Higher Education and Labor Market Outcomes: Investigating the Rise of Educated Unemployment

Abstract

This paper investigates the relationship between higher education and labor market outcomes, specifically addressing the growing trend of educated unemployment. Utilizing a combination of statistical analysis, surveys, and econometric models, the study examines how factors such as education level, employment status, and skills mismatch influence unemployment rates among recent graduates. The descriptive and econometric results reveal a complex relationship, where higher education does not necessarily guarantee better employment opportunities, and a significant skills mismatch contributes to labor market inefficiencies. The findings are compared with existing literature, highlighting both consistencies and new insights into the dynamics between education and employment. The study provides valuable implications for policymakers, educational institutions, and employer’s interventions to align educational programs with labor market demands. Finally, recommendations for future research include expanding the focus to specific industries and conducting longitudinal studies to better understand long-term employment outcomes.