College graduates expect $80K salaries but reality is far more sobering
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If you want to understand what’s broken in higher education in America, look no further than a single statistic.
According to a recent study, the average college student expects to earn $80,000 a year shortly after graduation. Is it real? The average starting salary is close to $56,000. This represents a 30% gap between expectation and reality before a graduate even receives their first paycheck.
And that’s not even the worst news.
Recent college graduates face an unemployment rate of roughly 5.6%, significantly higher than the national average. Even more concerning, more than 40 percent of recent graduates are underemployed and work in jobs that do not require a college degree. I own five businesses, and the assumption that graduates will make $80,000 a year for most students coming out of college is laughable at best.
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The anti-AI career path of more blue-collar jobs may be smarter for young people. (Handsome Bob/Getty Images)
For decades, America has sold young people a simple formula.
- Go to university.
- Get a degree.
- Get a good job.
- Build a wonderful life.
Unfortunately, this formula is starting to crack.
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The problem isn’t that college doesn’t have value. The problem is that while millions of students were told that a degree was the destination, it was only a possible route.
Today, many graduates are discovering that a degree alone does not guarantee economic success. The labor market has changed significantly.
AI is eliminating some of the entry-level jobs that traditionally served as training grounds for new graduates. Companies that once hired an army of junior analysts, assistants, researchers, marketers, and programmers are increasingly using AI to automate parts of those roles.
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Employers now expect new hires to have practical skills, such as being able to actually communicate with someone, and often AI competency already exists. Nearly 35% of employers now expect entry-level candidates to have AI-related skills, but only a small percentage of students believe their university is adequately preparing them.
Think about how ridiculous this is.
Recent college graduates face an unemployment rate of roughly 5.6%, significantly higher than the national average.
Students often pay 2026 tuition to receive a curriculum that resembles 2016’s workforce.
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Meanwhile, many of the fastest-growing opportunities don’t necessarily require a traditional four-year degree. The anti-AI career path may actually be more lucrative than the college career path.
- Electricians.
- HVAC technicians.
- Automatic door experts.
- Commercial plumbers.
- Elevator installer and repairman.
- Welders.
- Power line experts.
Many of these careers can produce six-figure incomes with less debt, less time, and a more direct path to employment.
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That’s why I believe Generation Z may not have chosen the wrong university department.
Many may have chosen completely the wrong path.
Before the angry emails start pouring in, let me make this clear. Engineers, nurses, accountants, doctors, and many other professionals definitely need college and sometimes advanced degrees. Higher education remains a great investment when tied directly to a marketable skill.
But we’ve come to a point where parents and students have to ask a tougher question about business and life decisions.
“What do you want to study?” not.
The problem isn’t that college doesn’t have value. The problem is that while millions of students were told that a degree was the destination, it was only a possible route.
Instead, “What problem will someone pay you to solve?” Ask the AI!
That’s how the real world works.
Businesses don’t rent diplomas.
They hire problem solvers. They hire communicators. They hire people who can increase revenue.
was he fired? THIS IS WHY LOSING YOUR JOB MAY BE THE BEST BREAK OF YOUR LIFE.
Today’s graduates will likely hold many more jobs throughout their careers than previous generations, often in fields unrelated to their degree. My own daughter studied criminal justice in college and is now the COO of a concrete and hardscaping company. The traditional straight-line career path is disappearing. Adaptability becomes more valuable than credentials alone.
The biggest mistake young people can make is to believe that their diploma is a competitive advantage.
Mike Rowe, host of Discovery Channel’s “Dirty Jobs,” films an episode at Norcal Waste. “Dirty Jobs” grew out of a segment Rowe did for “Evening Magazine” about SF’s garbage collectors and is the most popular show on the Discovery Channel. (Photo: Liz Hafalia/The San Francisco Chronicle via Getty Images)
Not.
Competitive advantages; These are the abilities to communicate, sell, build relationships, leverage technology and create value.
These skills move across industries.
These skills survive economic crises.
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These skills survive the AI.
Students often pay 2026 tuition to receive a curriculum that resembles 2016’s workforce.
The class of 2026 is learning a difficult lesson that previous generations have not had to face so quickly.
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A degree can get you in the door. Maybe.
But in today’s economy, it’s what you can do after completing this process that determines how much you earn.
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