The Value of Starting a Career as a New graduate

Should You Go to Graduate School Right After College or Start Working as a New Graduate?

Deciding whether to go straight to graduate school after completing an undergraduate degree or to enter the workforce as a fresh graduate is a major choice for many students. For those who aspire to become researchers in academia, the dilemma is often whether to continue down the research path without interruption or to first step into society and gain practical experience.

In this article, we will examine the value of starting full-time work immediately after graduation, drawing on recent data and research findings. We will especially focus on how early work experience broadens long-term career perspectives, expands career options and supports decision-making, and affects lifetime income and adaptability in the labor market. We will also look at comparative data between Japan and overseas (the U.S. and other OECD countries), exploring the benefits of starting work as a new graduate from an international perspective. This discussion is intended as a guide for university students and those considering graduate school, particularly those uncertain about whether to pursue academia.

How Work Experience As a New graduate Broadens Long-Term Career Perspectives

By stepping into society right after graduation—whether by joining a company or starting a business—you gain practical insights and experiences unavailable in academia. In an actual workplace, you witness firsthand how organizations function and how different members play their roles. This provides not only a deeper understanding of your field of study but also insight into industry structures, workflows, and the practical skills demanded by employers beyond what is listed in a job description. While graduate school tends to confine perspectives within academia, gaining work experience early expands your overall career outlook.

In today’s job market, lifetime employment in a single profession is increasingly rare. In the U.S., statistics show that by the age of 55, individuals will have held an average of 12 jobs, and moving across multiple careers is becoming the new normal. Experiencing a variety of tasks early on allows individuals to better understand their strengths and interests and lays a foundation for flexibility across diverse roles and industries. Companies, too, increasingly value people who can adapt to change; many point out that “the era of working at a single company for life is becoming a thing of the past” and that employers have started to value talent with nonlinear career paths*1. Entering the workforce as a new graduate is an excellent opportunity to cultivate such flexibility and adaptability from a young age.

Moreover, perspectives gained through practical work can strengthen future academic pursuits. Real-world issues and questions can inspire more grounded research topics in graduate school, adding depth to academic inquiry. For example, someone who works as an engineer and later returns to graduate school can approach research with a concrete understanding of industry needs and real-world challenges, potentially producing more applied and socially impactful results. Conversely, those who proceed directly to graduate school may develop a narrower, purely academic perspective, which can make later career changes into the private sector or other fields more challenging. Early work experience broadens your career map and increases your future options.

Expanding Career Options and Improving Decision-Making

Starting a full-time job as a new graduate offers opportunities for experimentation and validation in your career choices. By working early, you can better answer questions such as: What kind of work excites me? In what field do I want to contribute? Do I truly need further graduate-level specialization? In other words, early employment helps you make better career decisions.

If you’re unsure about going to graduate school, working first serves as a filter to assess whether additional study and research are truly necessary. Only after experiencing the workplace can you see how your existing knowledge applies, which skills you lack, and whether advanced education is warranted. If you conclude that higher-level knowledge is essential, your motivation for graduate school becomes clearer; if you feel you can thrive without it, then there’s no need to force the decision.

Personal growth gained through work—responsibility, planning, and interpersonal skills—also strengthens decision-making. The transition from student to professional brings abundant learning and self-discovery. Trial and error, along with successes and failures in a new environment, help you understand your strengths and weaknesses and build a steady compass for future choices.

Specific Advantages of Early Work Experience

• Assessing job fit: By actually working, you can experience your interests and aptitudes directly, making it easier to judge whether you need graduate-level specialization. Through internships and similar experiences, you can test whether a path suits you, improving long-term satisfaction*2.

• Acquiring business skills: Communication, teamwork, and problem-solving—skills hard to gain through academics alone—are honed in the workplace. In practice, hiring managers seek generalist skills in new graduates such as multitasking, prioritization, and interpersonal abilities*3, and these are best cultivated through real work experience.

• Building networks and finding mentors: Working enables you to form professional networks with supervisors and senior colleagues*2. These connections are valuable assets for future career moves, job introductions, and even for re-entering research roles later.

• Economic independence and reduced risk: Earning a salary stabilizes your life base and promotes financial independence. By reducing reliance on loans for tuition and living expenses, you can lighten the burden even if you plan to attend graduate school later. In the U.S., surveys indicate that about 40% of graduate students carry $20,000–$60,000 in loans, and nearly 30% carry even more—amounting to several million to over ten million yen*4. Working and saving first reduces this debt risk and allows you to focus on study later with peace of mind.

In short, entering the workforce as a new graduate deepens your understanding of your career and improves the quality of future choices. If you reconsider graduate school after first working, your reasons for pursuing it—what you want to study and why—become clearer, which supports motivation and outcomes after enrollment.

Long-Term Income Impact and Labor Market Adaptability

Lifetime Income: Data-Driven Benefits of Early Work

Many people wonder how career choices affect lifetime earnings and opportunities for promotion and pay raises. What differences emerge over the long term between starting work as a new graduate and continuing on to graduate school?

