Chasing the American Dream: Recent College Graduates and ...

Chasing the American Dream:
Recent College Graduates
and the Great Recession

by
Charley Stone, M.P.P.
Carl Van Horn, Ph.D.

Cliff Zukin, Ph.D.
May 2012

John J. Heldrich Center for Workforce Development
Edward J. Bloustein School of Planning and Public Policy

Background worktrends

The John J. Heldrich Center for Workforce Since its inception, the Heldrich Center has
Development at the Edward J. Bloustein sought to inform employers, union leaders,
School of Planning and Public Policy at policymakers, community members, the
Rutgers, The State University of New Jer- media, and academic communities about
sey was founded as a research and policy critical workforce and education issues that
organization devoted to strengthening New relate to the emerging global economy.
Jersey’s and the nation’s workforce dur-
ing a time of global economic change. The To better understand the public’s attitudes
Heldrich Center researches and puts to about work, employers, and the govern-
work strategies that increase worker skills ment, and improve workplace practices
and employability, strengthen the ability of and policy, the Heldrich Center produces
companies to compete, create jobs where the Work Trends surveys on a regular basis.
they are needed, and improve the quality (The complete set of reports is available at
and performance of the workforce develop- www.heldrich.rutgers.edu.) The surveys poll
ment system. the general public on critical workforce is-
sues facing Americans and American busi-
Since 1997, the Heldrich Center has expe- nesses. The survey findings are promoted
rienced rapid growth, working with federal widely to the media and national constitu-
and state government partners, Fortune encies.
100 companies, and major foundations.
The Center embodies its slogan “Solutions The series is co-directed by Carl E. Van
at Work” by teaming with partners and cli- Horn, Ph.D., Director of the Heldrich Center,
ents to translate cutting-edge research and and Cliff Zukin, Ph.D., Senior Faculty Fellow
analysis into practices and programs that at the Center and Professor of Public Policy
companies, unions, schools, community- and Political Science at Rutgers University.
based organizations, and government offi- Chasing the American Dream: Recent Col-
cials can leverage to strengthen the nation’s lege Graduates and the Great Recession
workforce. continues to advance the goals of the Work
Trends series to give American workers a
The Center’s projects are grounded in a voice in the national economic policy de-
core set of research priorities: bates, and thereby provides policymakers
and employers with reliable insights into
ƒƒ Disability Employment how workers across the nation are judging
and acting upon the realities of work and
ƒƒ Evaluation, Management, and Employ- the workplace.
ment

ƒƒ Industry, Education, and Employment

ƒƒ Reemployment

ƒƒ Work Trends and Economic Analysis

1

Chasing the American Dream: Recent College Graduates and the Great Recession

Introduction The final section examines how recent col-
lege graduates see their financial futures.
This report describes the findings of a na-
tionally representative sample of 444 recent The survey was fielded between March 21
college graduates from the class of 2006 and April 2, 2012 by Knowledge Networks
through 2011. The purpose of this study is of Palo Alto, California. Knowledge Net-
to understand how recent college gradu- works has the only nationally representative
ates are faring in the workforce, specifically sample of college graduates (between the
looking at those individuals who graduated ages of 22 and 29) that can be surveyed
before and during the difficult labor market online. The overall survey has a sampling
caused by the Great Recession. The na- error of +/- 5 percentage points. The ques-
tional recession officially began in late 2007 tionnaire used and details of the sampling
and ended in 2009. However, we classify methodology can be found in the appendix.
students graduating from 2006 and 2007
as “pre-recession” graduates and students EMPLOYMENT STATUS OF
graduating in 2009, 2010, and 2011 as THE SAMPLE
“recession”-era graduates because the
unemployment situation was dire during A full description of the status of all 444
this entire period, even though economic college graduates can be found in Table
growth was positive. A previous study, 1. The table shows that one in two college
Unfulfilled Expectations: Recent College graduates were employed full time at the
Graduates Struggle in a Troubled Economy, time of the survey and another 26% were
conducted by the John J. Heldrich Center working part time. One in five were attend-
for Workforce Development in May 2011 ing graduate or professional school. Twelve
surveyed 571 graduates from the years percent were either unemployed (6%) or
2006-2010. The 444 college graduates that underemployed (6%) (that is working part
comprise the sample for the April/May 2012 time and seeking full-time employment).
study include 315 respondents who were
re-interviewed and 129 new respondents FIRST JOB
who graduated in 2011.
About three-quarters reported having
The research explores a number of topics at least one full-time job since gradua-
related to the experience of recent college tion. The median salary earned by these
graduates in the workforce. The first two graduates was $28,000. Table 2 shows the
sections of the report analyze respondents’ variation seen between groups. Those who
current and past experience in the labor graduated during the recession-era labor
market through a series of questions asking market (2009 to 2011) earned $3,000 less
about their job search, the specifications on average in their first job than those who
of the job they chose, and their satisfaction graduated before the recession began.
with the job attributes. The third section Their median salaries amount to $27,000
examines the college experience of these and $30,000, respectively. In addition,
graduates, with a particular focus on col- students who completed an internship
lege funding and debt. The fourth section while in college earned nearly 15% more on
looks at how well recent college graduates average—$30,000 versus $26,000—than
feel they were prepared for the job market.

2

TABLE 1. EMPLOYMENT AND EDUCATION- worktrends
AL STATUS
those who did not undertake an internship.
Employment/Education Total Similarly, graduates who found a job related
51% to the field in which they got their degree
Employed full time 6% benefited by the same amount. Male col-
lege graduates made more than female
Working part time, looking 6% graduates on average. The median annual
for full-time work salary for men was $30,000, compared to
6% the median salary for women of $28,000.
Working part time, not Lastly, those paid a salary made more
looking for full-time work 5% ($35,000) than those who were paid an
hourly rate ($25,000).
Unemployed and looking 6%
for work now Many graduates were disappointed with
14% their starting salary; over half reported that
Unemployed but not it was less than they had expected it to be.
looking for work now 3% About 40% said they expected to earn the
3% starting salary they were offered and nearly
Attending graduate or professional 1 in 10 reported their salary was higher than
school, not employed * they expected it to be. In addition, nearly
60% of graduates were paid by the hour at
Attending graduate or their first job. Only 37% were given a salary
professional school, employed (see Figure 1).
part time or full time
The vast majority (80%) of those who found
Military employment landed their first job either
while they were still in college (44%) or
Volunteer within the first six months after graduat-
ing. About three-fourths believed they were
Self-employed accepting permanent positions. The other
quarter were clearly temporary jobs. Sixty-
TABLE 2. FIRST JOB STARTING SALARIES1 five percent reported that their first job was
very or somewhat closely related to the
All graduates Median field in which they received their degree.
Pre-Recession (2006-2007) Starting The other 35% reported that this job was
Recession (2009-2011) Salary not closely or not at all closely related to
Did internship $28,000 their degree (see Figure 2).
No internship $30,000
Male $27,000 The quality of the first job, however, left
Female $30,000 some graduates disappointed. Only 4 in 10
First job very/somewhat $26,000 reported that their job required a four-year
related to degree $30,000 degree. Moreover, as Figure 3 illustrates,
First job not very/not all $28,000 only 2 in 10 saw their first job as being on
related to degree $30,000 their career path. Forty percent reported
Paid salary that it was just a job to get them by and
Paid hourly $26,000 nearly the same number said their first job
was a stepping stone to a career.
$35,000
$25,000 3

Chasing the American Dream: Recent College Graduates and the Great Recession
FIGURE 1. COMPENSATION OF FIRST JOB

