Are Degrees Losing Their Value ?

Based on the most recent Labour Force Survey data (2024–25), Pakistan is facing a worsening unemployment crisis, with the national unemployment rate rising to 7.1%, the highest in 21 years. Out of the total 5.9 million unemployed people, 4.6 million, or 77.5%, were literate. Nearly one million people with educational degrees were unemployed. The highest number of unemployed people was in the age group of 15 to 29 years, followed by the age group of 15 to 24 years. Other estimates present an even bleaker picture. The Population and Housing Census 2023 puts the unemployment rate at 22 percent, which means the youth find no space to work and prefer to leave the country if they find an opportunity.

A university degree is meant to be a clear marker of talent, potential and prospects. But in today's Pakistan, the prevalence of degrees and the abundance of degree-holders have resulted in the blurring of these markers, leaving both graduates and employers questioning the need and impact of degrees. Employers and graduates alike complain about skill gaps and families express frustration over the constant rise in tuition fees and the prevalent joblessness. Renowned sociologist, Prof. Randall Collins, in his famous book The Credential Society, described this phenomenon as “credential inflation”—as more people earn a degree or certain credibility, the degree or the credibility itself loses the signalling power. Consequently, employers keep raising the eligibility bar while frustration mounts among graduates and society alike.

A logical question here would be: why are degrees losing their value?