Unemployment Rate For College Graduates Lower When Compared to Other Workers

A recent study in the current issue of Current Issues In Economics and Finance suggest that the unemployment rate for new college graduates is the highest that it has been in the last 20 years. The good news is that compared to other workers the unemployment rate for college graduates (not recent) are lower than any other group.  While the unemployment rate for a college graduate is around 4% the unemployment rate for all workers was a little under 8%.

Unemployment Rates for Recent College Graduates

And Other Groups

Pract The Facts:

Given the state of the economy as a college graduates you will do better that all other categories over time. Consider your academic investment over a lifetime and with patience, and the right choices, it will pay off.

If you are thinking of going to school to better your financial situation consider jobs that pay well that don’t require the time commitment of a college degree. These jobs will require some special training however the training might not be as long as trying to earn your degree. Be advised that these jobs may not have the same earning potential over the long term as without having a college degree.

College Graduates’ Unemployment Rate, by Age

Graduates between the ages of 22 to 27 between 2009 and 2011 the unemployment rate was as high as 10%.  From the graph we can see the older the graduate the lower the unemployment rate. This could be because the older graduates may already be in the labor force.

Pract The Facts:

If we Pract The Facts we can see that it is rough going for new graduates who are new to the labor force.  We think this could be an issue with adult college graduates who enter the labor market for the first time as well.

The data represents graduates in a certain age group. It also represents graduates who are new to the labor force. If your age group falls outside that range this information is still relevant to you if you would be new to the labor force after graduation.

Underemployment Rates for College Graduates

Another important graph in this study is the underemployment rate for recent college graduates.  This graph suggests to you that many college graduates are working in jobs that don’t require a degree. From this graph you can see that close to 60% of recent college graduates in the age group were underemployed.

Pract The Facts:

Your major could have a lot to do with this statistic.

It is more critical than ever that you invest your time academically in areas that have the highest chance of pay off. In other words study areas where there is a need so the chances of you becoming employed after graduation are higher.

Do what you like after you reach your goal. For example you may want to be a writer however that is not where the jobs are. You may not like accounting but that is where the jobs are.  Go into accounting and continue to write as a part time career or hobby.

It would be a good idea to try and study a field which matches your current career path. For example if you are a bookkeeper then a major in accounting would be a good way to increase the chances you get a job in your major.

Look at your academic decisions like a financial investment. Your decision should lead you to getting the best return on your investment.

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Source: Are Recent College Graduates Finding Good Jobs