RBJ Article: Underemployment – Working in a Job That Doesn’t Fully Utilize Education, Skills, Experience

The Federal Reserve Bank of New York takes a leadership role in capturing data and trends on underemployment. Their data provides valuable insights into how underemployment changes over time and how the risk of underemployment is associated with a person’s college major. Of course, at the individual level, underemployment among college graduates is influenced by factors such as the reputation of the college, the student’s level of engagement, and their familial social capital.

However, when viewed in aggregate, the data tells a clear story: Unless a college credential results in a license or certification (e.g., a nursing license, teacher certification, etc.), most college graduates will start their careers underemployed. In business management, for example, the underemployment rate for recent college graduates is 53.6%.

On the other side of the employment relationship, employers are struggling to find “qualified” employees. Through our Speaking from Experience program and other forums that bring employers into Golisano Institute for Business & Entrepreneurship, we hear a consistent narrative about the challenges of filling jobs.

Why is this?

On one side, college graduates experience high rates of underemployment. On the other, employers struggle to find employees who meet their needs. It doesn’t add up.

For years, a national narrative has focused on a “skills gap”—the idea that employers can’t find workers with the technical skills required to perform specific job functions. In fields such as technology and healthcare, where functional tasks are well-defined, this may be true.

However, the employers we engage with—banks, marketing agencies, startups, and other companies that rely less on rigid technical skills—describe a different problem. They often refer to their hiring challenges in terms of work skills rather than functional expertise. This issue has been described as a lack of “work ethic” or “soft skills,” but ultimately, it comes down to professional behaviors such as punctuality, accountability, active listening, reliability, and engagement. These qualities are less about what you know and more about how you work.

Personally, I get frustrated when I hear blanket statements that disparage the work ethic of young people, particularly Gen Z. Our Gen Z students perform at levels comparable to previous generations. However, work experience does shape workforce readiness—and the data reveals a gap.

According to the Bureau of Labor Statistics, employment rates in January 2025, by age group, were as follows:

• Ages 16–17: 20.6%
• Ages 18–19: 45.3%

From our perspective, work is a learned skill—it requires practice.

In 1995, over 52% of youth were employed. Today, that number has dropped by 20 percentage points, representing a 62.5% decline in youth work experience.

At Golisano Institute, we believe business knowledge is only as valuable as the professional behaviors and attitudes that accompany it. That’s why we don’t just teach business—we practice it daily.

What does this look like in execution?

To take advantage of Tom Golisano’s generosity—through his underwriting of most student costs—students at the Institute must meet high professional standards. They are required to be punctual, dress professionally, and actively engage in networking opportunities. Two-thirds of their grades are based on mastery of business content, while the other third is based on their demonstration of professional behaviors.

Additionally, we recognize that students observe the professional behaviors of faculty and staff to understand workplace norms. If we, as employees of Golisano Institute, fail to present ourselves professionally, actively engage with each other, or demonstrate courtesy, respect, and productivity, we undermine the business lessons taught in the classroom. Mixed messages are not helpful when students are trying to understand the business world.

Although our first class won’t graduate until August, our students are already catching the attention of employers, as evidenced by strong paid internship placements. Last month, when a senior executive from a major Wall Street bank visited the Institute, he remarked, “If you produce graduates who are never late for meetings, you’re doing far better than most schools.”

Admittedly, not all of our students arrive at the Institute fully prepared for these expectations. However, those who persist and embrace the challenge experience remarkable transformation in an accelerated timeframe. During the spring and summer months, Tom and Monica Golisano host dinners with students to mentor them and hear about their experiences. Tom’s biggest takeaway so far? Students are growing in confidence, communication, and curiosity.

Most of our students do not come from families with social capital that will automatically lead to high-powered job opportunities. That’s why we see our work as solving a pain point—for both students and employers. By focusing on what businesses truly need, and by cultivating the attitudes and behaviors that lead to career success, we help students bridge the gap between potential and opportunity.

Tom often says, “If you do a good job today, you’ve earned the right to come back to work tomorrow.” Our students embrace this perspective, and it drives our holistic approach to eliminating underemployment.

Written by Dr. Ian Mortimer
Originally published in the Rochester Business Journal.