Tag: Underclass

  • The Educated Underclass Without Borders

    The Educated Underclass Without Borders

    Gary Roth’s The Educated Underclass describes a growing population of college-educated people who, despite credentials and effort, are increasingly locked out of stable, dignified work. While Roth’s analysis focuses primarily on the United States, the framework extends naturally—and urgently—to international students educated in the U.S. and to the global labor markets they enter after graduation. When immigration regimes, artificial intelligence, and comparative higher education systems are considered together, the educated underclass emerges not as a national failure, but as a transnational condition produced by modern higher education itself.

    U.S. colleges and universities aggressively recruit international students, presenting the American degree as a global passport to opportunity. These students pay higher tuition, subsidize institutional budgets, and enhance global prestige. What is far less visible is that access to the U.S. labor market after graduation is narrow, temporary, and increasingly unstable. Programs such as Optional Practical Training and the H-1B visa tie legal status to continuous employment, transforming graduates into a compliant workforce with little leverage. Job loss does not merely mean unemployment; it can mean removal from the country.

    Indian students in STEM fields illustrate this dynamic clearly. Drawn by promises of innovation and demand, they enter graduate programs in computer science, engineering, and data analytics, only to find themselves funneled into a lottery-based visa system dominated by outsourcing firms and consulting intermediaries. Visa dependency suppresses wages, discourages job mobility, and creates a workforce that is educated but structurally insecure. Roth’s educated underclass is visible here, but intensified by deportability.

    Artificial intelligence compounds this precarity. Entry-level technical and analytical roles—software testing, junior programming, data cleaning, research assistance—are increasingly automated or augmented. These were precisely the jobs that once absorbed international graduates. AI-driven labor contraction now collides with rigid visa timelines, turning technological displacement into enforced exit. Immigration policy quietly performs the work of labor market triage.

    Chinese students in business, economics, and the social sciences encounter a different version of the same trap. U.S. employers are often reluctant to sponsor visas outside STEM, while Chinese labor markets are saturated with domestically educated elites. Meanwhile, geopolitical tensions—intensified during the Trump administration—have normalized suspicion toward Chinese students and scholars, particularly in research-adjacent fields. The American degree, once a clear marker of distinction, increasingly yields managerial precarity, contract work, or prolonged dependence on family support.

    China’s own higher education system complicates this picture. Massive state investment has expanded elite universities and research capacity, producing millions of highly credentialed graduates each year. Yet employment growth has not kept pace. Underemployment among Chinese graduates has become routine, and returnees from U.S. programs often find that their foreign credentials no longer guarantee elite status. In both systems, education expands faster than secure work, producing surplus aspiration and managed disappointment.

    Canada is often presented as a counterexample to U.S. hostility toward international students, but its outcomes reveal similar structural dynamics. Canadian universities rely heavily on international tuition, while immigration pathways—though more predictable—still channel graduates into precarious labor markets. Many international students end up in low-wage service or contract work unrelated to their degrees while awaiting permanent residency. At the same time, domestic Canadian graduates face rising competition for limited professional roles, particularly in urban centers. The result is not inclusion, but stratified precarity distributed across citizenship lines.

    These global dynamics have domestic consequences that are rarely acknowledged honestly. International students and foreign graduates are increasingly perceived as occupying educational and professional positions that might otherwise go to people whose families have lived in the United States for generations. In elite universities, graduate programs, and competitive labor pipelines, institutions often prefer international applicants who pay full tuition, arrive pre-trained by global inequality, and are more willing to accept insecure work.

    For historically rooted communities—Black Americans, Indigenous peoples, and long-established working-class families—the resentment is especially acute. After centuries of exclusion from education and professional employment, they are told that opportunity is scarce and must now be globally competitive. The contradiction is profound: a nation that never fully delivered educational justice at home markets opportunity abroad while declaring it unattainable domestically.

    Trump-era immigration policies exploited this tension by framing foreign students and workers as threats rather than as participants in a system designed by elites. Travel bans, visa restrictions, attacks on OPT, and open hostility toward immigrants transformed structural failure into cultural conflict. Yet the animosity did not originate with Trump. It reflects decades of policy choices that expanded higher education without expanding secure employment, substituted global labor arbitrage for domestic investment, and left working- and middle-class Americans to absorb the losses.

