With global economic uncertainty and the spread of artificial intelligence (AI) shrinking hiring, an analysis found that young people in the United Kingdom, the United States, and Europe are flocking to graduate school instead of jobs.
On the 28th, Bloomberg reported that amid the most severe hiring crunch in decades, master's programs are emerging as a "job-waiting strategy." According to GMAC (Graduate Management Admission Council), applications to U.S. law schools actually jumped 32% this year. On the European continent, three-quarters of management master's programs drew more applicants last year than the year before. That is a sharp rise from about half in 2023.
The situation is the same in the United Kingdom. According to the Office for National Statistics (ONS), taught postgraduate enrollments in the United Kingdom rebounded, rising 8%, and hiring of university lecturers is growing quickly, expanding the education market itself.
Bloomberg explained that this phenomenon is not a simple increase in academic demand but shows a structural hiring slump. In particular, the United Kingdom has seen hiring by corporations fall due to higher payroll taxes and a rising minimum wage, and as AI adoption spreads across services, entry-level jobs themselves are decreasing. As a result, youth unemployment hit its highest level since 2015, and more than 500,000 people gave up job hunting and moved into study, it was found.
Students, too, are choosing graduate school for jobs rather than scholarship. Degrees consolidated with traditional industries such as finance are gaining popularity, and programs that include internships and career support are emerging as key competitive elements. The same trend was confirmed across Europe, including France and the United Kingdom.
Cameron Western Edwards, 22, a political science major, said in an interview with Bloomberg that Edwards failed to land an internship at a historical tour company, adding, "If I fall short even at that level, it means the likelihood of full-time employment is low." Edwards said Edwards will enter a master's program in political communication this year. Lauren Amdor, 23, is set to begin a master's in international governance and diplomacy at Sciences Po in Aug. Amdor said a six-month internship and career mentoring by practitioner faculty were key deciding factors.
However, the problem is that such "credential inflation" does not mean guaranteed employment in the long run. In the United States, even a law degree may not guarantee a stable job. In fact, data from the National Association for Law Placement (NALP) show that full-time hiring at large U.S. law firms is already slowing.
Shaun Fitzpatrick, chief executive officer (CEO) of the global legal business at AI research platform LexisNexis, warned that U.S. legal hiring has already reached "peak legal." Fitzpatrick added, "There will be no increase in the number of jobs within law firms over the next few years."
Experts worried that if universities fuel excessive expectations, student dissatisfaction could grow. James Leipold, an adviser to the Law School Admission Council, said, "The fastest way students become dissatisfied is when they feel they were led to have the wrong expectations."