Is a university degree still worth it?

The excitement of entering higher education is giving way to doubts about whether the investment is truly worth it. With tuition fees skyrocketing and job prospects uncertain, it's time to ask: what exactly are we paying for?

Let's start with the costs. Universities have become financially autonomous, and the result has been a dramatic increase in tuition fees. In some cases, fees have risen as much as 40 times compared to when I was a student. This might be justified if the quality of education had improved proportionately, but the reality is far different. Graduates are emerging from these institutions burdened with debt and, all too often, unable to find jobs that align with their qualifications. They are forced to accept low-paying or unrelated work, if they can find work at all.

The Vietnam Chamber of Commerce and Industry (VCCI) reported that 60% of graduates were working in fields unrelated to their studies. This troubling statistic is not just a number; it's a reflection of a systemic failure that has only worsened in recent years. The disconnect between education and employment has grown to alarming proportions, and it's worth examining why.

First and foremost, universities in Vietnam often operate like businesses, with little accountability for the success of their graduates. Students frequently choose popular majors based on trends or family advice, rather than the quality of education or market demand. In contrast, developed countries regularly assess the employability of their graduates. Take Australia, for example, where the Quality Index for Learning and Teaching (QILT) surveys employment rates and training quality across different majors and universities. This is not just a bureaucratic exercise; it is a critical tool for aligning education with the needs of the job market.

Secondly, while the quality of education has declined, job requirements have soared. Universities are admitting students en-masse, driven by economic pressures rather than labor market needs. Admission standards have been lowered, and the new grading systems allow students to pass with just 40% of the required knowledge. This grade inflation, coupled with the increasing complexity of today’s jobs, means that only a few elite students with work experience or connections are quickly hired. The rest are left in the cold, jobless and underqualified.

The curricula in Vietnamese universities are also out of step with employer demands. Even in developed countries, universities struggle to keep pace with the fast-changing job market. Australian universities, for example, are undergoing reforms to include new subjects like artificial intelligence and sensors, which have only recently become relevant. Meanwhile, Vietnamese students are still burdened with a slew of subjects: soft skills, general law, sociology... that could be taught more effectively elsewhere. These are important areas of knowledge, but they are not what will get graduates hired in today’s competitive job market.

One glaring issue is the lack of employer involvement in shaping educational programs. In Australia, universities often have industry advisory boards that help ensure their programs meet market demands. These collaborations allow students to gain practical experience through internships, making them more employable upon graduation. This approach is sorely lacking in Vietnam, where many students graduate without the skills or experience needed to secure a job.

Then there’s the outdated educational philosophy that still permeates many Vietnamese universities. Some educators believe that university is merely a general training phase, with employers expected to provide further specialized training. But in today’s fast-paced job market, time is money. Employers are not inclined to spend years training new hires, they need graduates who can hit the ground running.

So, is a university degree still worth it? Despite the challenges, I believe it is, at least for now. In Vietnam, where self-study habits are generally low, a degree still holds significant value. Without one, career opportunities are often limited, and the chances of upward mobility diminish. But this is not a sustainable model.

From a personal perspective, there are many paths to success, and vocational training or entrepreneurship may be more viable for some. However, from a national perspective, the development of a high-quality workforce is essential for economic growth. A university degree remains a key component of that strategy, but only if our educational institutions are willing to adapt and evolve. It’s time for universities to stop operating like businesses and start fulfilling their role as engines of opportunity, innovation, and progress.

The stakes are high, and the future of our workforce, and our economy, depends on it.

*To Thuc is a lecturer at James Cook University in Australia.