Is College Still Worth It? Gen Z And Millennials Are Losing Faith As AI Disrupts The Job Market

As tuition costs climb and artificial intelligence reshapes the workforce, a growing number of young Americans are questioning whether a college degree still offers a meaningful return on their investment. For Gen Z and millennials, the traditional value of higher education is under scrutiny — especially in an economy where degrees no longer guarantee job security or career growth.

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A Generational Divide in College Value

A recent survey by Indeed found that 51% of Gen Z professionals consider their college degree a waste of money, compared to 41% of millennials and just 20% of baby boomers. For many younger graduates, the cost of education, combined with student loan burdens and an uncertain job market, has made them question whether college was the right path.

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According to the Education Data Initiative, the average cost of a bachelor's degree has doubled over the past 25 years, now exceeding $38,000. Meanwhile, student loan debt in the U.S. is nearing $2 trillion. These financial strains are shifting how young professionals view their degrees: nearly four in 10 say student debt has slowed their career growth more than their diploma has helped it.

AI Adds to the Uncertainty

Artificial intelligence has introduced another layer of doubt for recent grads. About one-third of college-educated workers believe AI has already made their degree irrelevant, according to Indeed — a figure that climbs to 45% among Gen Zers.

Yet some experts argue this fear may be overstated. "AI is not going to take your job," Netflix co-CEO Ted Sarandos told The New York Times last year. "The person who uses AI well might take your job." 

Similarly, Kyle M.K., a career expert at Indeed, told Fortune that while some technical roles are more exposed to automation, areas like nursing and creative strategy remain relatively insulated.

The key, he says, is adaptability: "AI won't invalidate a solid education, but it will reward those who keep upgrading their toolkit."

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Degrees Without Distinction?

Even as more young people earn degrees, the job market doesn't always reflect that value. Researchers suggest the "college wage premium" — the extra income typically earned by degree holders — has plateaued. And with more graduates than ever before, competition for skilled jobs has intensified.

This shift may explain why 68% of Gen Zers say they could do their current job without a degree, compared to just 49% of baby boomers. Employers seem to agree — more than half of U.S. job postings on Indeed now omit education requirements entirely.

Beyond the Paycheck: Other Forms of Value

Despite skepticism about the financial return of college, some still find personal or professional value in the experience. Christine Cruzvergara of Handshake told Fortune that higher education helps students build networks, discover career paths, and develop long-term leadership and problem-solving skills.

Nico Maggioli, a design graduate from Syracuse University, echoed this sentiment. He told Indeed that the mindset he gained — learning how to think like a designer — matters more today than mastering specific technical skills, many of which AI can now handle.

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The Future: Skills Over School Names

Experts increasingly recommend that students and workers focus on building adaptable skills rather than chasing degrees for prestige alone. 

Francisco Marmolejo, higher education president at the Qatar Foundation, told Indeed, "A big advantage of generative AI is that educational institutions will have more time to prepare students on the humanistic side. More effective efforts can and should be dedicated to making sure that all students become competent in much more valued skills for the future of work, such as analytical skills, teamwork, and critical thinking.”

For Gen Z and younger generations, college may not be obsolete, but its value depends more than ever on how well it prepares graduates for a rapidly changing world.

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