    Universities play a central role in sustaining this arrangement. They function as global sorting machines, extracting tuition from abroad, conferring credentials with declining labor-market value, and disclaiming responsibility for outcomes shaped by immigration law and AI-driven contraction. Career services rarely confront these realities directly. Transparency would threaten enrollment pipelines, so silence prevails.

    In Roth’s terms, this enlarges the educated underclass while fracturing it internally. Domestic and foreign graduates are pitted against one another for shrinking footholds, even as both experience debt, insecurity, and diminishing returns on education. The conflict is horizontal, while power remains vertical.

    The educated underclass is no longer emerging. It is already global, credentialed, indebted, and increasingly unnecessary to the systems that trained it. Until institutions, employers, and governments in the U.S., Canada, China, and beyond are held accountable for the scarcity they engineer, higher education will continue to function not as a ladder to mobility, but as a mechanism for managing inequality across borders.


    Sources

    Gary Roth, The Educated Underclass

    Harriet A. Washington, Medical Apartheid

    Elisabeth Rosenthal, An American Sickness

    OECD, Education at a Glance

    U.S. Citizenship and Immigration Services, OPT and H-1B program materials

    National Foundation for American Policy, reports on H-1B labor markets

    Georgetown University Center on Education and the Workforce, credential inflation studies

    International Labour Organization, global youth and graduate employment reports

    China Ministry of Education, graduate employment statistics

    Statistics Canada, international students and labor market outcomes

    David Graeber, Bullshit Jobs

    Richard Wolff, writings on global labor surplus and credentialism

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  • The Housing Crisis and the Rise of the Educated Underclass

    The Housing Crisis and the Rise of the Educated Underclass

    The latest data from the National Low Income Housing Coalition (NLIHC) makes clear that the housing crisis is not just about poverty — it is about the shrinking distance between the working poor and the working-educated. The gap between wages and rent has widened so dramatically that even college-educated workers, adjunct faculty, nonprofit staff, social workers, and early-career professionals are drowning in housing costs.

    The Housing Wage and the Broken Promise of Higher Ed

    According to NLIHC’s Out of Reach 2025 report, a full-time worker in the U.S. needs to earn $33.63 an hour to afford a modest two-bedroom apartment and $28.17 an hour for a one-bedroom. That’s far higher than what many degree-holders earn, especially those in education, public service, healthcare support, and the nonprofit sector.

    The academic workforce itself is emblematic of the problem: adjunct instructors with master’s degrees — sometimes PhDs — often earn poverty-level wages. Yet the rents they face are no different from those of skilled professionals in high-paying industries.

    Higher education promised mobility; instead, it delivered a generation of renters one missed paycheck away from eviction.

    An Educated Underclass Renting in Perpetuity

    NLIHC’s data shows a national shortage of affordable housing: only 35 affordable and available homes exist for every 100 extremely low-income renters. While this crisis hits the lowest-income Americans hardest, it also drags down millions of educated workers who now compete for the same shrinking stock of affordable units.

    This convergence — between the working poor and the working educated — reflects a structural breakdown:

    • New graduates carry student debt while starting in low-wage jobs.

    • Millennial and Gen Z workers face rents that have grown far faster than wages.

    • Former middle-class professionals, displaced by automation and recession, re-enter the workforce at lower wages that no longer match their credentials.

    • Public-sector and nonprofit workers do “mission-driven” work but cannot afford to live in the communities they serve.

    Increasingly, higher education is not a safeguard against housing insecurity — it is a gateway into it.

    The Spiral: Student Debt, Rent Burden, and Delayed Adulthood

    The educated underclass faces a double bind:

    High rents prevent saving, while student debt prevents mobility.

    NLIHC data shows that renters who are cost-burdened (spending more than 30% of income on housing) or severely cost-burdened (over 50%) are forced to cut spending on essentials. For many degree-holders, this means:

    • Delaying or abandoning homeownership

    • Working multiple jobs to cover rent

    • Moving back in with parents

    • Delaying marriage and child-rearing

    • Relocating constantly in search of slightly cheaper housing

    This is not “adulting” — it’s economic triage.

    The educated underclass is increasingly indistinguishable from the broader working class in terms of economic vulnerability, yet still burdened by expectations that their degrees should have delivered them stability.

