Statistics show degrees no guarantee of related employment

A competitive job market and rising unemployment are forcing university graduates to work in unrelated areas to their degrees.

Recent Stats NZ data showed unemployment among 15-24-year-olds had reached 16.5 per cent, three times the national average of 5.4 per cent.

Amiel Gillego, who graduated from AUT in 2024, works as a housekeeper at a hotel due to the inaccessible job market.

“I graduated with a degree in creative technologies, and I thought I would go straight to an entry-level job, but that is not what happened,” he said.

Gillego said he was often denied a job related to his course, even after completing an internship.

“It is exhausting, really, because I thought a good portfolio and internship would help me get work, but turns out it wasn’t enough.”

Because of this, Gillego continued living with his parents because his current income is not enough to support himself.

“I wanted to live on my own, but I know I would not be able to save some money because paying for groceries, utilities, rent, and other things would take most of my income,” he said.

Economist Shamubeel Eaqub said Gillego’s experience reflected a growing trend in which young adults were delaying independence due to rising living costs.

“The fastest-growing family type over the past decade has been families with adult children at home . . . many [graduates] stay because they cannot afford to leave the parental home,” he said.

Eaqub said graduates were struggling to enter their chosen field due to increased market competition.

“When the economy is weak, more experienced individuals compete for the same jobs.

“By the time the recovery comes, they may be competing with the next cohort of graduates.”

Eaqub said due to job pressures and the rising cost of living, graduates may need to pursue further study, travel, or seek opportunities overseas.

Nineteen-year-old police recruit Stephen Wesley said finding even part-time jobs was becoming harder.

“It is very bad. I have been sending my resumé to lots of entry-level jobs like retail, warehouse assisting, and even bartending, but I still cannot get in,” he said.

Wesley said he was surprised graduates were also applying for the same jobs he was.

“I thought they [graduates] would be applying for professional jobs, like white collar, but turns out they are in the same boat as me, just trying to find work,” he said.

AUT professor of finance Aaron Gilbert said graduates were facing this rise in long-term financial consequences through unemployment.

“Without stable employment, many are effectively stuck . . . unable to build independence or progress toward major life goals like homeownership or starting a family,” he said.

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AI was not used in the creation of this story.