Self-employed/
commission/
stipend
4%

A salary
37%

By the hour Very closely
59% 39%

FIGURE 2. RELATIONSHIP OF DEGREE TO FIRST JOB

Not at all related
24%

Not very closely
11%

Somewhat closely
26%

4

worktrends

FIGURE 3. CHARACTERIZATION OF FIRST JOB ON CAREER PATH

A career
22%

Just a job to get you
by

42%

A stepping stone to a
career
36%

Despite the misgivings that some college graduates seem to be in slightly better situ-
graduates expressed about their first jobs, ations at their current job when compared
6 in 10 reported that they were very or to their first job. The median salary has in-
somewhat satisfied with their job. Twelve creased by almost 15% — from $28,000 at
percent were neither satisfied nor dissatis- their first job to $32,000 at their current job.
fied, and the remaining 23% were some- Respondents also are slightly more satis-
what or very dissatisfied with their job. And, fied at their current job. Fully three-fourths
many graduates stayed at their first job for reported being very or somewhat satisfied
a while. Thirty-four percent reported that with their current job compared to 64% at
they still work for their first employer and their first job. In addition, more graduates
over a quarter worked there for two years have found jobs they believe to be a career
or more. — 30% compared to 22%. In what follows,
the current employment situation of college
Current Job graduates is explored in more detail.

Of those who are employed, over 80% of The current employment situation of college
the sample has already transitioned from
their first job out of college to another job. graduates is fair. Of those who are currently
When asked about their current job, half
said they obtained their current job without employed (51% of the total sample), fully
any interruption, yet 3 in 10 experienced
some period of unemployment before they three-fourths have found full-time em-
obtained their current job. Overall, college
ployment, leaving only a quarter who are

working part time. However, only half of all

college graduates are paid an annual sal-

ary. The other half are paid by the hour (see

Figure 4). 5

Chasing the American Dream: Recent College Graduates and the Great Recession

FIGURE 4. HOW ARE YOU PAID?

Other
3%

A salary
46%

By the hour
52%

For those fortunate enough to be paid a Hourly workers who owed money when
salary, the median starting annual income they graduated made slightly less than
was $32,000, which represents a slight those who did not owe money ($10 com-
increase over the first job median salary of pared to $10.50).
$28,000. For those who work for an hourly
rate, the median starting wage was $10.23 Not surprisingly, graduates who obtained
per hour. Table 3 shows how respondents’ jobs requiring a four-year degree fared
starting compensation at their current job better than those whose jobs do not re-
varies among groups. For those paid a sal- quire one. The median compensation for
ary, men received a higher starting wage jobs that required a four-year degree was
than woman at their current jobs, $35,000 $37,750 or $11 per hour, compared to
compared to $25,500. However, women $32,500 or $10 per hour for jobs that did
fared better than men when working jobs not require a degree. College graduates are
paid by the hour, $12 compared to $9. also making progress with regard to their
Those who owed money to pay off their compensation. When asked about their cur-
college education when they graduated rent compensation, the median salary rose
made a salary slightly higher ($35,000) than to $40,000 and the hourly rate rose to $12
those who did not owe money ($30,800). an hour.

6

As Figure 5 illustrates, 4 in 10 college worktrends
graduates are currently working a job that
does not require a four-year college degree. their job is very closely related to their ma-
Likewise, many took a job outside of the jor, 22% said their job is somewhat closely
field they studied in college. Only 40% said related to their major, and another 40%
believed their job is not closely or not at all
related to their major.

TABLE 3. STARTING SALARY AT CURRENT JOB2 Median Starting Median Starting
Salary Hourly Wage
Total $32,000 $10.23
Pre-Recession (2006-2007) $32,000 $8.50
Recession era (2009-2011) $30,400 $10.80
Male $35,000 $9.00
Female $25,500 $12.00
Owed money when graduated from college $35,000 $10.00
Did not owe money when graduated from college $30,800 $10.50
Job requires a four-year degree $37,750 $11.00
Job does not require a four-year degree $32,500 $10.00

FIGURE 5. DID THIS JOB REQUIRE A FOUR-YEAR COLLEGE DEGREE?

Don't know
7%

Yes
50%

No
43%

7

Chasing the American Dream: Recent College Graduates and the Great Recession

SEARCHING FOR THEIR offer or alternative. Less frequently, respon-
CURRENT JOB dents took their job because of the location
(12%), for the experience (5%), or it was
For those working, the search to find their close to family or friends (6%).
current job was fairly short. Almost a quar-
ter found a job within two months of start- Although most graduates did find employ-
ing their search and just about half found a ment, many had to make sacrifices in order
job within the first six months. Only about to do so. As Figure 6 illustrates, 24% of
a quarter searched longer than six months graduates had to accept earning a lot less
and the remaining quarter was unsure than they had expected in order to get this
about how long it took them to find a job. job. Likewise, a quarter had to work below
When asked why they took this particular their education level and another quarter
job, about a quarter took their job be- had to accept a job outside their field in or-
cause of the salary and benefits offered der to gain employment. In addition, some
or because it provided an opportunity for had to accept working less favorable hours
professional development. Another 20% (16%), move to another community (13%),
took their job because they had no other take a job without health care benefits
(13%), or accept a temporary job (6%).

FIGURE 6. DID YOU HAVE TO ACCEPT ANY OF THE FOLLOWING IN ORDER TO GET THIS JOB?

Work below my level of education 27%
24%
Earn a LOT less than I originally expected to 23%
Accept a job outside my field of interest and 16%
13%
education 13%
Work less favorable working hours 6%

Move to another community

Take a job without healthcare benefits

Accept a temporary job

8

PERCEPTIONS OF CURRENT worktrends
JOB
their current jobs. Over two-thirds were
College graduates are mixed in their per- very or somewhat satisfied with their jobs,
ceptions about their current job. When including a third that were very satisfied.
asked how they think about their current Less than 20% reported dissatisfaction
job, nearly 4 in 10 believed their current job with their current job. However, when asked
is just a job to get them by. About a third about specific attributes, respondents were
believed that their current job is a stepping slightly less satisfied (see Figure 8). About
stone to a career and 30% said they have 60% were very or somewhat satisfied with
found a job that is firmly on their career their health and medical coverage or their
path (see Figure 7). job responsibilities and tasks. About half
were very or somewhat satisfied with their
Although many have still not found jobs opportunities for advancement, opportuni-
they consider on their career path, college ties to get more education or training, and
graduates are overwhelmingly satisfied with their progress toward their career goals.
Less were satisfied with their total annual
income.

FIGURE 7. WHAT DO YOU THINK OF YOUR CURRENT JOB AS:

Just a job (to get you A career
by) 30%
36%

A stepping stone to a
career
33%

9

Chasing the American Dream: Recent College Graduates and the Great Recession
FIGURE 8. SATISFACTION WITH JOB ATTRIBUTES

Health and medical 59%
coverage provided by your 54%

employer 68%

Opportunity to get more
education/training from

your employer

Job responsibilities and
tasks

Opportunities for 48%
advancement at your job

Progress toward you career 52%
goals

Your total annual income 44%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Profile of Students and families also relied upon a
Student Debt variety of other strategies to pay for a col-
lege education (see Figure 9). More than 4
It has been widely reported that college in 10 (41%) students personally contributed
student debt has been increasing in re- to their education using their earnings or
cent years as the cost of higher education savings. In fact, more than 8 in 10 (82%)
increases at public and private institutions students worked during the school year
and as more students enroll in postsecond- (36% full time) and nearly all — over 9 in
ary institutions. In 2010, student loan debt 10 — worked during the summer between
— about $1 trillion — exceeded the amount semesters at school. Scholarships from col-
that Americans owed in credit debt and the leges and direct payments by parents and
cost of a college education increased at relatives were the other sources for funding
a rate greater than inflation over the past a college education.
three decades. Nearly 6 in 10 (56%) of
the recent college graduates in our survey
borrowed from a government program or
private banking institution. Another 8% said
they borrowed money from a parent or rela-
tive that they are going to pay back.

