What if you told your parents that your college degree feels like a waste? You’d probably get a raised eyebrow or a talking down. However, for Gen Z, this isn’t just a passing opinion, but a full-fledged trend. According to recent surveys, over half of Gen Z graduates feel their college degree hasn’t paid off. They believe the traditional formula of “study hard, get a degree, land a good job” is beginning to crumble.
Return On Investment
According to a Harris Poll conducted by Indeed, 51% of Gen Z respondents believe their degree was a waste of money. The reasons for this are as follows,
- The cost of a college degree has skyrocketed over the last twenty years, while starting salaries often fail to keep pace. Instead of having a clear career path, many Gen Z graduates are left with a degree and substantial debt.
- Another main culprit is student loans. The majority of respondents carry education debt, with 38% claiming that loans have held them back more than their degree has helped.
Accordingly, although education is still valued, the return on investment isn’t as satisfying for many of this generation.
AI: The Biggest Degree Disruptor
Gen Z lives in a world where AI is transforming everything, including their opinion on education.
According to Indeed’s data, 45% of Gen Z graduates think AI has made their degree irrelevant.
Why? Because,
- AI can perform tasks that previously needed human knowledge, everything from report writing to data analysis.
- Jobs now require constant upskilling, not just one-time qualifications.
AI is encouraging workers to prioritize their current skills over those they studied years ago.
Are Employers and Gen Z on the Same Page?
Interestingly, it’s not just Gen Z doubting degrees; companies are unsure as well.
According to a Pollfish survey, where over 1,200 corporate leaders participated,
- 40% of respondents believe that Gen Z college graduates are not ready for employment.
- Out of them, 94% stated they’re avoiding hiring fresh Gen Z graduates.
Their most common complaints are a lack of communication skills, professionalism, and trustworthiness. Companies don’t think that a degree guarantees a young employee is ready for employment.
Accordingly, the current job market is such that Gen Zers believe college didn’t adequately prepare them, and companies agree.
The Job Market Transition: Prioritizing Skills Over Degrees
According to Indeed’s survey, 60% of all respondents believe they could perform their jobs well even without a degree. Among Gen Z, this figure rises to 68%.
Many people attended college only because professions require it on paper, even when it didn’t match their actual job skills. However, that’s quickly changing:
- Big companies, such as Google, Apple, and Walmart, have shifted to skill-based hiring, placing greater importance on experience and portfolios.
- Approximately 45% of job listings on Indeed no longer require a four-year degree.
This move supports what Gen Z is already thinking: why take on so much debt, when companies don’t need a degree anymore to believe you can perform the job?
Not a Rejection but a Change in Education
However, let’s be clear: this is not a story about Gen Z rejecting education. The takeaway must be that Gen Z wants better. They’re not talking about skipping college; they’re saying, “If I’m going to spend years of my life and a hefty amount on this, it better be worth it.” And right now, the math doesn’t add up.
In the meantime, alternative paths are gaining popularity. Trade schools, coding boot camps, and online certificates are being widely accepted. These choices are often quicker, more economical, and better tailored to specific job markets. Gen Z is more open to unconventional, career-oriented learning pathways than earlier generations.
It’s Complicated but Degrees Are Important
The truth is, college still pays off for some people.
The Bureau of Labor Statistics states that college graduates continue to earn more on average than non-graduates. However, this is not automatic, and it’s not applicable to everyone.
- STEM degrees are still associated with stable, well-paying jobs.
- Degree in liberal arts? It depends on your network, internships, and job market.
- Timing and luck can play a key role, just as your degree.
So, what’s the lesson? A degree is no longer a golden ticket. It’s just one choice among many.
What Needs to Change?
This is how everybody can adapt:
Employers:
- Ditch old-fashioned degree requirements when they’re not necessary.
- Adopt hiring practices that prioritize skills.
- Assist with training and upskilling to fill readiness gaps.
Colleges:
- Emphasize teaching practical skills over just theory.
- Be more transparent about post-graduate outcomes.
- Make learning modular and flexible, allowing students to learn while they work, with stackable credentials and online options.
Students:
- Research job opportunities in your chosen field and don’t hesitate to pursue nontraditional paths if they fit your objectives better.
- Consider college as an investment, not a default.
Gen Z Is Practical, not Lazy
The truth is, Gen Z isn’t rejecting education; they’re transforming it.
They’ve seen the repercussions of student loans piling up and broken promises about job opportunities. They’re asking tough questions, and that’s a smart move. They want an education that’s practical, fair, and adaptable.
So, is college a waste?
For many, in its present form—yes. However, it doesn’t have to be that way. The real challenge is making education align more closely with reality.
And if Gen Z continues to push this discussion forward, we could end up with something better.
