According to a study by the Rockefeller Foundation and Edelman Intelligence, employers are recruiting and hiring inefficiently.

Despite only a third of Americans aged 25 to 34 graduating from college, 70 percent of the employers surveyed said that they screen applicants’ resumes for bachelor’s degrees – even for entry-level positions. Another 40 percent of companies said that high employee turnover resulted from employees feeling overqualified for their jobs.

College degrees are now a “blunt proxy” for ability, as employers believe they are indicative of soft skills – communication, dedication, etc. Employers have also been found to “up-credential” job requirements for open positions in populated areas and university towns as a way to control the number of applicants.

These practices exacerbate labor shortages as potential employees without college degrees are overlooked and younger employees with degrees are less comfortable job hopping. 

To read the full story in The Wall Street Journal, click here.