Let’s begin with Japanese statistics. They show that, over the long run, graduate degree holders have an income advantage. According to the Ministry of Health, Labour and Welfare’s 2024 Basic Survey on Wage Structure, the average annual income at age 20-24 is about ¥2.51 million for bachelor’s graduates and about ¥2.86 million for newly hired master’s graduates. In the early 20s, those who started working earlier earn slightly more due to longer tenure and incremental raises. After age 25, however, the trend reverses, and master’s graduates out-earn bachelor’s graduates. At age 45-49, master’s graduates earn roughly ¥1.4 million more per year on average*5.

Thus, in Japan, a wage premium for higher educational attainment does exist, and deepening expertise in graduate school often brings long-term financial benefits. Even after considering tuition and the opportunity cost of foregone wages, the lifetime earnings increase suggests a strong chance of more than offsetting those costs. In other words, “going to graduate school increases lifetime income” is supported by data.

Two caveats are in order: first, the income benefits do not appear immediately; second, depending on the field, graduate school may not yield e

conomic benefits.

Regarding the first point, as noted, entering the workforce is delayed by about two years if you pursue a master’s degree, so in the early 20s, earnings may temporarily lag behind those who started working immediately. However, this gap tends to reverse within a few years*5, and the educational wage premium then widens over time—so if you prioritize long-term career development over short-term income, earning an advanced degree can be effective.

As for field differences, international research offers striking findings. A large U.S. study analyzing about 14,000 graduate programs calculated the ROI of graduate education and reported that roughly 40% of master’s degrees produce no positive net economic benefit (indeed, they are a loss) *6. In other words, a considerable number of programs do not pay off in lifetime earnings. While some master’s degrees in fields like engineering, computer science, and medicine can yield multi-million-yen lifetime gains, even popular programs like the MBA show a negative median ROI, and humanities master’s programs have been estimated at a median lifetime loss as high as $400,000 (about ¥56 million) *6. For doctoral degrees, professional doctorates (e.g., JD, MD) generally have high returns, but many humanities and social science PhDs show negative economic returns*6. Although these figures are from the U.S., they suggest that “graduate school leads to higher income” cannot be stated categorically; outcomes depend heavily on field and career path.

Overall, the key is to weigh the income gained by working immediately against the educational wage premium from graduate study. While averages in Japan indicate higher long-run earnings for master’s graduates, you should realistically consider how much education affects pay in your target industry and role, and how much added value graduate-level learning would bring. If you aim for a highly specialized or research role, a graduate degree is virtually essential; otherwise, working first and pursuing graduate school later as needed is a perfectly valid choice. The income and experience gained in the initial 2–3 years of work are substantial and can become assets for your subsequent career and life planning.

Labor Market Adaptability and Stability

Starting work as a new graduate matters not only for long-term earnings but also for adaptability and stability in the labor market. What impact does early practical experience have on subsequent employment opportunities and career stability?

First, early work experience increases employability and reduces unemployment risk. Research suggests that those who worked during their student years have higher post-graduation employment rates and are less likely to face unemployment*7. People who have learned basic professional norms, business manners, and work processes appear as “ready contributors” to employers and are often evaluated more favorably than those without experience.

In many hiring contexts, practical experience is weighted more heavily than academic pedigree alone. In the U.S., while about 65% of job postings require at least a bachelor’s degree, many employers value internships and work experience over GPA or major. Today’s employers reportedly expect applicants—even for new graduate roles—to demonstrate skills equivalent to about two years of practical experience*3. Given increasingly specialized business environments, companies want newcomers to possess a degree of hands-on capability. Entering graduate school without any work experience can make it harder to be seen as immediately effective when you later enter the job market; adapting may take time. By contrast, if you start working as a new graduate and build experience, you can more smoothly navigate the job market—even when changing fields—because you are already considered a “professional with experience.”

As noted, career changes are more common today than in the past. Technological and economic shifts mean more people experience multiple careers over a lifetime, and employers increasingly value diverse experience*1. Early work experience builds resilience through successes and overcoming difficulties, enhancing your capacity to adapt. This flexibility becomes the driving force for stepping into new areas if industries change or your interests shift. As the saying goes, “it’s worth buying hardship when you’re young,” and the adaptability and learning ability built through early work experience are valuable assets across a long career.

In addition, starting full-time work early allows you to benefit sooner from social insurance and company welfare programs. As a full-time employee, you typically enroll in pension and health insurance and may receive housing assistance, training, and other support, all contributing to economic stability and skill development. Conversely, graduate students often have limited income and weaker social protections as students. In Japan, the new graduate hiring system remains influential; in the first few years after graduation, “second-new-graduate” candidates can often change jobs relatively easily, but entering entirely new fields becomes harder with age. Building a track record early increases your market value and helps secure future options within Japan’s employment system.

International Perspective: Trends Abroad

The question of whether to work first or continue to graduate school is universal. Let’s consider international data and cases for another angle on this theme.

