HONOLULU -- On graduation day, many college students are considering returning to school instead of looking for work -- a sign of a strained economy.

When jobs are scarce, many job seekers who want to increase their competitive edge in the workforce look back to college for more classes.

"A lot of us are encouraged to go into the Master's programs or grad schools so we can pursue our careers," graduate Shy Helm said.

Years of hard work finally culminated with a degree for 1,100 students at the University of Hawaii at Manoa, who celebrated graduation on Saturday.

While a job is on the minds of many, some will be back on campus in 2010 for graduate school. Many Hawaii graduates have learned an important lesson of the marketplace -- that many others are competing for the same jobs, including others with undergraduate degrees.

"A lot of careers require advanced degrees," UH Chancellor Virginia Henshaw said. "You need the advanced degrees and in a down economy, we see people come back and tool up in other areas so they have more options."

While some of the students were cheering the end of classes, other graduates are looking ahead to more semesters of studying, hoping for a better payout down the road.

"If we go into the Master's programs there will be more opportunities for us and make a better living," Helm said.

For Michelle Lopez, a single mother of five, getting her bachelor's degree was important for personal and financial reasons.

"It's for myself and to teach other parents like me, single parents, to get their education, it has benefitted me in more pay raises," she said.

Already the University of Hawaii has started to see an increase in students signing up for graduate school, which follows an increase in undergraduate applications last year.