The Great Disinvestment – What Parents Need to Know About the College Career Services Crisis

Written by Sandra Buatti-Ramos, ACRW, CLMC, Founder, Chief Learning Architect, & Lead Coach

Sandra Buatti-Ramos defines the future of career strategy and career ecosystem design. As founder of Hyphen Innovation and Post-Traditional Careers, she architects research-driven, AI-powered frameworks that dismantle obsolete talent development models and unlock unstoppable potential for post-traditional professionals and organizations.

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The American higher education system, which was supposed to equip students for productive careers, now leaves an alarming share of college graduates without meaningful employment, and the ripple effects of this critical failure can stretch out for decades. Surveys ring alarm bells that shed light on the current crisis in college and university career services, only 36% of students find their campus career services helpful,[1] and more than half of all graduates are underemployed months after donning their caps.[2] Amid ballooning tuition bills and fees, parents must wonder whether the traditional career services office offers adequate preparation, or if they should consider taking on additional costs to protect their investment in their children's success.

Promising policy solutions and bolder curricula have yet to make their way into most institutions, and the results paint a grim picture of the realities facing those charged with supporting students' career development. The National Association of Colleges and Employers (NACE) reports, Inside Higher Ed surveys, and federal workforce data reveal a field in crisis, roughly one-third of college students never interact with the campus career office, and among the rest, appointment outcomes seldom meet students' expectations. Meanwhile, the financial stakes continue rising. Poor career guidance can cost students $400,000 to $800,000 in lifetime earnings through underemployment,[2] career pivots, and delayed career launches.[3][4] When the expected wage trajectory of college graduates is delayed or diverted, the adverse effects can compound, locking some graduates into low-wage paths over many years and exposing the supposed promise of a college education as a risky gamble.

The scope of institutional disinvestment in career services

The recently released Driving Toward a Degree 2025 report warns that looming budget cuts will directly erode the reach and impact of career services. Nearly 30% of institutions expect substantial reductions to student support budgets in the next three years, and because career offices are housed within that broader category, they will feel the squeeze alongside academic advising and financial aid counseling. The threat is sharpest at four-year public institutions, where 38% of administrators anticipate cuts, even though they serve the largest number of students nationally. This underinvestment by administrators is at odds with student priorities, as more than half of students (51%) say career support is critical to their decision to remain enrolled, yet only 24% of administrators rank it as a major retention factor. In short, at the very moment when career readiness is becoming the key measure of the value of the college experience, career centers are among the first to be sidelined by institutional budget decisions.[5]

For years, college career centers have been operating with crippling resource constraints that make effective, personalized student support nearly impossible. Many institutions cut their career services offices' capacity during recent years, with median staffing levels dropping from 7.5 to 6.3 full-time equivalent positions during the pandemic.[6] In addition to staff reductions, college career centers have faced significant budgetary pressures that directly translate into service quality problems.

These resource constraints in career centers translate into service quality issues. Only 36% of college students who have visited an office indicate they are satisfied with the services they have used, while just 32% rate the services as effective. Concerningly, in an age of skills-based hiring that emphasizes real-world experience, only 18% of college students receive help finding internships, despite this being one of the most impactful services career centers can provide.[1]

The impact of the institutional disinvestment crisis in college career services is evident in student outcomes data. Although colleges tout 85% graduate placement rates within six months, this figure may mask serious quality issues.[7] Approximately 40% of recent college graduates work in jobs that do not require college degrees,[8] and 52% remain underemployed one year after graduation.[2] Most troubling, 45% of graduates remain underemployed even 10 years later,[2] suggesting these are not temporary post-graduation adjustment periods but rather persistent career trajectory problems.

The financial consequences of inadequate career support are devastating

Poor career guidance can create financial consequences that compound throughout college graduates' lifetimes, with individual costs reaching hundreds of thousands of dollars. Federal Reserve research analyzing millions of workers over decades found that lifetime earnings are largely determined in the first decade of a career, making early career guidance decisions critically important.[3]

Delayed workforce entry is one consequence of inadequate college career support. Taking a gap year can result in approximately $90,000 in lost lifetime earnings due to delayed entry into the workforce and missed years of experience-based wage growth.[3] Those entering the job market during recessions experience significant earnings losses over their careers, with research showing substantial cumulative effects that can persist for over a decade.[4] The financial impacts of inadequate career support can persist throughout entire professional lifecycles.