10

worktrends

FIGURE 9. HOW DID YOU FINANCE YOUR COLLEGE COSTS?

60% 56% 55%
50%
40% 47%
30%
20% 41%
10%
8% 6%
0% Other

Loan from Scholarship Parents/relatives Personal work Loan from your
other source, or savings parents or other
from the paid
such as a relatives that
student loan college or other you’re paying

from the source back
government

Upon graduation, the majority of students Progress in Paying off
(55%) owed $20,000 (median) to pay off the Debt
costs of their education. While those gradu-
ating during the recession owed about One to five years since graduation, most of
the same as those graduating before the the students in our survey have made very
recession, there were important differences little progress in paying down their debt.
among recent college graduates (see Table Only 13% have paid off all of their debts for
4). For example, the median public college their college education; one in four has not
or university debt was $18,680 whereas paid off any of it, thus far (see Figure 10).
private college debt was $24,460. Male Four in ten who graduated in 2009, 2010,
graduates owed $5,000 more than female and 2011 reported that they yet to pay off
graduates ($25,000 versus $20,000). Re- any of their debt. Compounding their finan-
cent college graduates enrolled in graduate cial challenges is the fact that nearly half
and professional programs already owed (46%) reported that they also have other
$10,000 more than those who have not financial debts, such as credit cards.
pursued additional education ($20,000 ver-
sus $30,000). College graduates already in These findings are understandable given
the workforce who earn less than $30,000 the labor market difficulties and modest
per year owed the same amount in college earnings that recent college graduates are
loans, compared with the $20,000 owed by experiencing, as noted above. Just over
working college graduates who earn be- half were employed full time. Nearly one in
tween $30,000 and $60,000. four were either unemployed (6%), or un-
employed and not looking for work (5%) or

11

Chasing the American Dream: Recent College Graduates and the Great Recession

TABLE 4. MEDIAN DEBT OWED UPON GRADUATION3

All students Median Debt Owed
Recession Upon Graduation
Students graduating pre-recession
Students graduating recession era $20,000
Education
Public college/university debt $20,000
Private college/university debt $20,000
Gender
Male graduates $18,680
Female graduates $24,460
Further education
Recent graduates enrolled in graduate or professional program $25,000
Recent graduates not pursuing further education $20,000
Income
Employed college graduates earning less than $30,000 $30,000
Employed college graduates earning $30,000 to $60,000 $20,000

$30,000
$20,000

FIGURE 10. HOW MUCH OF THIS DEBT HAVE YOU PAID OFF SO FAR? (OF THOSE WHO SAID
THEY OWED MONEY AFTER GRADUATION)

Only graduate 62% 29% 5% 2%
students 3%

All students 28% 46% 9% 5% 13%

0% 20% 40% 60% 80% 100%

None One-quarter Half Three-quarters All of it

12

working part time and looking for full-time worktrends
work, (6%) or not working while attending
graduate school (6%). than $20,000 per year were more likely to
have borrowed money from non-family
Moreover, most of the one in five recent sources (42%) than those earning $50,000
college graduates enrolled in graduate and or more (30%).
professional education are borrowing ad-
ditional funds for tuition and living expenses The Impact of College
and, with few exceptions, are struggling Debt on Recent College
to pay off their undergraduate debts. Over Graduates and their
6 in 10 students enrolled in graduate and Parents
professional school have not paid off any of
their debt. The burden of student loans reveals its
impact in the lifestyle decisions made by
The current earnings of those who are young college graduates (see Figure 11).
employed full or part time also do not More than one in four (27%) said their deci-
leave much room for paying off outstand- sion to live with parents or family members
ing loans. Median starting salaries were was due to the need to save money that
$30,000 for 2006 and 2007 and $27,000 for could be directed to pay off their college
those entering the workforce in 2009, 2010, loans. Significant numbers of students are
and 2011. Moreover, students earning less also taking jobs they are not enthusiastic
about so they can pay down their loans

FIGURE 11. THE EFFECT OF COLLEGE DEBT ON BEHAVIOR (OF THOSE WHO HAVE COLLEGE DEBT)

Delayed a major purchase, such as a home 40%
or a car

Put off continuing your education 28%

Moved in with your parents or family 27%
members to save money 25%
18%
Took a job you weren’t enthusiastic about 14%
because the salary allowed you to pay your

student loans back more quickly

Took a part-time job to supplement your
income

Delayed marriage or another committed
relationship

0% 10% 20% 30% 40% 50%

13

Chasing the American Dream: Recent College Graduates and the Great Recession

(25%) or delaying the further education that College
most think they will need (28%). Nearly one Preparation
in five have taken a second job to help pay
all their bills. The debt burden is also influ- Today’s graduates from four-year colleges
encing the decisions of 40% of our respon- are entering the labor market with a sense
dents to delay major purchases such as a of insecurity about their preparation. While
car or house. Another 14% also reported it is, of course, perceptual and they may
that they are delaying marriage or other not have any way of actually knowing, half
committed relationships due to their loan of them felt they are less well prepared for
obligations. the world of work than was the generation
before them. Just 28% felt they are better
Most recent college graduates are also far prepared, and 21% felt that they are simi-
from financially independent of their parents larly prepared to the previous generation
or other family members (see Figure 12). (see Figure 13). Tellingly, just 23% thought
Family members are helping their young they can have the kind of successful career
graduates with basic necessities, such as that they want with just their undergraduate
food (22%), health care (15%), housing degree. Almost two-thirds either thought
(30%), and car payments (9%). Overall, they will need more education (39%) or
51% of the respondents to our survey get have already gone back to school for more
financial support from their parents or rela- education (26%), with the remaining 11%
tives. offering no opinion.

FIGURE 12. THINGS THAT YOUR FAMILY MEMBERS HELP YOU WITH FINANCIALLY (TOTAL
COLLEGE STUDENTS)

Living situation (such as mortgage, rent, or just 30%
living with parents or relatives) 24%

Miscellaneous bills (such as cell phone bills)

Food 22%

Healthcare costs 15%

College loans 10%

Car payment 9%

Other 6%

Savings 3%

0% 5% 10% 15% 20% 25% 30% 35%

14

worktrends
FIGURE 13. HOW PREPARED ARE COLLEGE STUDENTS TO ENTER THE LABOR MARKET, COM-
PARED TO A GENERATION AGO?

Better prepared

28%

Less prepared

48%

No difference

21%

Generally speaking, recent college gradu- (37%) to get a job — that they had acquired
ates said their education prepared them the skills employers were seeking. Here,
pretty well to be successful on the job. By one-third said they were not very well or not
a wide margin of 62% to 23%, far more at all prepared.
said their college education prepared them
either extremely or pretty well to be suc- Internships played a key role in the prepara-
cessful in their jobs than said they were not tion of students for the workforce in each of
very well or not at all well prepared to suc- these three areas:
ceed. They were less enamored with, but
still positive about, how well prepared they ƒƒ Nearly 7 in 10 (69%) of those who did
were to get a job, and they were clearly internships said college prepared them
unhappy with how their education prepared either extremely or pretty well to be
them to look for a job (see Figure 14). Just successful in their jobs, compared to
about half said they were not at all prepared 57% of those who did not do intern-
(24%) or not very well prepared (24%) to ships.
look for a full-time job upon leaving col-
lege. In contrast, just one-third said they ƒƒ Sixty-five percent of those completing
were well prepared. Only 8% said they were internships rated their college as doing
extremely well prepared for job hunting. On an extremely or pretty good job prepar-
the flip side, just over half said they were ei- ing them to get a job, compared to
ther extremely (16%) or pretty well prepared just 44% of those who did not take an
internship.

