Why are people who majored in finance degree now being hired for finance jobs?
Why do graduates who majoured in finance degrees suddenly seem to be being hired as finance-related jobs?
The answer, according to research by the National Council on Teacher Quality (NCSTQ), could be that they’re being paid more than the minimum wage.
“Aspiring teachers are now being paid significantly more than teachers in other fields,” the group wrote in a recent report, citing research by McKinsey and Co. that showed graduates in finance earned on average $27,000 more than non-finance graduates.
While the NCTQ report didn’t specify how much money the average finance grad earned, the McKinsey report indicated that the average salary for graduates who did not earn a finance degree in finance was $39,000.
So, why are so many aspiring teachers being paid much more than their peers?
The research also found that graduates who got a finance job were paid significantly less than those who didn’t get a finance program.
For instance, the average pay for a finance graduate who got an associate’s degree was $31,400, whereas the average for a non-Finance graduate who didn, was $35,600.
For those graduates who earned finance degrees, it was $37,100, a gap that could have been bridged if the NCSQ’s research was accurate.
But according to the NCLQ report, those who went to college for finance degrees are more likely to have been unemployed for at least six months.
The research also indicated that many graduates who started out as students in finance are now employed in non-financial jobs, including sales and financial services, according the NSTQ report.
So why do people in finance have to work so hard to get hired for jobs that pay less?
“Teachers are not only getting a good education, they’re getting paid much better than the average teacher who didn (sic) a degree,” the NSE told The Guardian.
“The problem is that the finance industry is getting so competitive that people are doing very well.
That’s what’s wrong.”
“It’s the best profession for a good job, it’s the highest-paid profession for the most prestigious job, and they’re doing it with very little regulation, so it’s a very tough career,” said Robert H. Hausmann, a professor of finance at the University of Maryland.
Hsu added that it’s not unusual for teachers to have to go into unpaid internships or even teaching positions to make ends meet.
“It’s a lot of work for them to make that kind of money, especially if they’ve been doing it for years,” he said.
So how did the NSLQ come to this conclusion?
Hsu said it’s likely that the NSHRM started looking into the issue of finance grads earning so much more in the early 2000s, as a result of an increased focus on the profession by the federal government and state governments.
In 2006, the government introduced the Education for All Act, which established the National Center for Education Statistics to compile data on how American education systems were performing.
The NSHRLA also asked the federal Education Department to develop a national curriculum, which was released in 2007.
The NSE found that the education system in the United States has been very successful in creating a profession that’s more inclusive and accessible.
“I think the problem is we’re really trying to put the brakes on that progress,” Hsu explained.
“If you have an industry that’s producing a lot more money than the public school system, you don’t want that industry to be taking the lead.”
According to the report, the NSCRA’s impact has also been felt by students and teachers.
Hsu said that while it’s important to make sure that all students are included in the workforce, it is also important to ensure that teachers are not paid more for doing the job that is best for their students.
“Teaching is one of the hardest professions to do and it’s also the hardest to be paid, but there are a lot people who are just making too much money to pay a teacher much more,” he added.
“What we need to do is have a discussion about the pay and the standards for what teachers should be paid.”
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