There has been a major increase in the demand for higher education, as a result of the recession, and it is essential to examine what led to this heightened demand. Obviously, the lack of job openings has caused more people to stay in or return back to school. Many students have decided to go straight to graduate school, immediately after graduation, due to the dismal job market, while others have decided that it is the right time to come back to school, rather than sitting unemployed, they prefer spending their time towards earning a degree. This is why higher education, during times of recession, becomes a substitute of unemployment. This is also why during times of recession, job prospects become slow and unemployment rises. Therefore, job market conditions, the number of job openings, and the offered salary level all play a major role in helping someone with their decision to stay in or return back to school, especially during recessionary times.
There are an increasing number of college graduates in the population, in fact, more than ever before. This means that every year since the recession, not only are there remaining residual degree-holders who have not placed with a job but fresh
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new graduates are applying for jobs, leading to a flooded job market, where there are far too many people seeking employment and not enough job openings, which has led to a surplus of job applications when there is a shortage of job openings, thereby causing an increased amount of competition between candidates that are on the market and applying. In fact, a symptom of the recession is the large number of graduates applying to jobs that are below their skill set and even accepting job offers that are far below their qualifications, simply because it is at least some flow of income, which is better than having no cash flow at all. In fact, Heisz et al.’s article (2006) looks at the various different career effects of graduating in a recession, and there are many disadvantages facing students who are graduating during a recession, both in the short and long run. Unfortunately, students know that during recessionary times, a college degree, regardless of which type of degree it may be, may still not be enough, meaning that it does not provide certainty that you will find a job, and even if you do, it does not promise job security. Of course, employers do not have a difficult time finding candidates, because as mentioned earlier, so many people are applying to one specific job ad and also people who are overly qualified apply as well because it is a recession. Each job goes to the most qualified and skilled applicant with the needed skills, education requirements, and most years of relevant experience. Many people now realize that because of the surplus in applications, they need to become more competitive and skilled to attract potential employers. Therefore, many are turning to higher education to gain competitiveness and more skills that will benefit them on the job market. The recession will undoubtedly cause the education level attained and the years of schooling of the work force to rise. Therefore, higher education serves as an alternative and substitute to unemployment (Teixeira, 2011, p. 7). It is interesting to note that when unemployment is high, as mentioned earlier, the supply of workers and job applicants is far greater than the demand for all of these workers, simply because during high unemployment, employers are unable to afford new hires.
Therefore, there is a very large amount of people who want a job and because of the high unemployment rate, a large amount of people are actively seeking work, but there is only a small amount of people who are successful at finding a job. When the unemployment rate rises, the number of people who quit goes down. As a result, this makes it even harder for those people who are actively searching for a job to actually find work because of the fact that there are fewer people quitting or leaving their place of
employment. There has been an increase in student enrollment mostly because of the promise of higher annual income and job security. These two advantages that higher education has to offer are especially attractive to potential students because as a result of the recession, inflation is expected to cause prices of food, clothing and shelter to rise. Higher education offers many other advantages as well, it offers not only a better standard of living, and a better future with building skills that people will need, but also serves as strong cushioning against future economic instability, which has been a major lesson learned after this recession. Pursuing higher education is regarded as an investment in themselves and their future, raising their qualifications, leading to a more rewarding career rather than simply having just a job, improving their standard of living and employment options by opening up a wider range of new opportunities as well. Using data from the U.S. Department of Education, as the years pass, more and more students are enrolling in college after completing high school (Teixeira, 2011, p. 8). The more investment in higher education, the more skilled and educated the work force, which leads to an increase in consumption, aggregate demand, and employment. Instead they are seeing the link with high unemployment rates leading to less funding and cash flow to universities and colleges which will contribute to even further increases in the unemployment rates, unless if something is done about this dangerous cyclical trend. In Champlin’s article (1995), jobs and workers are best understood as part of a coherent system that organizes work according to certain rules. Recent work in industrial relations on employment models continues in this institutionalism tradition. Employment models are especially relevant for studying job quality because they make visible the key issue of job opportunity. This is at the heart of the current concern over job quality. Forecasts for the future quality of jobs in the United States are typically based on assumptions about the direction of economic growth and the potential impact of new technologies. However, for every analyst who predicts that new technologies will eliminate routine tasks and require more highly skilled workers, there is another analyst who argues that new technologies lead to deskilling. Similarly, the argument that the shift to services will lead to a future of low-wage, low-skill service jobs is balanced against optimistic projections for the growth of high-tech occupations. Prosperity seems to have whetted, not satiated, the desires of young workers for economic reward. Unlike college and university students, predominantly drawn from middle or upper-class families and anticipating lives of relative affluence, young workers may be just beginning to experience rising living standards and have no desire to give up these benefits. Taylor & Thompson’s study (1976) suggests that managers, union leaders and public policy-makers will face new challenges in the years to come. Young workers will be demanding both more job satisfaction and higher income. At the same time, educated persons entering the labor force are less likely to trust existing institutions to meet their needs. Young managers may have as much difficulty as their older superiors in relating to young workers.