15

Chasing the American Dream: Recent College Graduates and the Great Recession
FIGURE 14. HOW WELL DID YOUR COLLEGE EDUCATION PREPARE YOU?

100%

75% 8% 16% 16% Extremely well
Pretty well
27% 46% Not very well
Not well at all
50% 37% 18%
5%
25% 24% 23% To be successful in
0% 10% your full-time job
24% To get a full-time job

To look for a full-time
job

ƒƒ Forty percent of those taking intern- Another way to look at this, however, is to
ships said college did well in helping focus on those who come out of college
them find a job, compared to 31% of feeling fully capable in each area, or those
those not doing internships. who say they have extremely well-devel-
oped skills in each area. This more critical
The survey asked how well college pre- look finds the 50% barrier broken in only
pared them for eight different skill sets that one case — 53% said college did an ex-
employers often cite as important to suc- tremely good job in teaching them to gather
cess in the workplace (see Figure 15). The information. About 4 in 10 felt they acquired
combined bars for the “extremely well” top-level skills in communicating in writing,
and “pretty well” answer categories paint the essential area of critical thinking and
a picture of the graduates’ overall satisfac- problem solving, and skills related to time
tion with almost all basic skills — 90% or management and professionalism. There
better for information gathering and com- is a drop from this level to just one in three
municating in writing, and in the high 80% who felt they emerged from college with
range for critical thinking, working in teams, high-level competencies in three central
communicating verbally, and skills related basic skill areas: quantitative skills (includ-
to time management and professionalism. ing math and technology), communicating
Down from this, but at about three-quarters verbally, and leadership skills. These are
generally satisfied, are quantitative skills low numbers for such central skills.
and leadership skills.
Internships made a modest difference in
16 skill delivery in four of the eight areas, but
not all necessarily in expected ways (see
Table 5). Those taking internships were

worktrends
FIGURE 15. HOW WELL DO YOU FEEL YOUR COLLEGE EDUCATION CONTRIBUTED TO YOUR
DEVELOPMENT OF THESE SKILLS?

Gathering information 53% 40%

Communicating in writing 40% 50%

Critical thinking and problem solving 42% 45%

Working in teams 34% 53%

Communicating verbally 29% 57%
38% 47%
Skills related to time management and 34%
professionalism 43%
31% 46%
Quantitative skills, such as math and
technology skills

Leadership skills

0% 20% 40% 60% 80% 100%
Extremely well Pretty well

about 10 percentage points more likely to they would have done differently is to have
say they have extremely well-developed been more careful in choosing a major —
skills in four of the areas, including leader- 37% said they would have done something
ship skills, communication skills, and quan- different in this area.4 Just under 30% said
titative skills. There was very little difference they would have done more internships or
between those who did and did not do in- worked part time. Given the large number
ternships in the areas of time management who did work in college (80%), it is likely
and professionalism, working in teams, and that most of these answers are referring to
problem solving. internships. Additionally, one-quarter said
they would have started their job search
While students were generally satisfied with much earlier in their college career; one-fifth
their college educations, two out of three said they would have taken more career-
graduates would do something different if related classes. Just 14% said they would
they had it to do over. Their answers con- have chosen a different college to attend
tain guidance for current and future college and only 3% said they would not have gone
students (see Figure 16). The foremost thing to college.

17

Chasing the American Dream: Recent College Graduates and the Great Recession
TABLE 5. SKILL RATING OF EXTREMELY WELL, BY INTERNSHIP STATUS

Type of Skill Took Internship No Internship Percentage Point
Difference
Leadership 38% 26% 12%
Written communication 48% 36% 12%
Verbal communication 35% 24% 11%
Quantitative 40% 30% 10%
Critical thinking/problem solving 47% 40% 7%
Working in teams 37% 32% 5%
Time management/professionalism 40% 37% 3%
Information gathering 55% 54% 1%

FIGURE 16. THINKING BACK TO COLLEGE, IS THERE ANYTHING YOU WOULD HAVE DONE
DIFFERENTLY TO BE SUCCESSFUL TODAY?

Been more careful about selecting my major 37%
or chosen a different major 29%
24%
Done more internships or worked part time 20%
14%
Would have started looking for work much
sooner while still in college

Would have taken more classes to prepare for
a career

Would have gone to a different college

Would not have gone to college 3%

0% 5% 10% 15% 20% 25% 30% 35% 40%

18

These answers are completely in keep- worktrends
ing with the findings in last year’s study,
Unfulfilled Expectations: Recent College they regret not taking more business/fi-
Graduates Struggle in a Troubled Economy. nance classes (36%) and quantitative skills
Because they were anticipated, the 2012 classes (34%). Also on the list but lower
survey added questions to probe both ma- are writing classes (24%), math classes
jor selection and internship. It is apparent (21%), and speaking classes (15%). Finally,
that very little future-oriented thinking goes half said they took some sort of internship
into the selection of majors among college (29% for credit, 21% for pay), and half did
students. Far fewer than half (39%) report- not. One of the challenges facing higher
ed having thought about job opportunities education would seem to be how to revamp
in the field when deciding upon their major. the advising system to orient advice to
No other reason seems to have played a students to be career-focused earlier on in
significant factor in the choice of majors their coursework.
(see Table 6).
EXPECTATIONS FOR
Those saying they would have been more THE FUTURE
careful in their choice of majors were asked
what they would have done instead, with The cream of the crop of America’s youth,
the benefit of hindsight. The main answers graduates of four-year colleges and univer-
are that they would have gone into a pro- sities, believe the American dream of up-
fessional major (41%) or would have been ward economic mobility may have stopped
a STEM major — science, technology, with them. Just one-fifth said their genera-
engineering or math (29%) (see Figure 17). tion will have more success than the gener-
When asked what type of classes they wish ation before them. More than twice as many
they had taken more of, a majority of all (58%) said they will have less financial
recent college graduates said they wish success than the previous generation (see
they had taken more computer and tech- Figure 18). About a quarter said they expect
nology classes (56%). One-third each said to have about the same financial success
as the generation in front of them. One in
TABLE 6. WHICH, IF ANY, OF THESE THINGS three of this cohort believed that “hard work
DID YOU SERIOUSLY CONSIDER WHEN SE- and determination are no guarantee of suc-
LECTING YOUR MAJOR? cess,” and a quarter believed that “success
in life is pretty much determined by outside
Job opportunities in the field Total forces.”
Prepare me for graduate or College
professional education The picture is not quite as bleak when
The ability to balance 39% recent college graduates are asked to
work and family 15% compare their expected financial success
An average salary in that field to their own parents in that fewer think they
A starting salary in that field 10% will go backwards. But even here, only
Nothing about half (48%) thought they will have
8% more financial success than their par-
3% ents. About a third (29%) thought they will
25% do as well as their parents and one-fifth
(20%) thought they will not do as well finan-
cially as their parents did.