    When Housing Costs Undermine Higher Education Itself

    The affordability crisis is reshaping entire higher education ecosystems:

    • Students struggle to find housing close to campus, leading to long commutes, couch surfing, or dropping out.

    • Graduate students and postdocs — essential academic labor — increasingly rely on food aid, emergency grants, and organizing unions just to survive.

    • Colleges in high-cost cities cannot hire or retain staff because employees cannot afford to live nearby.

    • Public institutions face declining enrollment because families see no payoff to degrees that lead to poverty wages and unaffordable housing.

    If higher education cannot provide a pathway out of housing insecurity, its legitimacy — and its future — is in question.

    Toward Real Solutions: Housing as an Educational Issue

    Solving this crisis requires acknowledging a simple truth: housing policy is higher-education policy.

    The educated underclass is not a natural outcome of individual failure; it is the product of a system that overcharges for education and underpays for labor while allowing rents to skyrocket.

    Real solutions would include:

    • Large-scale public investment in deeply affordable housing

    • Expansion of rental assistance and housing vouchers

    • Living-wage laws that reflect real housing costs

    • Student-housing development tied to public colleges

    • Forgiveness of rental debt accumulated during economic shocks

    • Strengthening unions among educators, adjuncts, graduate workers, and other low-paid professionals

    The promise of higher education cannot be realized while a degree-holder earning $20, $25, or even $30 an hour still cannot afford a one-bedroom apartment.

    The Verdict: Housing Is the Fault Line of the New Class Divide

    NLIHC’s data confirms what millions of renters already know: the U.S. housing market punishes workers regardless of education level, and higher education no longer protects against precarity. The educated underclass is not a fringe category — it is becoming the norm.

    Until wages align with housing costs and the housing system is restructured to serve people rather than profit, the divide between those who can afford stability and those who cannot will continue to widen. And higher education, once marketed as the bridge to a better life, will remain yet another broken promise — one rent payment away from collapse.

    Sources

    National Low Income Housing Coalition, Out of Reach 2025

    NLIHC Research and Policy Briefs

    NLIHC Affordable Housing Data and Fact Sheets

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  • How the Educated Underclass is Already in Crisis

    How the Educated Underclass is Already in Crisis

    For millions of Americans with college degrees, the headlines about a “possible recession” feel like a cruel joke. While official statistics lag, the lived reality for the educated underclass—those with bachelor’s or advanced degrees who are struggling to maintain stability—is nothing short of an economic depression. Rising costs of living, stagnating wages, and dwindling job security have already reshaped daily life, and many are barely hanging on.

    Unemployment figures tell only part of the story. College graduates now make up a record 25% of the unemployed, with white-collar layoffs in tech, finance, and even healthcare rising. Those who are employed are often underemployed, working multiple part-time jobs or in positions that barely require a degree. The promise that a college credential ensures upward mobility is eroding rapidly, leaving a generation of highly educated Americans questioning the value of the very investment that was supposed to secure their future.

    Housing costs are skyrocketing, especially in urban centers where jobs are concentrated. Even modest apartments demand incomes far above what many professional graduates earn. Student loan debt compounds the pressure, forcing difficult trade-offs between basic living expenses and debt repayment. For many, “making it” now means moving back in with parents or sharing crowded apartments with friends—situations reminiscent of a pre-adult adolescence prolonged indefinitely.

    Meanwhile, inflation eats away at savings. Food prices, healthcare, and transportation costs continue to climb, leaving little room for discretionary spending or emergency funds. The safety net that the previous generation relied on—a stable job, homeownership, a modest retirement plan—is increasingly inaccessible. For the educated underclass, financial precarity has become normalized, even invisible to those who still enjoy some buffer in the broader economy.

    The psychological toll is real. Anxiety, depression, and burnout are rampant among highly educated professionals facing underemployment or precarious work conditions. The “American Dream” has shifted from upward mobility to merely surviving, with little room for long-term planning or security.

    Policymakers continue to debate whether a recession is coming, but for many, the recession has already arrived. It’s not marked by dramatic market crashes or bold headlines—it is quiet, slow, and insidious, felt in empty savings accounts, missed rent payments, and jobs that fail to match education and ambition. Recognizing this reality is the first step toward meaningful change. Until then, the educated underclass is living through an economic depression, one degree at a time.

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