The real problem, according to Bruni, is that a college education is now far less likely to result in gainful employment. While statistics suggest that the rate of unemployment for college graduates is far better than for those with only a high school education, Bruni argues that these statistics
In the article “what students need to know about today’s job crisis” by Don Bertram, he informs that jobs in America are disappearing due to overseas and computer based electronics (590-591). Today, a college degree just isn’t enough according to Bertram, claiming that “chances are that unless students have prepared themselves for the jobs in marketable areas, there will no one waiting at their doorstep except the lenders who have provided them with the loans needed to earn their degree” (592). An example that supports his statement is Kelsey, someone with a degree in marketing yet unable to obtain a career in that aspect, leaving her with 120,000 in student loans and a part time gig as a barista. Bertram stresses the idea that a college degree
History professor 's Ken Coates and Bill Morrison, in their article, ' 'The uses and abuses of university, ' ' emphasize the mismatch between what students are learning in university, and what the economy truly needs. Coates and Morrison 's purpose is to impress upon readers the idea that post secondary graduates are often bombarded with unexpected difficulties such as struggling to find paid employment, and accepting unskilled, low paying jobs. They adopt a candid approach in order to convey to their readers the idea that our education is not parallel with our ever changing Canadian economy. The article is concluded with an engaging statement addressing the extreme disconnect between what universities are producing, and what the students need in order to bridge the unemployment gap, and that if universities are unable to accept the truth behind why people attend universities, the graduates and the economy will continue to suffer. Through their use of a strong personal story, statistics, and then and now comparisons, they are able to effectively defend their bold thesis.
This report looks at college from the prospective of adults who have not attended college but are considering obtaining a degree. The research results give several statistics related to adults wishing to continue their education and the main concerns that they face in doing so. They mentioned many of the factors that influence adults’ decisions to pursue a post-secondary education and how they will pursue that education. Facts presented in this report show that many people wish that they could further their education. This report will allow me to broaden my viewpoint by not only viewing college’s worth to students recently graduated from high school but also to older adults seeking to return to college.
Unemployment is on the rise and, always trying to be avoided. By obtaining a degree, the chance of being out of work is reduced. Baum, Ma, & Payea (2013) claim, “The 2012 unemployment rates for 25- to 34-year-olds were 9.6% for those with some college but no degree and 7.2% for those with associate degrees” (p.20). With just an associate's degree, the chance of being unemployed plummets 2.4% compared to those compared to little college, proving when the higher of a degree is obtained, the lower
Throughout all of my research over the recession of July 1990-March 1991 I have concluded that it was not one of the largest recessions the United States has ever seen, but it was also not the smallest. This recession was only eight months long and did some damage, but not a lot. The Gulf War had the biggest impact on this recession along with the oil spill causing a rise of oil prices. The economy hit a low point and was not able to come out of it until the following year after the recession had already technically ended. Unemployment rates were at a low point towards the ending of the recession and because companies were hesitant about hiring new employees’ unemployment did not start getting better until the following year after the recession ended.