19

Chasing the American Dream: Recent College Graduates and the Great Recession
FIGURE 17. WHAT TYPE OF MAJOR WOULD YOU HAVE CHOSEN INSTEAD? (OF THOSE WHO
SAID THEY WOULD HAVE CHANGED MAJORS TO BE MORE SUCCESSFUL)

Professional major, like 41%
communications, education, nursing, or 29%

social work

A major in the field of math, science,
engineering, or technology

Business, like finance or accounting 17%
7%
Social science, like psychology, 4%
sociology, economics, or political

science

Humanities, like history, art, English, or
a foreign language

0% 10% 20% 30% 40% 50%

FIGURE 18. VISIONS OF FUTURE FINANCIAL SUCCESS

100% 16% 48%
90% More success than More success
80% generation before than parents
70%
60% 58% 20%
50% Less success than Less success
40% generation before than parents
30%
20% 24% 29%
10% About the same About the same
0%

Do you think, in general, people in your When it comes to your financial success in

generation will have… the future, do you think you will have…

20

worktrends

A sizeable number of the recession cohort, The survey asked recent college graduates
having graduated between 2009 and 2011, how far along they are in pursuing funda-
remain dependent on their families for some mental life goals such as buying a home,
significant help in meeting daily financial starting a family, having a stable career with
obligations. The data reported in Figure health insurance, and being financially com-
19 show the percentage of recent college fortable. They chose between response op-
graduates receiving financial help in each of tions of already having reached each goal;
seven areas. All told, 57% of the recession expecting to do so in the next few years,
cohort and 39% of those graduating in the the goal being a number of years off; or at
pre-recession years of 2006-2007 reported most pessimistic, the goal being at least 10
receiving help from parents or other family years off or never being attainable. There
members in at least one area. One-third of are a number of observations that can be
the recession graduates either live at home made from the data presented in Figure 20.
or get help with their housing, one-quarter
get help with the food budget and their
health care, and 32% get help with miscel-
laneous bills. Parental support drops signifi-
cantly for the older, pre-recession cohort.

FIGURE 19. PLEASE CHECK OFF ANY OF THE FOLLOWING THINGS THAT YOUR PARENTS OR
OTHER FAMILY MEMBERS HELP YOU WITH FINANCIALLY

Living situation (mortgage, rent, living with 20% 36%
parents/relatives)

Miscellaneous bills (such as cell phone bills) 14% 32%

Food 15% 26%

Healthcare costs 5% 24%

Car payment 4%
13%

College loans 10%
9%

Savings 3%
3%

Recession era Pre-recession 0% 5% 10% 15% 20% 25% 30% 35% 40%
2009-2011 2006-2007

21

Chasing the American Dream: Recent College Graduates and the Great Recession
FIGURE 20. HOW CONFIDENT ARE YOU IN THE NEXT 10 YEARS THAT YOU WILL...

100% 28% 18%
75%
32% 33% 41% 32%

25% 42%

50% 29% 32%

28% 43%

25% 31% 26%

29% 23% 23%

19%

14% 11% 7% 8% 4% 4%
0%
Have a job
Be able to Be able to where you Have a job Have a job Have a job
afford to buy start a family with good that provides that leads to
earned job security good quality,
your own enough to a career
home affordable
lead a health care
Already there comfortable
Next few years
A number of years off life
10 years or more/never

• The stacked column at the far right • Those graduating college between 2006
shows just one-third said they have and 2011 are split into thirds regarding
already secured a job firmly on their job security. One-third said they have
career path. However, another 43% said this now, another third expect to have
they are on track to do so in the next this in the near future, and the remaining
few years, leaving 23% who felt pessi- third said it is further down the road.
mistic about this happening for at least
a number of years. • Just 18% said they have a job where
they earn enough to have a comfortable
• Young people are furthest along in life, although another 42% said this is
terms of having health care in their jobs, achievable in the next few years. This
yet only 41% said they currently have a leaves close to 40% who said this goal
job that provides good quality, afford- is quite a ways off.
able health care.

22

• Starting a family is another area where worktrends
this group is split in this manner. Over-
all, 32% said they have already started $28,000 to $32,000. Many more gradu-
a family and another 29% thought they ates were satisfied with their current job
will be able to do so in the next few when compared to their first job and more
years. reported thinking of their job as being on a
career path.
• Home ownership is the most elusive
goal, with 45% saying that is at least a However, getting a college education has
number of years off. put many graduates in debt. Over half the
sample reported that they owed money to
CONCLUSION pay off their college education when they
graduated. The median amount owed was
Overall, about three-fourths of college $20,000. Although there was no difference
graduates reported having at least one between those who graduated before and
full-time job since graduation. The median during the recession, there were some
salary earned by these graduates was important differences between groups. The
$28,000, with differences between groups. most alarming is that those attending grad-
Those who graduated in the years 2006 uate school already owe more ($30,000)
and 2007 earned slightly more on aver- than those who are not attending graduate
age ($30,000) than those who graduated school ($20,000). Graduates are struggling
in 2009, 2010, and 2011 after the start of to pay off this debt as well. Nearly a quarter
the Great Recession ($27,000). Doing an have not been able to pay any of it off.
internship helped graduates increase their
starting salary. Those who did an intern- The debt that they owe to pay off their col-
ship earned $30,000 compared to $26,000 lege education has affected the decisions
for those who did not. Many graduates, these graduates make about their lifestyle.
however, were disappointed with the quality More than a quarter chose to live with their
of their first job. Only 4 in 10 reported that parents because of the debt that they owe.
their job required a four-year degree and Likewise, about a quarter took a job they
only 2 in 10 saw their first job as being on were not enthusiastic about so they could
their career path. pay down their loans and put off furthering
their education. In addition, many — over
Although many have had a full-time job half — received financial help from their
since graduation, only half the sample was parents, often for basic needs such as food
employed full time at the time of the survey. (22%) and housing (30%).
Just over a quarter were working part time
and nearly one in five were attending gradu- In addition to having debt, graduates were
ate school to further their education. also uncertain about their preparation. Half
of the sample reported that they felt less
The current jobs of these graduates look prepared to enter the workforce than the
slightly better when compared to their first generation before them, and almost two-
jobs. The median salary increased from thirds felt they will need to get more edu-
cation. Those who did an internship while
in college felt more prepared to enter the
workforce.

23

Chasing the American Dream: Recent College Graduates and the Great Recession
Many graduates, nearly two-thirds, reported
that they would have done something dif-
ferently in college if they had to do it over.
Almost 4 in 10 said they would have been
more careful when selecting their major.
When asked which major they would have
chosen instead, 40% of the sample said
they would have chosen a professional ma-
jor, like education, nursing, or social work.
Lastly, college graduates are unsure about
their ability to move up. Only one-fifth
believed that their generation will be more
successful than the one that came before
them. Well over half said they will be less
successful. This finding may be explained
by the large number of graduates who are
still dependent on their family to help them
meet their financial obligations, especially
those who graduated in the recession era.
Although college graduates are fairly opti-
mistic about their future, about 4 in 10 still
believed that having a job where they earn
enough to have a comfortable life is quite a
ways off.

24

worktrends

Endnotes

1. The 2008 graduating students have been removed from all salary calculations.

2. Ibid.

3. Ibid.

4. Totals will not add to 100% as multiple answers were allowed.

25

Chasing the American Dream: Recent College Graduates and the Great Recession

APPENDIX A. tion for accessing surveys online, and are
METHODOLOGY sent emails throughout each month inviting
them to participate in research.