Much like late entry, the inability to obtain sufficient employment upon or following graduation is another costly ramification of poor career support that can negatively influence students' careers and finances. Underemployed college graduates, those working in jobs that do not require a degree, earn little more than high school graduates, compared to 88% more for properly employed college graduates.[9] Moreover, the annual earnings gap of $20,000 between employed and underemployed college graduates compounds over time.[10] Those who begin working as underemployed are 3.5 times more likely to remain underemployed after 10 years,[2] creating a potential total lifetime penalty for persistently underemployed college graduates.

In addition to the effects of delayed workforce entry and underemployment, college graduates who lack adequate career guidance or support can also experience financial setbacks if they find they need to make career pivots in order to achieve career success. For those who need to acquire additional education or other qualifications suitable for their new career path, the costs can significantly impact their short-term financial situation.[11][12] These additional investments may not yield immediate benefits for graduates, as securing employment in a new field often takes time, further delaying the opportunity to regain lost income.[13]

Private career services offer superior outcomes but at an additional cost

Private career services have emerged as increasingly popular alternatives to traditional college career centers, offering distinctly different value propositions. Professional career coaches can cost upwards of $200 to $500 per hour.[14] These private coaching services can ultimately deliver superior results, which may offset the costs for parents who can afford to make the additional investment. Premium private services report up to 95% placement rates compared to the mixed outcomes of college career services.[15] The benefits of private career services extend beyond career coaching. For example, TopResume (2019) reports that candidates with expert-written resumes were perceived by recruiters as having 7% greater value compared to those with self-written resumes.

Professional resume writing services add additional costs to the career development process. However, they can be well worth the short-term financial investment. Research demonstrates that resume quality has measurable financial consequences, with error-laden resumes resulting in significantly lower interview rates and $7,633 less in starting salary offers on average.[16] The impact is particularly severe for candidates with minoritized identities, as Hispanic applicants face nearly three times the salary penalty for resume errors compared to White applicants, while Black applicants with error-free resumes still earn 6% less than White applicants with resumes containing errors.[16] Beyond basic error correction, resume quality shapes employer perceptions of candidate competence, professionalism, and work ethic.[16] Professional resume services, which typically cost far less than the potential salary loss, are therefore an attractive and financially sound decision, especially for underrepresented job seekers.

The service quality differences between college career centers and off-campus professional service providers can prove to be substantial. Private coaches and resume writers typically offer high customization with one-on-one coaching tailored to individual needs, flexible scheduling available 24/7, and industry-specific expertise. College career services, by contrast, tend to use standardized, traditional approaches designed for large student populations, face resource constraints that limit individual attention, and operate with generalist approaches across multiple career paths. However, college career centers remain highly cost-effective for parents and students, as they are typically included in tuition.

Modernization and technology gaps widen the effectiveness divide

Many college career centers have failed to modernize their approaches despite dramatic changes in the job market and hiring processes. Despite the broader shift toward coaching approaches in career services, a notable 35.7% of career services professionals still maintain job titles aligned with traditional counseling approaches, suggesting that more than one-third of the field continues to operate under older paradigms.[17] This substantial counseling legacy holdout, representing over one-third of the profession, indicates that many college career centers may still be operating with outdated models that emphasize problem-focused discussions rather than the forward-looking, capability-building approaches that better prepare students for today's competitive job market.

College career services also lack robust data collection and assessment systems. According to the National Association of Colleges and Employers (2023), only 45% of career centers collect demographic data on service usage, and approximately one-third of those actually report demographic data to their institutions. Without comprehensive student utilization and assessment data, career centers lack the capacity to identify gaps or accurately measure the effectiveness of different support services. The lack of data collection and reporting is not surprising when understood within the context of staffing declines and budget shrinkage. When college career center staff are contending with institutional disinvestment, they often have to choose between providing immediate support to students in need or prioritizing analytics. It would be difficult to make the argument that data management should come before students in need. Still, without the resources to track metrics effectively, college students end up losing out on evidence-based program improvements that could significantly enhance their post-graduation employment outcomes and career success.

