunter released the House budget proposal today. Please see the OPB Brief for a complete analysis. Table 1 shows the total funding the UW would receive under the House chair budget, divided into three standard categories: the carry forward level, the maintenance level and the performance level.
The House assumes that the UW will increase undergraduate resident tuition by 5 percent each year, thus making more revenue available. However, the House Chair budget requires that $2 million go toward the College of Engineering, $12 million be used to create a Clean Energy Institute, and a total of $16.5 million of the appropriation be used to support enrollments in Computer Science and Engineering.
As shown in the table below, once recognized additional operational needs are met and once dedicated funds are removed from the equation, the UW is left with almost $10 million less in net new state funding in 2013-15 compared to the previous biennium under the House budget. Once the potential additional tuition revenue is taken into account, however, the UW fares better under the House budget, even with its spending requirements. Moreover, the Senate relies on a draconian 20 percent surcharge on international student tuition to generate this additional funding amount. As mentioned in our previous brief, given that the majority of international students in Washington are enrolled at the UW, this amounts to a tax on UW students. It is expected that the surcharge will lead to a decline in international student enrollments, which could lead to an overall reduction of revenue for the UW.
We are still reviewing the potential impacts of this budget proposal and will provide revisions to the brief as more information becomes available. Once the House chair budget passes the floor (which is expected later this week), leaders of the House and Senate will begin negotiations to reconcile the differences between their respective approaches. It is likely that the UW will not have a clear sense of its actual anticipated state funding level until the end of this month at the earliest.
For the first time since “9/11”, the number of Chinese students applying to American graduate programs has declined significantly. According to a Council of Graduate Schools report released today, the number of graduate applications from China is down 5 percent this year, after having risen by 19, 21 and 20 percent in the previous three years.
The drop in graduate applications from China was offset by increases from India and Brazil, resulting in an overall increase of 1 percent in international student applications. However, this figure remains concerning: international graduate applications had increased by 9, 11 and 9 percent in the previous three years.
This news comes as the Washington State Senate contemplates imposing a 20% surcharge on tuition paid by international students to fund higher education in the state. The UW has already warned the such a surcharge would drive away top talent, reduce positive externalities associated with diversity, and generally make the UW less competitive compared to its peers. Today’s report merely strengthens the argument: even without the surcharge, the UW will be competing for a shrinking pool of top international talent.
To follow developments regarding the surcharge proposal (SB 5893), visit BillTracker.
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