The latest Heldrich Center Work Trends All surveys are subject to sampling error,
survey, Chasing the American Dream: which is the expected probable difference
Recent College Graduates and the Great between interviewing everyone in a popula-
Recession, is a follow-up to Unfulfilled tion versus a scientific sampling drawn from
Expectations: Recent College Graduates that population. With a sample size of 444
Struggle in a Troubled Economy, a survey respondents, the sampling error is approxi-
of college students conducted 12 months mately +/- 5%, at a 95% confidence inter-
ago. That survey was conducted with a val. Thus, if 50% of respondents say they
national probability sample of 571 U.S. resi- have financial debt other than mortgage,
dents between the ages of 22 and 29 who rent, or student loans, one would be 95%
graduated with a four-year college degree sure that the true figure would be between
between 2006 and 2010. For this survey, 45% and 55% had all U.S. residents age 22
we successfully re-interviewed 315 of the to 29 who graduated with a four-year col-
original respondents, and added a cohort of lege degree between 2006 and 2010 been
129 new respondents who graduated from interviewed, rather than just a sample.
a four-year college in 2011. The current
survey was fielded between March 21 and Sampling error increases as the sample size
April 2, 2012. decreases, so statements based on vari-
ous population subgroups, such as sepa-
The sampling and data collection were con- rate figures reported for women or men or
ducted for the Heldrich Center by Knowl- recent college graduates who are currently
edge Networks, a GfK Company, located in employed, are subject to more error than
Palo Alto, California. Knowledge Networks, are statements based on the total sample.
a GfK Company has a propriety web- Sampling error does not take into account
enabled KnowledgePanel®, a probability- other sources of variation inherent in pub-
based panel designed to be representative lic opinion studies, such as non-response,
of the U.S. population. Initially, participants question wording, or contextual effects.
are chosen scientifically by a random selec-
tion of telephone numbers and residential The survey was weighted according to
addresses. Persons in selected households 2012 Current Population Survey bench-
are then invited by telephone or by mail marks for demographic information. Ad-
to participate in the panel. For those who ditionally, weighting, including adjustments
agree to participate, but do not already for non-response so that differences in find-
have Internet access, Knowledge Net- ings from one year to the next, were not a
works, a GfK Company provides at no cost function of who was and was not success-
a laptop and an Internet Service Provider fully re-interviewed. Weighting was also
connection. People who already have com- applied so that each year was treated as
puters and Internet service are permitted equal to all the others. For example, each
to participate using their own equipment. of the years 2006 to 2011 was weighted
Panelists then receive unique login informa- to be one-sixth of the sample, to adjust

26

worktrends

for variation in the sample in year-to-year
yields of respondents when there should be
no expected year-to-year differences in the
underlying population. The demographic
variables included: gender, age catego-
ries within the overall parameters of 21 to
29, race and ethnicity, geographic region
(Northeast, Midwest, South, and West), and
metropolitan area. In practice, these adjust-
ments and weights also bring with them a
design effect that increases the estimated
sampling error. Knowledge Network’s esti-
mate of the design effect in this case is 2.0.

27

Chasing the American Dream: Recent College Graduates and the Great Recession

Appendix B. Topline Survey Results

Knowledge Networks/online
Field dates: March 21 to April 2, 2012
N = 444 - Total College
N = 315 - College Returning Panel
N = 129 - College 2011 Graduate
Percentage totals may not equal 100% due to rounding.
* = less than 1% reporting
EXPLANATION OF GROUPS USED IN THIS TOPLINE:
ALL RESPONDENTS: We combined the responses from Time 1 and Time 2 to represent the
most recent information provided from each respondent. For many of the factual questions,
re-interviewed respondents were not asked the question again in Wave 2.
TOTAL: Total represents the total information at Time 2. This category is used when a re-
spondent’s answer may have changed between Time 1 and Time 2. For example, a respon-
dent’s current job may have changed and, therefore, his/her answers may be different. This
category is also used for new questions added to the questionnaire.

28

worktrends

I. COLLEGE GRADUATES COLLEGE EXPERIENCE (CE)

[ASK ALL COLLEGE GRADUATES (GROUP=1 OR 2)]

[DISPLAY, ON THE SAME SCREEN WITH CE1]
The first set of questions asks about your experiences while you were in college.

[TEXT BOX, SMALL]
CE1. What college or university did you graduate from? ________________________

[SP, Group=2]
CE2. Is that college:

Public All Respondents
Private 68%
33%

[SP, Group=2] All Respondents
CE4. Did you begin your studies at a community college? 32%
68%
Yes
No

[SP, Group=2]
CE5 About how many students attended the college or university from which you
graduated?

2,000 or less All Respondents
2,001 - 5,000 10%
5,001 - 10,000 20%
10,001 - 20,000 19%
More than 20,000 19%
32%

29

Chasing the American Dream: Recent College Graduates and the Great Recession

[SP]
CE6. How would you categorize the major you chose? Was it…

in the fields of math, science, engineering, or technology Total
a social science, like psychology, sociology, economics, or political science 26%
a humanities, like history, art, English, or a foreign language 16%
a business, like finance or accounting 17%
a professional major, like communications, education, nursing, or social work 18%
23%

[SP]
CE7. Which, if any, of these things did you seriously consider when selecting your
major?

Job opportunities in the field Total
An average salary in that field 39%
The ability to balance work and family 8%
A starting salary in that field 10%
Prepare me for graduate or professional education 3%
None 15%
25%

[SP]
CE8. Did you do an internship for any reason (pay, credit, just for the experience)?

Yes, for credit Total
Yes, for pay 29%
No 21%
50%
[SP, ASK IF CE8 ‘YES’ (CE8=1 OR 2)]
CE9. How many internships did you do while in college?
N=235

One Total
Two 56%
Three 29%
Four 10%
Five or More 2%
3%

30

worktrends

[MP]
CE10. How did you finance your college costs? Please check all that apply.

Loan from your parents or other relatives that you’re paying back Total
Loan from other source, such as a student loan from the government 8%
Personal work or savings 56%
Parents/relatives paid 41%
Scholarship from the college or other source 47%
Other 55%
6%

[NUMBER BOXES FOR EACH ANSWER SELECTED IN CE10 THAT ADDED TOGETHER
COME TO 100%. PROMPT IF DOESN’T ADD UP TO 100]
[SHOW “%” FOLLOWING THE BOXES]
[ONLY SHOW IF MORE THAN ONE ANSWER SELECTED IN CE10]

CE10A. Please tell us what percent of your funding came from each of the sources
listed below. Just your best guess is fine.
*** Percentage reported is the mean***

Loan from your parents or other relatives that you’re paying back Total
Loan from other source, such as a student loan from the government 19%
Personal work or savings 49%
Parents/relatives paid 20%
Scholarship from the college or other source 43%
Other 36%
49%

[SP]
CE11. Did you owe money to pay off the costs of your education at the time you
graduated?

Total
Yes 55%
No 45%

31

Chasing the American Dream: Recent College Graduates and the Great Recession

[SP, ASK IF GROUP=2 & IF CE11=1]
[WITH NUMBER BOX, RANGE: 0-999]

CE12. About how much did you owe to pay off your college loans when you gradu-
ated? If you’re unsure, just give us your best guess. Please do not use a range.
ALL RESPONDENTS
MEAN: $29,000
MEDIAN: $20,000

[SP, CE11=1]
CE13. About how much of this debt have you paid off so far?
N=253

All of it Total
Three-quarters 13%
Half 5%
One-quarter 9%
None 46%
[MP, CE11=1] 28%

CE14. [IF CE13= 2, 3, 4, 5, OR REFUSED: Because of the money you owe to pay off
your college education, have you done any of the following?] [IF CE13=1: Because of
the money you owed to pay off your college education, did you do any of the follow-
ing?] Please check all that apply.
N=253

Took a job you weren’t enthusiastic about because the salary Total
allowed you to pay your student loans back more quickly
25%
Moved in with your parents or family members to save money
Delayed marriage or another committed relationship 27%
Put off continuing your education 14%
Taken a part-time job to supplement your income 28%
Delayed a major purchase, such as a home or a car 18%
40%

32

worktrends

[SP, GROUP=2]
CE15. While enrolled in college, did you have a full- or part-time job at any time other
than the summer or between semesters?