Recent data confirms persistent systemic problems

Research from 2020-2024 documents continuing problems in college career services effectiveness. NACE's 2022 Student Survey found that while students using career services receive 1.24 job offers versus 1.0 for non-users, utilization remains problematically low.[18] Further, Inside Higher Ed's 2023 Student Voice Survey revealed that one-third of college students never interact with their campus career center.[1] Utilization can be impacted by a number of factors, but overall, the research indicates that college career services offices cannot fulfill the needs of their target customers, whether due to staffing and accessibility issues or other systemic challenges.

College career center staff are often placed between administrative decision-makers and the students and families they serve, and research indicates those on the front lines of student support are facing widespread mental health challenges. According to recent NACE surveys, career services professionals report significant levels of workplace stress and burnout, with mental health concerns being a persistent issue in the field.[19] These survey findings are indicative of systemic stress within college career services offices that likely affects service quality.

Pay disparities reveal institutional and career center priorities

A review of career center staff compensation data published by the National Association of Colleges and Employers (2020) reveals a fundamental structural issue within college career services. This salary structure creates an interesting dynamic in which the highest-paid professionals in higher education career services are furthest removed from direct student interaction. The staff earning $45,000–$50,000 are the ones typically providing the majority of direct student support (conducting appointments, leading workshops, hosting events with employers, etc.), while those earning $107,000+ are primarily in administrative leadership roles.[20]

This compensation trend mirrors broader higher education patterns in which student-facing roles (teaching, advising, coaching) often receive lower compensation than administrative positions, despite being the core mission-delivery functions. It may also contribute to experienced practitioners leaving direct service for administrative roles to achieve significant salary increases, potentially reducing the expertise available for student interactions.[20] Talented student-facing staff may also exit the field altogether to seek commensurate compensation, leaving institutions and the field of college career services more broadly without key knowledge and expertise.

Career center staff turnover can disrupt the continuity of career coaching relationships, forcing students to restart significant relationships with new career center staff who lack knowledge of their interests, goals, and previous discussions. According to research on faculty and staff turnover, frequent turnover "disrupts institutional continuity, impacting student learning experiences".[21] Students report conflicting advice between staff, lost documentation of career assessments, and the emotional burden of rebuilding trust with new advisors during time-sensitive job search periods.

Strategic recommendations for informed parents

Parents evaluating college career services should conduct thorough due diligence before assuming institutional support will adequately prepare their children for career success. Research specific colleges' staffing levels and service quality metrics, which should show evidence of adequate capacity and effectiveness. Ask about specialized support for first-generation students if applicable, and investigate satisfaction rates by demographic groups.

Consider the timing and financial implications of supplementing college career services with private alternatives. For recent graduates in competitive markets, strategic investments in resume services or interview coaching can provide significant returns. If you seek resume and interview preparation services outside of your child's college career center, consider using reputable AI-powered platforms like Rezi.ai, which use proprietary software to alleviate cognitive load while teaching users how to ethically and effectively tailor application materials and interview responses to specific job descriptions.

The most effective approach often combines both public and private resources, leveraging college career services for foundational support and alumni networking while strategically investing in private services for specialized needs or accelerated advancement goals. Given that quality career support shows increased returns on investment,[22] these additional support services may represent some of the most cost-effective educational expenditures parents can make.

Parents should also advocate for improved career services at their children's institutions. Contact career services directors to understand the specific support available, the approach to student support offered by the office, request assessment and outcome data to evaluate the quality of the programs offered, and encourage senior administrators to advocate for adequate staffing and budget support for what has become one of the most crucial and influential student support services American institutions can provide to college students.

Conclusion

The evidence overwhelmingly demonstrates that American college career services are inadequately equipped to prepare students for modern career success. With satisfaction rates below 40% and persistent financial consequences potentially stretching across lifetime earnings,[1][2][3] it is clear that the current system of higher education is failing college career center staff and the students they support. The personal financial consequences make this crisis of college career services impossible to ignore.

Parents can no longer assume that college tuition and fees paid to institutions include effective career preparation support. Instead, in the new reality of higher education, they must actively evaluate institutional career centers, consider private alternatives for specialized needs, and understand that strategic investments in off-campus career support may provide the highest returns of any educational expenditure.[22] As the job market becomes increasingly complex and career paths more fluid, the complementary use of both institutional and private career resources represents the most prudent approach to ensuring children's long-term career success and financial security.