The U.S. : Work First, Then Graduate School

In the U.S., it is common not to go directly to graduate school after a bachelor’s degree; many people first work, so the average age of graduate students is higher than in Japan. According to third-party surveys, the majority of U.S. graduate students are not so-called “straight-to-master’s” students: many are 25 or older. In one national survey, 81% of respondents were graduate students or alumni over 25, and nearly half studied while holding full-time jobs. The data also show 49% were employed full-time and 22% part-time, indicating that studying while working is not unusual in the U.S.*4.

This reflects the fact that many U.S. graduate programs—especially MBAs and professional schools—require or strongly value work experience. For MBA programs at top schools, the average matriculant is about 27–28 years old (roughly five years post-bachelor’s), and it’s common for students to have five or more years of experience. In executive MBA and other working-professional programs, average ages can be in the late 30s, with many students holding over a decade of managerial experience*8. In short, the “work first, then return to school as needed” pathway is widely accepted in the U.S.

U.S. employers also value practical experience, as noted earlier. Even for new graduates, those with substantial internships or work experience are welcomed. Universities have responded by integrating co-op and internship programs into curricula. Northeastern University’s well-known co-op program, for instance, has students complete multiple long-term internships, graduating with the equivalent of a year or more of work experience. This model bridges classroom learning and on-the-job experience and rests on the belief that early exposure to the workplace benefits students in the long run*3.

OECD Countries: Transition Support and Dual Systems

OECD educational studies reveal national strategies for supporting transitions from education to work. Many countries emphasize policies that help young people secure jobs promptly after graduation. Recent reports highlight concern over increases in youth who are neither in education nor employment (NEET) and warn that extended joblessness at a young age can have lasting negative effect*9. As a result, internships, vocational training, and career guidance that smooth the transition for higher-education graduates are a priority.

Some countries have established dual-style systems that provide work experience during schooling. Germany and Switzerland, for example, maintain robust vocational education and training systems through which young people can study and work in parallel. OECD analyses indicate differences between countries where job hunting traditionally begins after education ends and countries where education and work run concurrently. In the latter, students often work as interns or apprentices while studying, resulting in higher post-graduation retention rate*9. In short, early contact with the labor market helps prevent mismatches and youth unemployment.

Academia Today and Career Strategy

Finally, consider academic careers from an international perspective. Pursuing a doctorate and becoming a researcher is attractive, but the path has become more uncertain. According to OECD research, the number of PhD recipients in member countries surged in the late 2010s while permanent academic positions did not increase; “from 2014 to 2019, PhD recipients rose by 25%, but academic positions shrank, producing a dual labor market in which a small number of stable professorships coexists with a large number of precarious research roles.” In many countries, oversupply has led to many postdocs and adjuncts in unstable employment, and increasing numbers are leaving research*10.

Given this reality, even aspiring academics should consider building work experience early. Since a doctorate does not guarantee a research post, industry employment should remain a live option. It is far easier to pivot to the private sector if you have already worked in industry at the bachelor’s or master’s stage, rather than only after completing a postdoc. To address these issues, the OECD recommends that universities and research institutions help doctoral candidates acquire skills for non-academic careers as well—providing training and internships relevant to industry and easing transitions beyond academia*10. In other words, researchers are encouraged to diversify their career strategies; early full-time industry experience is also wise from a risk-management standpoint.

Researchers with industry backgrounds also have advantages in perspective and skills. Those who have worked in industry are more likely to select applied research topics that align with societal needs and can collaborate across fields or commercialize results more flexibly. Project management and leadership skills are likewise useful in running research projects and teams. Worldwide, it is not uncommon for people to become professors after industry careers, and in Japan, too, the number of industry-experienced faculty and academia–industry collaborations has been growing. Starting your career in the private sector is not a detour—even if your ultimate goal is academia. On the contrary, it helps you view your field objectively and gain new perspectives; stepping into society once has substantial value.

Conclusion

We have seen that starting full-time work as a new graduate offers multifaceted value. Early work experience broadens long-term career perspectives, leads to wiser decisions about future paths, and has positive effects on lifetime earnings and employability. The value of advanced expertise and credentials from graduate school is undeniable, but it is not an either–or trade-off against work experience. In fact, abroad it is common to work first and then return for graduate study, and in Japan more people are studying while working or entering graduate school after several years of experience.

The key is to clarify your priorities and purpose: do you want to specialize early, or first broaden your horizons in the real world? As the data and international comparisons here suggest, the benefits of “working first” are substantial, and it can be an excellent way to launch a long career. The experience, networks, and skills gained through early employment will help you if and when you go on to graduate school—and, if you decide not to, they will continue to serve as assets.

Careers are marathons, and today the course is far from linear. Working while learning, or relearning to change direction, is entirely normal. When you’re torn between starting work or continuing straight to graduate school, remember the value of early work experience presented here. This is not a denial of graduate study; rather, it is one strategy for expanding your long-term career options and becoming a professional who combines expertise with practical capability. With evidence in hand and a clear eye on your goals and aptitudes, choose a path you won’t regret.

(Editor: Jelper Club Editorial Team)

Sources

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