No All Respondents
Yes, part time
Yes, full time or both full and part time 18%
46%
36%

[SP, ASK IF GROUP=2 & ANY ‘YES’ TO CE15 (CE15=2 OR 3)]
CE16. Were any of your full- or part-time jobs while you were in college related to
your academic major or field of study?
N=111

All Respondents

Yes 40%
No 60%

33

Chasing the American Dream: Recent College Graduates and the Great Recession

[GRID, SP]
CE17. For each question below, please mark your answer.

How well did your college placement or career guidance office Total
prepare you for job hunting – to look for a full-time job?
Extremely well 8%
Pretty well 27%
Not very well 24%
Not well at all 24%
16%
Not appropriate
How well did your college education prepare you to get your first full-time job? 16%
Extremely well 37%
Pretty well 23%
Not very well 10%
Not well at all 12%
Not appropriate
How well did your college education prepare you to 16%
be successful in your first full-time job? 46%
Extremely well 18%
Pretty well 5%
Not very well 14%
Not well at all
Not appropriate

[TEXT BOX, IF CE17_3=1]

CE17A. You mentioned that your college education prepared you well to be success-
ful in your first full-time job. Please briefly explain how you were well prepared.

[SP, GROUP=2]
CE18. Which of the following best describes what happened to you after graduating
college?

I found a career-related job more quickly than I had expected to All
I found a career-related job within a reasonable amount of time Respondents
It took me longer to find a career-related job than I had expected it to
I still have not found a career-related job 20%

26%
12%

41%

34

worktrends

[SP]
CE21. Do you think you can have the successful career you want with an undergradu-
ate degree, or will you need more education for that?

Undergraduate degree Total
More education 23%
I have already gone back to school 39%
Don’t know 26%
11%

[SP, CE21=2 OR 3]
CE22. [IF CE21=2: What type of further education will you need to pursue to have a
successful career?] [IF CE21=3: What type of further education did you pursue to
have a successful career?]
N=297

Graduate school Total
Professional school 75%
Certificate program 12%
Another bachelor’s degree 2%
Courses (to gain more technical skills) 3%
Other 3%
4%

35

Chasing the American Dream: Recent College Graduates and the Great Recession

[GRID, SP]
CE23. How well do you feel your college education contributed to your development
of each of the skills listed below?

Communicating verbally Total

Extremely well 29%
57%
Pretty well 11%
1%
Not very well
40%
Not well at all 50%
8%
Communicating in writing 1%
Extremely well
Pretty well 34%
Not very well 53%
Not well at all 11%
Working in teams 1%
Extremely well
Pretty well 31%
Not very well 46%
Not well at all 20%
Leadership skills 1%
Extremely well
Pretty well 53%
Not very well 40%
Not well at all 5%
Gathering information 0%
Extremely well
Pretty well 34%
Not very well 43%
Not well at all 18%
Quantitative skills, such as math and technlogy skills 2%
Extremely well
Pretty well
Not very well
Not well at all

36

worktrends

[GRID, SP]
CE23. How well do you feel your college education contributed to your development
of each of the skills listed below? (continued)

Critical thinking and problem solving Total
Extremely well
Pretty well 42%
Not very well 45%
Not well at all 10%
Skills related to time management and professionalism 1%
Extremely well
Pretty well 38%
Not very well 47%
Not well at all 13%

*

[MP]

CE24. Thinking back to when you were in college, is there anything you would have
done differently to help you be successful in today’s labor market/workplace?

Been more careful about selecting my major or chosen a different major Total
Would have taken more classes to prepare for a career 37%
Done more internships or worked part time 20%
Would not have gone to college 29%
Would have gone to a different college 3%
Would have started looking for work much sooner while still in college 14%
No 24%
30%

37

Chasing the American Dream: Recent College Graduates and the Great Recession

[SP, IF CE24=1]
CE24A. You just mentioned you would have been more careful about selecting your
major or chosen a different major in college, what type of major do you wish you
would have chosen instead?
N=127

A major in the field of math, science, engineering, or technology Total
A social science, like psychology, sociology, economics, or political science 29%
A humanities, like history, art, English, or a foreign language 7%
A business, like finance or accounting 4%
A professional major, like communications, education, nursing, or social work 17%
41%

[MP, IF CE24=2]

CE24B. You just mentioned that you would have taken more classes to prepare for a
career; what type of classes do you wish you had taken more of?
N=78

Math classes Total
Writing classes 21%
Computer/technology classes 24%
Speaking classes 56%
Business/finance classes 15%
Quantitative skill classes 36%
34%

38

worktrends

[DISPLAY, ON THE SAME SCREEN WITH CEMPSTAT]

The next set of questions will ask about your employment history.

[SP]
CEMPSTAT. Which of the following best describes your current job situation?

Unemployed and looking for work now Total
Unemployed but not looking for work now 6%
Working part time, not looking for full-time work 5%
Working part time, looking for full-time work 6%
Employed full time 6%
Attending graduate or professional school, not employed 51%
Attending graduate or professional school, employed part time or full time 6%
Military 14%
Self-employed 3%
Volunteer
*
3%

[TEXT BOX, ASK IF CEMPSTAT=1 OR 4]
CEMP1. Why do you think you have not found a full-time job?

[TEXT BOX , ASK IF CEMPSTAT=2 OR 3]
CEMP2. Why are you currently not looking for a full-time job?

[TEXT BOX, ASK IF CEMPSTAT=6 or 7]
CEMP3. Why did you decide to go to graduate or professional school?

39

Chasing the American Dream: Recent College Graduates and the Great Recession

II. COLLEGE GRADS CURRENT JOB (CJ)
[ASK IF CEMPSTAT= 3, 4, 5, 7, OR 9]

[IF CEMPSTAT=4 OR NEW RESPONDENTS (GROUP= 2) SKIP TO CJ1]
[SP]
CJSCREEN1. Have you been employed at the same place since March of last year?
[IF CJSCREEN1=2 OR REFUSED, SKIP TO CJ1]
[IF CJSCREEN1=1]
[SP]
CJSCREEN2. Have you been in the same job at this place since March of last year?
[IF CJSCREEN2=2, SKIP TO CJ1]
[IF CJSCREEN2=1 OR REFUSED, SKIP TO FJSCREEN]

[DISPLAY, ON THE SAME SCREEN WITH CJ1]
Please think about your CURRENT JOB when answering the following questions.

[SP]
CJ1. Please mark which statement best describes your situation.

I was unemployed before getting my current job All Respondents
I went right to my current job from another job 30%
This is my first job after graduation 54%
17%

[SP, IF CJ1=1]
CJ2. How long were you actively seeking employment before you found your current
job?

2 months or less All Respondents
3 to 4 months 21%
5 to 6 months 18%
7 months to 1 year 8%
1 to 2 years 8%
More than 2 years 16%
Not sure 2%
27%

40

worktrends

[SP]
CJ3. How closely related is this job to the field or major you received your college
degree in?

Very closely All Respondents
Somewhat closely 40%
Not very closely 22%
Not at all related 16%
23%

[SP] All Respondents
CJ4. Did this job require a four-year college degree? 50%
43%
Yes 7%
No
Don’t know All Respondents
75%
[SP] 25%
CJ5. Is this job:

Full time (at least 35 hours per week)
Part time

[SP] All Respondents
CJ6. Thinking about your current job are you: 32%
44%
Very satisfied 7%
Somewhat satisfied 12%
Neither satisfied nor dissatisfied 5%
Somewhat dissatisfied
Very dissatisfied 41

Chasing the American Dream: Recent College Graduates and the Great Recession

[SP]
CJ7. Are you paid:

A salary All Respondents
By the hour 46%
Self-employed/commission/stipend 52%
3%

[NUMBER BOX, RANGE: 0-999, IF CJ7=1]
CJ8. How much was your starting annual salary, in thousands?
For example: If your starting salary was $35,000, please enter 35 in the box.