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Read more from Sandra Buatti-Ramos, ACRW, CLMC

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Sandra Buatti-Ramos, ACRW, CLMC, Founder, Chief Learning Architect, & Lead Coach

Sandra Buatti-Ramos is a preeminent voice in career strategy and career education ecosystem design. As founder of Hyphen Innovation and Post-Traditional Careers, she develops research-driven, AI-powered frameworks that dismantle outdated talent development models and create scalable pathways to career mobility. A "Top Career Coach" known for her work with students, professionals, and forard-thinking organizations, she fuses dynamic coaching strategies with cutting-edge instructional design to accelerate workforce readiness transformation. Her portfolio spans award-winning career coaching initiatives, the creation of a workforce preparation Innovation Lab, and the launch of a first-of-its kind AI-driven learning ecosystem.

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References:

[1] Inside Higher Ed. (2023, November 30). Survey: What college students want from career services.

[2] Strada Education Foundation & The Burning Glass Institute. (2024). Talent disrupted: College graduates, underemployment, and the way forward.

[3] Abel, J. R., & Deitz, R. (2020, July 13). Delaying college during the pandemic can be costly. Federal Reserve Bank of New York Liberty Street Economics.

[4] Oreopoulos, P., von Wachter, T., & Heisz, A. (2012). The short- and long-term career effects of graduating in a recession. American Economic Journal: Applied Economics, 4(1), 1-29.

[5] Brennan, D., Bharadwaj, P., Narayanan, A., Shaw, C., Collins, I., Janson, N., & Bryant, G. (2025, August). Driving toward a degree 2025: Delivering value and ensuring viability. Tyton Partners.

[6] National Association of Colleges and Employers. (2021, June 3). Pandemic impacts career services budgets, staffing.

[7] National Association of Colleges and Employers. (2024, July). First destinations for the college class of 2023.

[8] Abel, J. R., & Deitz, R. (2025). The labor market for recent college graduates. Federal Reserve Bank of New York.

[9] Federal Reserve Bank of St. Louis. (2025, August). The jobs and degrees underemployed college graduates have. Open Vault Blog.

[10] Sigelman, M. (2024, February 22). Half of college grads are working jobs that don't use their degrees [LinkedIn post]. LinkedIn.

[11] Stanislaus, E. P., Hodge, L., & Wilkerson, A. (2021). Covid-19: how will historically underrepresented groups fair in the job market?. Journal of Underrepresented & Minority Progress, 5(SI).

[12] Bikar, S. S., Talin, R., Rathakrishnan, B., Sharif, S., Nazarudin, M. N., & Rabe, Z. (2023). Sustainability of graduate employability in the post-covid-19 era: initiatives by the Malaysian ministry of higher education and universities. Sustainability, 15(18), 13536.

[13] Tuononen, T. and Hyytinen, H. (2022). Towards a successful transition to work - which employability factors contribute to early career success?. Journal of Education and Work, 35(6-7), 599-613.

[14] Quenza. (2024). Career coach hourly rates, qualifications, cost considerations.

[15] Orduña, C. (2024, January 29). Decoding outplacement engagement: A conversation with Careerminds. Careerminds.

[16] Shore, T. H., Tashchian, A., & Forrester, W. R. (2020). The influence of resume quality and ethnicity cues on employment decisions. Journal of Business Economics and Management, 22(1), 61-76.

[17] National Association of Colleges and Employers. (2017). Primary focus: Career coaching vs. career counseling. NACEWeb.

[18] National Association of Colleges and Employers. (2022). The value of career services.

[19] National Association of Colleges and Employers. (2025). NACE members weigh in on mental health and well-being.

[20] National Association of Colleges and Employers. (2020). Career services staff salaries begin to separate at management level. NACEWeb.

[21] Eddy, P. L., & Gaston-Gayles, J. L. (2018). Faculty turnover in student affairs: A longitudinal examination. Journal of College Student Development, 59(4), 439-453.

[22] Zhou, L. (2024). 70+ coaching statistics: The ROI of coaching in 2025.

[23] National Association of Colleges and Employers. (2022). 2022 NACE Student Survey Report and Dashboard - 4 Year.

[24] National Association of Colleges and Employers. (2023). Career Services Benchmark Report. Referenced in Inside Higher Ed. (2023, December 7).

[25] National Center for Education Statistics. (2024). Adult learners in college: Facts & statistics. Integrated Postsecondary Education Data System (IPEDS). U.S. Department of Education.

[26] TopResume. (2019, June 16). Study results: Should you invest in a professionally written resume?