A degree is not enough: The bitter awakening of young academics

Disillusioned. That’s how young people interviewed by the KURIER newspaper describe their feelings about the job market. And this sentiment is shared across the board – regardless of whether they are employed, unemployed, in training, have an academic degree, or a vocational qualification. The general consensus: Finding a job is virtually impossible; even good qualifications are no longer enough.

Uncertainty is growing, especially among the once-recession-proof academics. Unemployment in this group has risen by 15.4 percent compared to the previous year. By comparison, the increase is 1.1 percent for those with only compulsory education and 3.6 percent for those with vocational training.

For years, a university degree was considered the ultimate qualification – and now?

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Redundant Academics

“A degree doesn’t mean anything anymore,” a young man told the KURIER. He initially opted for a business degree (and even earned a master’s), only to find himself staring into a void afterward. “Nobody needs academics anymore.” That’s why he opted for an apprenticeship. Today, he works in a job that offers him “the best of both worlds”: practical experience and theoretical knowledge. He doesn’t want to reveal exactly what he does.

He’s not alone in his gloomy outlook, however. Similar frustration is evident in conversations with other young people. “I think degrees have lost their meaning,” says a young woman who dropped out of university and instead chose vocational training in the social sector. “Acquaintances with master’s degrees had to send out more than 50 applications before they found something in their field.”

The frustration is particularly pronounced among those who followed well-intentioned advice and chose fields of study whose graduates were considered highly sought after, such as computer science or other STEM subjects. “It’s often said that if you choose a niche subject, you shouldn’t be surprised by poor job prospects,” says another young woman who opted for a science-related field. When she finished her undergraduate studies, she found it difficult to find jobs. “Many then pursue a PhD because they can’t find employment – ​​and continuing to study is better than doing nothing.” She herself eventually changed industries.

This very situation prompted education expert Mario Derntl to write a commentary with the provocative title “Have We Overstudied Ourselves?” (as reported by the KURIER).

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Studying for the Wrong Place

“We’ve been spreading a false narrative: If you want to be successful in Austria, go to university. Then you’ll get a management position and a good salary,” says Derntl. That’s no longer true. People with bachelor’s degrees often can’t find suitable jobs, while companies are desperately searching for skilled workers.

This is also shown by the current Skilled Workforce Radar from the Institute for Research on Vocational Training in Business (ibw), commissioned by the Austrian Federal Economic Chamber. Despite the difficult economic climate, around 78 percent of companies are affected by the shortage of skilled workers. According to reports, Austria is short approximately 155,000 skilled workers (more information here). “We’re producing for the wrong market,” says Derntl.

This sentiment is echoed by business leaders. David Machanek, CEO of the automation company Pilz, reported at a panel discussion this week that he is finding it difficult to recruit technicians, even though they are currently in high demand in his industry. At the same time, his company has received around 300 applications for a single marketing position.

However, according to labor market expert Lukas Lehner, discarding one’s academic degree is not the right approach.

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The safest path

“The job market has worsened for university graduates – but only in relative terms,” ​​he says. “This needs to be put into perspective, as the increase is starting from a very low level. Unemployment among university graduates is traditionally lower than among people with other qualifications.” Therefore, even a small increase in absolute numbers can lead to a very high percentage increase. “Overall, the number of university graduates affected by unemployment remains significantly lower than the number of people without a university degree.”

At the same time, he acknowledges that there are initial signs of a deterioration. In the US, for example, declines in entry-level jobs are being observed, partly due to AI. Nevertheless, Lehner emphasizes: “With a university degree, you are still the most secure option.”

Career consultants Manuela Baierl and Thomas Gaar from coachfident are also convinced that a university degree pays off. “The world of work is changing so rapidly today that no one can seriously predict which professions will be in high demand in ten or fifteen years,” says Baierl.