Degree Holders Working and Not Working

Degree Holders Working and Not Working   


In the profit focused business world today, most people consider skills more significant than the qualifications of an individual. Such an environment calls for aggressiveness when seeking a job because the few ones are taken by people who have the skills and know how to network. It is not surprising to find people holding a degree but not working because getting a job is largely dependent on skill development and marketing of those skills. That is why the relationship between degree holders in active employment and those who are not working yet have a degree is significant in unearthing the labor market relations. 

Problem Statement

A key concept considered when analyzing the economic situation of a country is the labor market and the rate at which jobs are created. This is easily depicted through the number of people with certificates from institutions of higher learning absorbed in the working class (Beaudry, Doms & Lewis, 2006). The society today is marred with dereliction to the extent that even with qualifications and skills, you have to know someone to obtain a job. In such a society, it becomes immensely important for a student in an institution of higher learning to understand the need of networking (Beaudry et al., 2006). 

Purpose Statement

The purpose of this paper is to show the necessity of understanding the labor market and networking in individuals who seek to get employment in future. 

Research Questions and Hypothesis

Is the society today changing the way people access jobs?

Are skills and qualification sufficient in seeking a job?

Does one need to network in order to secure a job today?

Is networking the main reason why there are people with degrees in the job market who work and some who are not engaged in any form of employment?


Skills and qualification are important when seeking a job, but a job seeker needs to start networking early because people employ others who they know. 

Significance of Topic

An analysis of the labor market is highly significant as it helps the entrees understand the concept and necessity of networking. In a changing environment, it is necessary to give everyone a chance to grow. Using this knowledge, the new entrants will be aware and thus use networking as a way of obtaining promotions. The idea here is to enable everyone a chance to remain productive. In this way, even the society is in a position to grow and develop economically. 

Limitations of Study

The idea that the workforce today is composed of people who have known each other before is almost synonymous to an accusation of nepotism. As a result, this is a highly sensitive topic that questions the integrity of most workplaces. This is one of the main forms of limitation as a suggestion that people only employ those who they know may deter participants taking part in the study. Another limitation may be finances as the conclusive remarks have to refer to a wide range of organizations. The collection of data from such organizations is not only tiring, it is also daunting. The other problem is that nobody wants to be associated with an organization that employs on basis of relation rather than competence. Keeping secrets may prevent the successful completion of the research. 

Addressing Gaps in Knowledge

The labor market is erratic, characterized with ever changing needs and requirements. Initially, a good education was sufficient in getting employment. As population increased, there was a lot of competition and experience became a necessary skill. However, the labor market is even more competitive today prompting people to use any means possible to obtain jobs. Romer (2006) confirms that a lot of research focuses on the way people pursue education further to increase their competitiveness in the labor market. However, this endeavor only helps to some extent. Aside from using the excuse of a flooded market, there are no researches that show the way people only employ those they know. Even with a good reference, an employer still wants to have a sort of personal relationship with someone who knows the employee. This research will help in explaining the issue of giving employment based on personal knowledge and some solutions to the same. 

Relevant Theory 

One of the most applicable theories for this study is Parson’s theory. This theory explains that jobs need to focus on talents, skills and personalities. This theory can be used to show that going to school and obtaining hands-on skills would not be sufficient in the labor market today (Borjas, 2006). Parson’s explains that it is important to have knowledge of the jobs and labor market prior to engaging in any course or training. According to Romer (2006), rational and objective judgment of the job market will help those seeking higher education understand the needs of the job market. Through this, it becomes easy for them to make suitable decisions. In addition to making the right decision, seeking knowledge is na opportunity to network and seek mentors. 


Beaudry, P., Doms, M., & Lewis, E. G. (2006). Endogenous Skill Bias in Technology
Adoption: City-Level Evidence from the IT Revolution. Federal Reserve Bank of San
Francisco Working Paper No. 06-24. 

Borjas, G. J. (2006). Native Internal Migration and the Labor Market Impact of Immigration.
Journal of Human Resources 41 (2), 221-258. 

Granovetter, M. S. (1995). Getting a job: A study of contacts and careers. Chicago: University of Chicago Press. 

Romer, D. (2006). Advanced Macroeconomics. New York: McGraw-Hill