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Across the world, people are debating whether college and postgraduate degrees are still worth the investment, especially with the slowdown in technology hiring and fears of unemployment caused by automation. Yet the evidence suggests that graduates from elite institutions continue to be more successful in finding jobs and building careers than others. Despite economic uncertainties and the rapid advance of artificial intelligence, higher education at the top end of the spectrum continues to hold its worth — for now.

As the landscape of work and learning keeps evolving, Tarek Fadlallah, the Dubai-based managing director and chief executive officer of Nomura Asset Management (Middle East), puts it this way: “You can never have too much formal education, even in the age of AI.”

That said, over the past year, job cuts in Silicon Valley and Europe have shaken confidence among young professionals. Across 2024–2025, more than 400,000 technology layoffs have been announced worldwide, even as firms across sectors ramp up hiring in AI and data roles. At the same time, AI-driven automation is altering traditional career paths.

For proof, look no further than a few recent Wall Street Journal headlines: “UK economy faces rising risk of a ‘hard landing,’ says BOE’s Taylor” (Oct. 14); “Australia’s jobless rate jumps” (Oct. 15); “Eurozone industrial production swings back to decline” (Oct. 15); and “In a sea of tech talent, companies can’t find the workers they want” (Oct. 1).

The World Economic Forum’s “Future of Jobs Report 2025” expects 92 million jobs to be automated away, although it says 170 million new ones may be created by 2030 as AI, robotics and other technological advancements reshape tasks and roles. These roles, however, require digital and analytical skills that many universities still fail to teach adequately.

As a result, the opportunity gap between graduates from well-funded universities and those from ordinary ones keeps widening. Top-tier institutions — especially those with global reputations and active links to industry — still act as pathways to stable, high-paying jobs. But for many others, the return on investment is uncertain.

At universities like MIT, Stanford University and Caltech, the employment rate among graduates is believed to be among the world’s highest. MIT alumni-founded founded firms are estimated to generate roughly $1.9 trillion in annual revenue, while Stanford-affiliated ventures are often cumulatively valued around $2.7 trillion — roughly the size of the world’s tenth-largest economy.

In the UK, graduate recruitment among the top 100 employers fell by 14.6 percent in 2024, the steepest drop since 2009. Yet competition for these positions has only intensified, with applications up by almost 28 percent. This does not mean the graduate premium is disappearing; it is simply becoming more concentrated. Graduates from Oxford, Cambridge, Imperial College and the London School of Economics still lead in securing jobs in law, finance and technology. In professional areas such as investment banking and corporate law, firms in London’s financial district typically offer total compensation for entry-level jobs exceeding £50,000 a year.

Across Europe, employment statistics tell a similar story. Eurostat put the employment rate among graduates aged 20–34 in 2024 at 83–85 percent across the EU. Those with only secondary education remain far behind in both incomes and opportunities. The advantage of higher education — especially at the top — remains clear despite a changing job environment.

In the US, the debate takes a different turn because of cost. Student-loan debt now totals $1.8 trillion, with the average borrower owing close to $39,000. About one in six American adults carries federal student-loan debt, creating a generation anxious about whether their degrees were worth it. Still, recruiters consistently favor candidates from leading institutions, particularly in business, engineering and computer science. Employer surveys and reports in 2024–2025 have emphasized AI, digital literacy and applied problem-solving, while calling for rapid curricular integration to better prepare graduates for a volatile world.

Many smaller universities and community colleges, however, are struggling. Without strong connections to industry or sufficient endowments, they find it harder to justify rising tuition fees. Unless they adapt — by adding internships, vocational opportunities and more technical coursework — their graduates could end up repeating the experience of many Gen Xers in the US: burdened with loans that are impossible to repay but without the job security they expected.

This concern is relevant in the Arab world as well, where a majority of the population is under 30. The Arab Youth Survey 2023 found that most young Arabs prize education and family, yet outside the GCC bloc more than half doubt they can find well-paying jobs at home. For them, investing in quality higher education — ideally from institutions with proven records of employability — is not a luxury but a necessity. An educated young population remains the strongest potential driver of long-term growth and stability in the region.

It is true that some of the world’s biggest names in entrepreneurship — Bill Gates, Steve Jobs and Richard Branson — rose to extraordinary heights without completing college. But these are exceptions, not the rule. They possessed a mix of luck, timing and talent that cannot be easily replicated. For the overwhelming majority, a degree remains the best route to upward mobility. A recent CNBC report showed that American college graduates earn on average about two-thirds more than those with only a high-school diploma. The career trajectory may vary by field, but the correlation between higher education and higher earnings is undeniable.

Higher education continues to be one of the most dependable ladders to success. The ladder may be narrowing, but it still leads upward for those who climb with focus and a sense of purpose.

Arnab Neil Sengupta

Higher education, particularly at respected institutions, continues to be one of the most dependable ladders to success. The ladder may be narrowing, but it still leads upward for those with focus and a sense of purpose — and for those fortunate enough to be born and raised in relatively stable countries. For young people in the Gulf region and beyond, nationals as well as expatriates, the wisest choice is not to give up on advanced education because of temporary market trends, but to choose their field carefully and commit to lifelong learning.

“No matter what the job situation in certain fields right now, a good degree from an elite institution still counts. Highly educated people will still be needed to run companies, organizations and government departments and make key decisions,” Ramesh Venkataraman, a private equity investor and former partner in McKinsey & Company, told Arab News from New York.

While acknowledging that job displacement will likely happen as a result of AI and automation, Venkataraman, who himself has degrees in engineering and international relations from IIT Kharagpur, Oxford and Princeton, said:  “The ability to weigh multiple facts, analyses and other factors and make judgement calls will remain a uniquely human capability for a long time. AI can recommend but a human will have to make the ultimate call.”

Taken together, the trends and insights above point to a single conclusion: Economic cycles come and go, and new technologies disrupt entire industries from time to time. But the fundamental value of knowledge endures. As long as skill, innovation and critical thinking remain prized around the world, higher education at the top end of the spectrum will keep its worth.

• Arnab Neil Sengupta is a senior editor at Arab News. X: @arnabnsg