The Benefits of Starting College in a Recession
Many recent higher education graduates have found their situations to be similar to students during other financial crises of the past. But recently, students have had to deal with the aftermath of the Coronavirus outbreak and the ensuing economic complications. Many higher education graduates were forced to make tough choices because of the poor economy, but they persisted, and ultimately enjoyed the education benefits received during the recession.
People’s lives can be significantly and permanently impacted by a recession. The risk that there may not be many higher education benefits is one such area. Education benefits include increases in student enrollment in many places where the economy was struggling. But how do those who enroll for higher education during a recession fare after they reach the workforce? Since higher education graduates during a recession are different from those who studied during prosperous economic times, the answer to this question requires some closer examination. An economic slump may affect how people approach and see their studies, with significant repercussions for how they fare in the job market.
- 1 What is a Recession?
- 2 Education Benefits in a Recession
- 3 The Benefit of Business Education During a Recession
What is a Recession?
A decline in economic activity is referred to as a recession, which can also be defined as a reduction in GDP. Economic activity goes through decreases during a recession. A recession, according to economists at the National Bureau of Economic Research (NBER), is when the economy contracts from the height of the expansion that came before it to its lowest point.
Education Benefits in a Recession
1. Higher Income
In the UK and the US, going to college during a recession has greater education benefits and improves employment rates. In the UK, a three percentage-point increase in the unemployment rate at enrollment raised average male salaries by 1.7%. Thus, men who started college in 2010, when unemployment was 8%, will earn 1.7% more than those who started in 2007, when unemployment was 5%. There was also a favorable effect of the rate of unemployment at college entry on women’s future income. In a weak US economy, college freshmen earn a salary premium, and women outperform males here. Women who enter university during bad economic times in the US work more hours per week and more weeks per year, which boosts their annual earnings.
2. Option of Online Education
However, students who go through a recession tend to select more lucrative fields of study, including at Business Marketing schools, to gain the benefit of business education. Furthermore, more students opt for online education programs and this type of education benefits students by allowing them to enjoy uninterrupted study, learn valuable digital and technological skills and be prepared for a post-recession employment scenario.
3. Economic Hardship Leads to Harder Work
The academic performance of students can be investigated owing to available research data for the UK. The data compared those who enrolled during a recession to those who enrolled during prosperous economic times. It showed that students who enrolled during challenging financial times graduated with higher university grades and started earning higher wages. The increased effort of students during a recession leads to improved employment prospects. This is supported by findings that indicate that students entering college during a recession worry more about their prospects, and hence, work harder in school.
4. Impact on Policy
Cutting back on funding for education during a recession is unproductive and reduces education benefits. Instead, governments should enhance funding to accommodate the inevitable uptick in student enrolment during downturns and capitalize on the extra incentive and hard work of incoming students.
The Benefit of Business Education During a Recession
1. To Improve One’s Qualifications and Skill Sets
This is especially important for recent graduates or people who have lost their jobs as a result of the economic downturn. It is not a bad idea to turn away from work promotions and shift one’s focus to furthering their education and developing marketable skills. To pursue an executive or full-time MBA from business marketing schools during a recession, students will have to forego their pay (if they are working professionals). Nonetheless, a notable benefit of business education is advancing in one’s profession during a recession and investing in one’s skills while available jobs are scarce.
2. Building Relationships with Other Students at Business Marketing Schools
Whether a student is enrolled in an MBA program full-time or part-time, they will likely cross paths with diverse groups of fellow students from a variety of professional and personal backgrounds at their business marketing schools. Networking with other students at business marketing schools can help them gain insight into how other people in the corporate world might handle similar situations, as well as boost their confidence and social abilities. To relieve stress about the future in the workforce, students can consider investing in gaining new knowledge and experience, which is a benefit of business education.
3. Creating a Future-Oriented Profile
Even when economic downturns happen, there is a high probability that the market will turn positive while a student is finishing their MBA or another Business degree, opening up doors for employment immediately upon completing their course. Higher education benefits many working professionals who make use of a slow period in their careers by up-skilling themselves for the future.
4. Pause in Employment to Invest in Education
It is a common practice for companies to allow employees to take time off to pursue further education, such as an MBA, and enjoy higher education benefits with the expectation that they will return to the company after completing their studies. Having higher education graduates working in their companies is profitable for organizations and employees, who can demand a higher salary. Taking a sabbatical and becoming a higher education graduate can relieve one’s mind from the worry and burden of a recession. There are several advantages of getting a business degree during a slow economy. During a recession, investing in education benefits anyone and gives them the opportunity to improve both their career and personal development.
For more information on education benefits during a recession and how higher education graduates can be impacted positively by challenging economic times, contact 21K School for more guidance!
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