A majority of people believe that graduating from college will result in a well-paying job. Unfortunately, a degree will not secure a job for many graduates. In the U.S., the jobless rate for college graduates in 2012 was 7.7 percent, and has further increased in the past five years(Robinson). With such a large pool of unemployed citizens for employers to choose from, recent graduates are facing fewer opportunities for work due to little or no previous work experience(Robinson). Although many graduates are faced with unemployment, the majority do receive the opportunity to work. Sadly, many must work jobs they do not enjoy for salaries that make it difficult to make ends meet(Debate). Students are faced with mortgage-sized debts upon graduation, making it difficult for them to start businesses, buy cars or houses, or make other investments that would better the
College is the place where people go to retain the necessary training for a job that requires specific skills, which results in earning a higher pay check. In today’s world, employers are scouting out for individuals with the proper dexterities to fill the shoes for that specific job. Blanche D. Blank, the author of “A Question of Degree," argues that possessing a degree of higher education isn’t the only way to have a very successful life. This statement is highly argumentative, due to the fact that college graduates still out-earn people without degrees. Obtaining a college degree is one of the best things someone can do for themselves, when it comes to looking for a stable job. There is also so much more to college than just receiving a
Dostis, Melanie. “Degree Alone Not Enough To Prepare Grads For Workforce.” USA Today. USA Today, 31 Oct. 2013. Web. 16 April 2014
If more people went to college, and less went the vocational route, jobs will take a momentous hit. Today, companies will not even touch an application that does not include a Bachelor’s Degree; even if the Bachelor’s Degree has nothing to do with the job being applied for. Attention is not given to whether the hopeful applicant qualifies for the job; all that matters is that the applicant has a Bachelor’s degree. Murray best sums up the American job market when he says, “Employers do not value what the student learned, just that the student has a degree” (Murray). However, if less people obtain a Bachelor’s Degree, employers will be forced to base applicants on their skills, and abilities. Furthermore, important vocational jobs that lie vacant will be filled. Good electricians, carpenters, and construction workers will always be in
What caused the Great Recession that lasted from December 2007 to June 2009 in the United States? The United States a country with abundance of resources from jobs, education, money and power went from one day of economic balance to the next suffering major dimensions crisis. According to the Economic Policy Institute, it all began in 2007 from the credit crisis, which resulted in an 8 trillion dollar housing bubble (n.d.). This said by Economist analysts to attributed to the collapse in the United States. Even today, strong debates continue over major issues caused by the Great Recession in part over the accommodative federal monetary and fiscal policy (Economic Policy Institute, 2013). The Great Recession of 2007 – 2009 enlarges the longest financial crisis since the Great Depression of 1929 – 1932 that damaged the economy.
...truth. today’s job market is fiercely competitive. With unemployment at an all time high, it is near impossible for one to find a job with or without a college degree. Hundreds of layoffs and fewer openings can really make it hard on those who have just graduated and are trying to find a career. Just because you have a college education does not guarantee a job, or job security. It just makes you a better candidate.
According to the Bureau of Labor Statistics, college tuition and relevant fees have increased by 893 percent (“College costs and the CPI”). 893 percent is a very daunting percentage considering that it has surpassed the rise in the costs of Medicare, food, and housing. As America is trying to pull out of a recession, many students are looking for higher education so they can attain a gratified job. However, their vision is being stained by the dreadful rise in college costs. College tuition is rising beyond inflation. Such an immense rise in tuition has many serious implications for students; for example, fewer students are attending private colleges, fewer students are staying enrolled in college, and fewer students are working in the fields in which they majored in.
The most common causes of unemployment are getting fired and layed off for specific reasons. People might get layed off if a company is going out of business or maybe if there are positions in the company that are no longer needed. It’s difficult to find a job right away after being fired. Companies don’t want to hire someone who has just been fired for reasons such as failure to do a sufficient job, not showing up to work, stealing, etc. It’s also hard to find a job instantly after being layed off. In some cases the economy is down and it is hard to find any work in general.
Kahn, Lisa B. 2010. “The Long-Term Labor Market Consequences of Graduating from College in a Bad Economy.”