Yesterday we took an interesting look at how Millennials are drastically changing the consumer scene. The Gen-Y consumer is one based on lifestyle brands, which in itself is creating consumer horizontalization across all segments. To go along with this, Gen-Y is having an overwhelming effect on education and the workforce. And as we continue to explore and answer “how will Gen-Y change the world,” we will look at what these effects are causing not only to Gen-Y but the greater whole of society.
Gen-Y and the (De)value of Education
Education is a privilege, opportunity and experience few of us get to enjoy. It’s an absolute accomplishment and should never be taken for granted, especially in a world where only few get to truly enjoy it. And as powerful and important and necessary as education is, it seems to be taking on a dramatic turn in the Western world. Something that will seriously affect Gen-Y.
The value of education is extraordinary. And we’ve seen it’s positive impact across the globe for those who encounter it. For Gen-Y, education was the promise of a better life. “You’ll always have something to fall back on” or “get ready to start your career” and even all other opportunities that education historically offered are disappearing. As Gen-Y flocks to universities and colleges and as those organizations look to increase enrolment, the institution of education is increasingly devalued. And don’t be mistaken here, the education itself is still great and consistently carries the same educational value. The dilemma lies in the fact that having an education is simply not worth the same as before. And this will have profound effects.
As a Millennial myself with a Double Major Bachelor Degree and a Postgraduate Program Diploma, I can’t land a job. It’s ironic to think that after 5 years of solid education that no one is willing to hire me. This is a plague that all Gen-Y will have to endure. The global effects are even more overpowering. This means that as the rest of the world is trying to catch up in the simplest terms of providing education, we are entering an Era of the Masters Degree.
The Era of the Masters Degree
Education seemed to be the answer to getting a job before. Even the parents of Gen-Y believe this. As our Bachelor Degrees decline in value and we sit around waiting for jobs, two things occur: 1) we are enticed by our parents and ourselves to take further education or 2) we are enticed into pursuing the same level education but in a different category. This has caused the Era of the Masters Degree. As option 2 will just place you into the same boat as you currently are in, option 1 or pursuing the Masters Degree seems to be the right choice.
“Bachelors Degree required. Masters Degree preferred” is an increasingly used qualification that is beginning to trend, and something Millennials all cringe at seeing. What’s interesting with this is that you require higher levels of education for jobs that previously didn’t require it. What’s more interesting than that is the people that currently do that job or are hiring for it, don’t necessarily meet the qualifications themselves. I can almost see why Gen-Y feels they are entitled to more than they receive. And what’s even more interesting is the broader implications more education will have.
More Education = Less Work Experience
There is no doubt in my mind that the amount of Masters Degrees will increase considerably within Generation Y in comparison to previous generations. And I mean the numbers will be mind blowing, as anywhere at least between 15-25% of Gen-Y will graduate from a Masters program (note: I gathered this number from observations based on a variety of factors such # of job postings asking for, # of Gen-Y I’ve seen take on further education, and forecasting for the future). As Masters Degrees become more prevalent, we will see three implications begin to rise severely:
1) The amount of debt taken on by Gen-Y as a result of Bachelors education is quite large. To satisfy the Masters qualifications this debt will only increase. And this is only one of many debt issues Gen-Y will face.
2) The more education we receive the less work experience we gather. What’s interesting with this is that you need work experience to get a job but to get that experience you need a job. And on top of that you need higher education. It’s a catch-22 situation Gen-Y will constantly face.
3) There already seems to be a sense of joblessness as the ratio of graduates does not equal the amount of jobs available. As Gen-Y stays longer in school, they will face issues such as living at home longer and starting families later amongst other things.
Gen-Y will be more educated and less work experienced than any previous generation. As qualifications go up and jobs don’t equal the amounts of Gen-Y graduating (even as Baby Boomers retire many jobs are simply lost because they don’t exist anymore. Companies fail, jobs are lost, “we are doing more with less” are all aspects of jobs not equalling graduating Gen-Y even though Gen-Y will represent a serious number in the workforce in the next 5-8 years), we will see the entrepreneurial lifestyle emerge further. As a society, we will see education become increasingly commercialized. And the value of it will decline, as the Era of the Masters Degree looms. The fascinating and problematic issue is going to be whether previous generations are willingly to help us out or will we have to endure “that’s life” and “life is tough” responses. Maybe our best hope is in ourselves. Maybe Gen-Y will have bailout Gen-Y and fulfill our promises to a better life.
So stay tuned. If you haven’t read Part 1, I suggest you do. Otherwise, watch how Gen-Y is changing the world…
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Agree with you on that Josip! Thanks for this interesting conversation.
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