Posted on 02/20/2018 at 11:04 AM by Blog Experts
By Teresa Kroeger, Tanyell Cooke, and Elise Gould • April 21, 2016
This article provides some of the most current insight into what our graduates of 2016 were facing when they leave high school and college. It is not what we think…
“Key findings include:
- • Unemployment of young graduates remains elevated today, but not because of something unique about the Great Recession and its aftermath that has affected young people in particular. Rather, it is high because young workers always experience disproportionate increases in unemployment during periods of labor market weakness—and the Great Recession and its aftermath is the longest, most severe period of economic weakness in more than seven decades.
- • The vast majority (65.8 percent) of people age 24–29 do not have a college degree. Access to good jobs for these individuals is especially critical, as stable employment allows them to build a career or pay for further schooling.
- • Unemployment and underemployment rates among young graduates have improved but remain higher than before the recession began.
- o In addition to the unemployed (jobless workers who report that they are actively seeking work), the underemployment rate also includes those who work part time but want full-time work (“involuntary” part-timers), and those who want a job and have looked for work in the last year but have given up actively seeking work in the last four weeks (“marginally attached” workers). For young college graduates, the unemployment rate is currently 5.6 percent (compared with 5.5 percent in 2007), and the underemployment rate is 12.6 percent (compared with 9.6 percent in 2007).
- o For young high school graduates, the unemployment rate is 17.9 percent (compared with 15.9 percent in 2007), and the underemployment rate is 33.7 percent (compared with 26.8 percent in 2007).
- • The high share of unemployed and underemployed young college graduates and the share of employed young college graduates working in jobs that do not require a college degree underscore that the current unemployment crisis among young workers did not arise because today’s young adults lack the right education or skills. Rather, it stems from weak demand for goods and services, which makes it unnecessary for employers to significantly ramp up hiring.
Why this matters: Graduating in a weak economy has long-lasting economic consequences. For the next 10 to 15 years, those in the Class of 2016 will likely earn less, and have more spells of unemployment, than if they had graduated when job opportunities were plentiful.” (to be continued next month)
Retrieved from http://www.epi.org/files/pdf/103124.pdf