College Unemployment Rates

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Introduction College students are facing crippling tuition, in fact, according to a 2014 study done by the College Board, college prices are rising faster than the rate of inflation, with college prices rising at a rate of 2.9% while inflation is rising at a rate of 1.4% (Lorin). These college prices have adverse effects on the wealth and welfare of college graduates as well as the job market. Recent college graduates have to make the decision of whether to re-enter college or take a job for which they are overqualified. Due to their economic situation or the inability to find an occupation, many graduates do not have this option, as they are forced to drop out of the job force. The increasing prices of college are negatively affecting both …show more content…

According to a study done by the Federal Reserve Bank of New York, as the unemployment rates for all groups followed the business cycle, in 2012, the unemployment rate for recent college graduates ages 22 to 27, at about 6% is higher than that of other college graduates ages 22 to 65 at about 4%. (Abel, Deitz, Su). These numbers are even bleaker than they seem, as a group that is highly underrepresented are those who have decided to drop out of the job market due to various reasons, such as the difficulty to find an occupation, or the lack of willpower. This is the case for most graduates. This situation is highly evident as 1.7 million people ages 18 to 29 have dropped out of the workforce (Kasperkevic). This is harmful to the graduates, as they believe that they have missed an opportunity out of high school to attempt to get a job, since 31% of millennials regret not entering the workforce sooner (Kasperkevic). To them, entering the workforce sooner would have been an easier and less economically stressful route. However, graduates leaving the workforce or not being able to find a job within it will have terrible effects on the economy, as they will be earning no money and will in no way be boosting the economy. Rather, they will be making the economy …show more content…

A poll by Reuters shows that over 40 percent of college graduates are underemployed, as their degrees have no worth in their current occupation (Reaney). These underemployed workers are increasing competition for lower-level workers (Weissmann). As a result, the current job market makes students reconsider their options. Instead of trying to obtain a job right out of college, graduates “are finding they have to seek alternative ways to land a position that suits them,” as one graduate, Rory Molleda, started an unpaid internship, then had countless job applications before finally finding the job that he wanted (Lorin, Smialek). College graduates who decide to do an internship before applying for a job are in an even worse position than those who are underemployed. They receive no pay, which is not helping them or the economy. Nevertheless, while an internship can be a beneficial experience, the degrees that they spend four or more years earning and spending tuition and accumulating debt for go to waste for a long time before they find a job, if they do find a

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