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Wednesday, September 9, 2015

Study: Higher Education Leads to Lower Unemployment Rates and Higher Earning Potential

Higher Education could help job-seekers earn more money and have a lower chance of being unemployed, according to data from TriNet, a human resources service provider.

In the August report, TriNet SMBeat, the company examined data about how higher education impacts higher education. Report findings showed several distinct benefits to pursuing higher education, even if costs increase.

The median average earnings for college graduates were $23,764 higher in 2013 than the median earnings for people without a college degree, according to the report.

Using data from more than 9,000 of TriNet’s clients and the U.S. Bureau of Labor Statistics (BLS), the report found that employees with a master’s degree made a median salary of about $69,108 last year, $35,256 more than employees with high school diplomas made in 2013.

Having a college degree also helped increase people’s chances of being gainfully employed. Unemployment rates in 2013 decreased as education levels increased, according to the report.

High school graduates had an unemployment rate of 7.5%. People with a bachelor’s degree had an unemployment rate of 4%, people with a master’s degree had a 3.4% unemployment rate and those with a professional degree had a 2.3% unemployment rate.

Having a college degree may also help improve a person’s chances to find full-time work. The report showed that people with an associate’s degree or higher worked an average of 40 hours or more each week. High school graduates worked an average of 33.5 hours each week.

Though college costs are rising, the report concluded that getting a degree could be worth the cost.

“Based on this data, even facing increasing costs of higher education, there is a clear benefit in earnings potential for workers with a bachelor’s degree or higher, which may outweigh the risks of student loan debt.”