ALL RESPONDENTS
MEAN: $35,500
MEDIAN: $32,000

[NUMBER BOX, RANGE: 0.00-999.00, IF CJ7=2]
[ALLOWS DECIMALS TO THE TENTH]
CJ8A. How much was your starting hourly rate?
TOTAL
MEAN: $13.40
MEDIAN: $10.23

[NUMBER BOX, RANGE: 0-999, IF CJ7=1]
CJ8B. How much is your current annual salary, in thousands?
For example: If your salary is $40,000, please enter 40 in the box.
TOTAL
MEAN: $38,550
MEDIAN: $40,000

[NUMBER BOX, RANGE: 0.00-999.00, IF CJ7=2]
[ALLOWS DECIMALS TO THE TENTH]
CJ8C. What is your current hourly rate?
TOTAL
MEAN: $17.00
MEDIAN: $12.00

Note: 2008 graduates not included in the above means and medians.

42

[SP] worktrends
CJ9. Do you think of your current job as:
Total
A career 30%
A stepping stone to a career 33%
Just a job (to get you by) 36%

[SP] All Respondents
CJ10. What was the main reason you took this job? 22%
12%
Good salary and benefits 6%
Location 25%
Close to family/friends 20%
Professional development/learning 5%
No other job offer/alternative 12%
To get some experience
Other

[MP]
CJ11. Did you have to accept any of the following in order to get this job?

Earn a LOT less than I originally expected to All Respondents
Take a job without healthcare benefits 24%
Work less favorable working hours 13%
Work below my level of education 16%
Accept a temporary job 27%
Accept a job outside my field of interest and education 6%
Move to another community 23%
Other 13%
None 2%
39%

43

Chasing the American Dream: Recent College Graduates and the Great Recession

[GRID, SP]

CJ12. Please indicate how satisfied you are with each of the following aspects of your
job:

Your total annual income All Respondents
Very satisfied
Somewhat satisfied 11%
Neither satisfied nor dissatisfied 33%
Somewhat dissatisfied 19%
Very dissatisfied 18%
Not applicable 17%
Health and medical coverage provided by your employer 3%
Very satisfied
Somewhat satisfied 29%
Neither satisfied nor dissatisfied 30%
Somewhat dissatisfied 5%
Very dissatisfied 10%
Not applicable 6%
Job responsibilities and tasks 19%
Very satisfied
Somewhat satisfied 21%
Neither satisfied nor dissatisfied 47%
Somewhat dissatisfied 14%
Very dissatisfied 6%
Not applicable 10%
Opportunity for advancement at your job 2%
Very satisfied
Somewhat satisfied 20%
Neither satisfied nor dissatisfied 28%
Somewhat dissatisfied 18%
Very dissatisfied 13%
Not applicable 11%
9%

44

worktrends

[GRID, SP]

CJ12. Please indicate how satisfied you are with each of the following aspects of your
job: (continued)

Opportunity to get more education/training from your employer All Respondents
Very satisfied
Somewhat satisfied 22%
Neither satisfied nor dissatisfied 32%
Somewhat dissatisfied 16%
Very dissatisfied 12%
Not applicable 12%
7%

Progress toward your career goals Total
Very satisfied
Somewhat satisfied 17%
Neither satisfied nor dissatisfied 35%
Somewhat dissatisfied 19%
Very dissatisfied 7%
Not applicable 17%
***THIS QUESTION WAS ONLY ASKED IN WAVE 2*** 6%

45

Chasing the American Dream: Recent College Graduates and the Great Recession

II. COLLEGE GRADS FIRST JOB (FJ)
[ASK GROUP=1,2]
[PROGRAMMING NOTE: PLEASE NOTE THAT FJ9 IN THIS SQUENCE IS ASKED OF
EVERYONE REGARDLESS OF SCREENING OUTCOME]

[SP, PROMPT]
FJ SCREEN. [IF CEMPSTAT NE 1, 2: Have you had at least one FULL-TIME or PART-
TIME JOB other than your current job since you graduated college?] [IF CEMP-
STAT=1, 2: Have you had at least one FULL-TIME or PART-TIME job since you gradu-
ated college?]
[IF FJSCREEN=3 OR REFUSED, SKIP TO FJ9]
[IF GROUP=1 AND FJSCREEN=1 SKIP TO FJ9]

[DISPLAY, ON THE SAME SCREEN WITH FJ1]
To answer the next set of questions, please think back to the first FULL- OR PART-
TIME job you held after graduating from COLLEGE.

[SP]
FJ1. From the time of graduation, how long were you actively seeking employment
before you found your first job?

Got the job while still in college All Respondents
2 months or less 44%
3 to 6 months 26%
7 months to 1 year 13%
1 year to 2 years 5%
More than 2 years 6%
Not sure 2%
4%

[SP]
FJ2. How closely related was this job to the field or major you received your college
degree in?

Very closely All Respondents
Somewhat closely 39%
Not very closely 26%
Not at all related 11%
24%

46

worktrends

[SP]
FJ3. Did the employer require people applying to have a four-year college degree?

Yes All Respondents
No 42%
Don’t know 52%
6%

[SP] All Respondents
FJ4. Was this job: 28%
71%
Temporary
Permanent

[SP] All Respondents
FJ5. How long did you work for that first employer? 11%
12%
Less than 6 months 15%
6 months to under 1 year 27%
1 year to under 2 years 34%
2 years or more
Still work there All Respondents
[SP] 21%
FJ6. Thinking about your first job, were you: 43%
12%
Very satisfied 12%
Somewhat satisfied 11%
Neither satisfied nor dissatisfied
Somewhat dissatisfied 47
Very dissatisfied

Chasing the American Dream: Recent College Graduates and the Great Recession

[SP]
FJ7. Were you paid:

A salary All Respondents
By the hour 37%
Self-employed/commission/stipend 59%
4%

[IF FJ7=1]
[NUMBER BOX, RANGE: 0-999]
FJ8A. How much was your annual starting salary, in thousands?
For example: If your starting salary was $35,000, please enter 35 in the box.
ALL RESPONDENTS
MEAN: $32,000
MEDIAN: $28,000

[IF FJ7=2]
[NUMBER BOX, RANGE: 0.00-999.00]
[ALLOWS DECIMALS TO THE TENTH]
FJ8B. How much was your starting hourly rate?
TOTAL
MEAN: $11.20
MEDIAN: $10.00

Note: 2008 graduates not included in the above means and medians.

[SP]
FJ9. Was your starting salary what you expected it to be when you graduated from
college?

Yes Total
No, my salary was lower 37%
No, my salary was higher 54%
7%

48

worktrends

[IF FJSCREEN=3 OR REFUSED, OR (FJSCREEN=1 AND GROUP=1) SKIP TO PA1]
[SP]

FJ10. Did you think of your first job as:

A career All Respondents
A stepping stone to a career 22%
Just a job to get you by 36%
41%

[SP] All Respondents
FJ11. What was the main reason you left this job? 10%
5%
Didn’t like the work 4%
Pay and benefits were too low 24%
Didn’t like my boss/people who worked there *
Found a better job 7%
Company closed or went out of business 1%
Was laid off 9%
Was fired 17%
Went back to school 22%
Moved to another location
Other

49