The document discusses the skills gap between what employers want in recent graduates and what they receive. It notes that almost half of recent graduates are underemployed, with rates over 60% for some majors like criminal justice. Employers say skills gaps are a leading cause of entry-level job vacancies and that the skills they seek, like grit and collaboration, have little to do with traditional academic knowledge. In response, colleges, employers, and third parties are developing innovative, hands-on solutions like experiential learning programs, applied capstone projects, and funded internships to better prepare students for the workplace.

1. What Employers Want Most
and Get Least from Grads
SXSWedu Session Submission

2. What you need to know
• Almost half of recent grads are underemployed – over
60% for some majors
• Yet, employers say skills gaps are a leading cause of
entry-level vacancies
• The skills employers want most have very little to do with
knowledge acquisition
• Colleges, employers, and third parties are responding
with innovative, hands-on solutions

3. Almost half of recent grads are
underemployed
Source: Are Recent College Graduates Finding Good Jobs? Jaison R. Abel, Richard Deitz, and Yaqin Su.
Federal Reserve Bank of New York in Current Issues in Economics and Finance, Volume 20, Issue 1, 2014.
The underemployment
rate of recent grads
was 44% in 2012, up
from 34% in 2001

4. Underemployment varies significantly
by major
Source: Are Recent College Graduates Finding Good Jobs? Jaison R.
Abel, Richard Deitz, and Yaqin Su. Federal Reserve Bank of New York in
Current Issues in Economics and Finance, Volume 20, Issue 1, 2014.
62.4%
60.0%
57.6%
54.5%
52.5%
52.1%
51.5%
50.3%
50.0%
49.5%
Criminal Justice
Business Management &
Administration
Health Care Administration
General Studies
Sociology
English Language & Literature
Graphic Design
Liberal Arts
Education
Psychology
Top self-reported underemployed
majors
Source: PayScale.com, 2014

5. Where are the underemployed
working?
Source: PayScale.com, 2014
87%
78%
78%
77%
76%
76%
73%
73%
72%
71%
71%
70%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Patient Services Representative
Nanny
Retail Sales Associate
Cashier
Teacher Assistant
Daycare Teacher
Data Entry Operator
Sales Associate
Assistant Property Manager
Warehouse Worker
Personal Assistant
Orderly
Jobs with the highest percent of self-reported
underemployment
Median pay
$29.5k
$26.7k
$20.9k
$18.0k
$21.3k
$21.5k
$25.6k
$21.5k
$21.7k
$36.5k
$26.4k
$33.2k

6. Where do employers wish they were
working?
Source: PayScale.com, 2014
6%
7%
10% 10%
15%
18% 18%
22%
0%
5%
10%
15%
20%
25%
Marketing Finance Customer Service Executive Level Sales Engineering Management IT
What kind of positions do employers have a hard time filling?

7. Employers blame skills gaps for vacancies
and would pay more for the right talent
Source: McKinsey & Company, “Education to Employment: Designing a System That Works,”
2013

8. Educators, employers, and students disagree on
how well grads are being prepared for work
Source: McKinsey & Company, “Education to Employment: Designing a System That Works,”
2013

9. The skills employers want most have very
little to do with knowledge acquisition
Source: McKinsey & Company, “Education to
Employment: Designing a System That Works,” 2013
The Koru5 Competencies – what
employers say distinguishes early-
career hires:
1. Grit: Is tenacious and resilient in
fast-paced, ambiguous
environments
2. Business Impact: Communicates
effectively and collaborates with
diverse teams
3. Rigor: Prioritizes time and actions
to drive business value
4. Professionalism: Is authentic and
confident across business settings
5. Ownership: Takes initiative in
service of others
Source: Koru employer interviews

10. Colleges, employers, and third parties are
responding with innovative, hands-on solutions
Source: McKinsey & Company, “Education to
Employment: Designing a System That Works,” 2013
Strategies to provide students
applied learning opportunities:
1. Experiential and service learning
(e.g., study abroad)
2. Applied capstone projects
3. Undergraduate research (e.g.,
College of Wooster)
4. Bridge programs (e.g., Koru, Tuck
Business Bridge, Coro Fellowship)
5. Funded internship programs (e.g.,
Connecticut College, Mount
Holyoke College)
Source: Expanded from AAC&U’s high impact
practices