Major Choices

When thinking about the future of the country, many people say “Think of the children!” but fewer people wonder what those children are thinking.  Looking at the chosen majors of today’s graduates is one way to measure what America’s children are thinking.  Even better, their revealed preference is probably more trustworthy than surveys.

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Source: US Department of Education, National Center for Education Statistics, Digest of Education Statistics

The biggest thing that stands out is the increased focus on the practical.

  1. Business majors are up while social science and history majors are down.
  2. Engineering technology, which prepares graduates for a job right out of school, is up while engineering majors are down. 
  3. Students have decided that they need majors for jobs that used to be done by high school graduates as they are getting more degrees in transportation, securities and protective services as well as materials moving as well as parks, recreation, leisure and fitness studies. 
  4. Education majors have shrunk, but this is probably due to cultural changes that allow women more choices when it comes to their field of study. 
  5. Students also see the increased demand for health services in their future and have gone into biology, psychology and health professions and related clinical sciences at increasing rates. 
  6. Computer science majors have increased with the emergence of personal computers. It should be noted that this major actually peaked at 4.5% of college graduates in 2003-04 with the class of students who picked their major at the height of the internet bubble.  The recent drop off in CS of 1.5% of all students choosing other majors almost exactly matches the additional 1.4% of college students choosing to major in health professions and related clinical sciences between the 2003-04 year and the 2006-07 year.

For those worried about a decline in the quantitative focus of students, the shortfall of quantitative majors is only 1.25% of the student population compared to 1970, and this number completely disappears if it is assumed that half the double majors are doing something quantitative or a fraction of the business majors are learning about statistics.  Of course, the college graduate situation only looks good when comparing the United States to a past version of the United States.  What is worrisome about the education picture to many people is the declining relative position of the United States compared to other counties and that will be covered in a future post.

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About

I studied Bioengineering at the University of California at San Diego. While there I served as a trustee on the investment committee of the UCSD Student Foundation, a group that manages an endowment to fund scholarships. While in college I applied my interest in finance and economics by working as a summer associate at Clarium Capital Management, working part time my senior year, and joining full time when I graduated in 2006, staying there through August 2010. I am currently working as a portfolio manager at another global macro hedge-fund in the Presidio (And blogging about more directly market related ideas at their restricted blog). I’ve been focusing on quantitative finance, currencies, commodities, the interplay between finance and politics, demography and other long term trends.

Disclaimer: You shouldn’t consider anything on this site to be a recommendation or solicitation to buy, sell, or hold any securities or commodities. I’m not offering you investment advice. I or the company I work for may hold positions in securities that I mention.